FinTech News
LendingClub Acquires Spending Intelligence Platform Cushion
The marketplace lender LendingClub has announced its acquisition of another FinTech platform.
About LendingClub’s Purchase of Cushion:
This week, LendingClub revealed that it had acquired the intellectual property and “select talent” from Cushion. The platform is an AI-powered spending intelligence service that helps customers track their finances by looking at their banking transactions. This includes monitoring bills, managing subscriptions, and making on-time payments. Additionally, the platform can help users build credit.
Cushion was founded in 2016 and raised $21 million in funding. This includes a $12 million Series A led by Rose Park Advisors in 2022. While the service had a total of more than one million users since launching, it shut down its platform earlier this year.
This deal comes only a few months after another LendingClub purchased another shuttered FinTech app. In October, the company acquired assets from Tally — which wound down its service in August 2024. As LendingClub notes, those assets will help simplify credit card management for borrowers and assist them in optimizing payments.
What They’re Saying:
Announcing the acquisition, LendingClub’s CEO Scott Sanborn said, “LendingClub is committed to helping consumers improve their financial standing by providing visibility into their debt and then offering cost-effective ways to pay down that debt. Cushion’s technology complements our DebtIQ experience to provide our members with the tools and information they need to take control of their debt and spending.”
Sanborn added, “With credit card balances and interest rates at historic highs and consumers seeking ways to keep more of what they earn, the need for our solution has never been greater.”
Meanwhile, the founder of Cushion (and now the Senior Director of Product at LendingClub) Paul Kesserwani stated, “I’m excited to bring Cushion’s technology and expertise to LendingClub’s five million members. Over the past eight years, we’ve built one of the most advanced platforms for aggregating alternative financial data and unlocking deeper visibility into transactions – critical areas for helping consumers understand and manage their financial obligations.”
My Thoughts:
Based on my research, it would seem as though the Cushion that LendingClub is acquiring isn’t the one built for freelancers that helps them forecast their income. It always amazes me how FinTechs (and other businesses) have the same or similar names.
In any case, while it remains to be seen how LendingClub will utilize tools from Cushion or Tally, I do think the strategy of purchasing defunct startup assets is an interesting one. After all, I’ve seen plenty of platforms that had great ideas but couldn’t make it on their own. So, hopefully this ends up being a win-win for the two companies and can also benefit LendingClub customers.
Author
Other Articles by Kyle Burbank
Credit Card News
FinTech News
FinTech Brokerage App Stash Raises $146 Million in Latest Round
A popular brokerage app has revealed its latest "mega-round." About the Round: This week, Stash announced that it's raised a new round of $146 million. The Series H was led by Goodwater Capital with returning investors Union Square Ventures, StepStone Group, Serengeti, and the University of Illinois Foundation also participating alongside funds and accounts advised by T. Rowe Price Investment Management, Inc. To date, Stash has now raised $666 million in funding,...
Money Management Product Reviews
