Scott Sanborn

Yeah, so we serve a customer base we call the middle majority.

They are, if you think about credit, which we are a credit-centric bank, if you've got a lot of money, you don't need a lot of access to credit.

You pay cash for a car.

You save up to send your kids to college.

If you're on the other end of the spectrum, you can't really access credit.

So there's this middle group that are high-income people.

heavy users of credit so they can afford a car they can afford to send their kids to school but they need to use credit to do it that that's who we serve it's a really big customer base it represents about a third of the us population but it's close to half of the credit wallet so they are more likely than average to have every form of credit and that credit is with the exception of mortgages also larger than average that's what we serve how much do these people usually make

Our average and you know, obviously misleading average is gonna be misleading, but average is about $125,000.

But you can think of it as ranging between call it $80,000 in individual income to about 200,000 is where we really over index.

yeah we we do so you know we were born as a marketplace initially everything we originated we sold um when we acquired the bank in 21 we started to hold a portion of of our loans on our balance sheet that both

gives us a stronger and more resilient earnings profile, also allows us to do other things, innovate using our balance sheet.

And what we found is just by aligning our interest with our loan buyers, we're the largest eater of our own cooking.

We're the largest holder of Lending Club loans.

We care very deeply about the performance of the credit.

And credit is always evolving.

It's very dynamic.

Because we have a balance sheet, what we can do is when we want to test something new, we test it on our balance sheet.

Let's try a longer duration.

Let's try a larger loan size.

Let's try a new marketing channel.