LendingClub, US-based online lending platform that connects borrowers and investors, has received all the regulatory approvals to acquire digital bank Radius Bancorp.

This development comes after LendingClub agreed to buy Radius Bancorp and its wholly-owned subsidiary Radius Bank, in cash and stock deal worth $185m, back in February last year.

Radius, which runs a branchless digital banking platform, has $2.4bn in total assets and $1.7bn in deposits.

The digital bank said to use “state-of-the-art” technology to offer a “superior” banking experience to consumers and small businesses (SMBs).

Using the platform, customers can open an account within three minutes.

The account comes with features including early direct deposit, cash back rewards, bill pay, financial tools marketplace, and a personal financial management dashboard.

Moreover, through its open APIs, the bank offers its white label banking-as-a-service (BaaS) functionality to fintech firms.

This includes checking accounts, digital onboarding, and account management.

Additionally, the digital bank also offers deposit, treasury management and lending services to SMBs, unions, municipalities, and non-profit organisations.

LendingClub and Radius’ business combination will create the first public neobank in the US, post-acquisition completion.

The acquisition will grow LendingClub’s member base, as the platform will now be able to offer deposits.

Additional details of the acquisition will be provided by LendingClub during its Q4 2020 earnings.

LendingClub CEO Scott Sanborn said: “The customer benefits of this acquisition are even clearer now that Covid has accelerated Americans’ move to digital banking.

“As the only full-spectrum fintech marketplace bank, LendingClub will be able to use our technology and data-driven platform to provide new products and services to our millions of members that will help them both pay less when borrowing and earn more when saving.

“By combining with Radius, we will create a category-defining experience that will also dramatically enhance the resilience and earnings trajectory of our business.”

Subject to the remaining customary closing conditions, LendingClub expects the transaction to be completed by 1 February 2021.