California-headquartered regional lender Union Bank has entered an agreement with the P2P loan approval site, Lending Club, providing a further boost to the growing P2P sector.

Under the agreement, Union Bank, the 422-branch-strong US-based subsidiary of Japan’s MUFG will purchase personal loans from Lending Club, alongside working together to create new credit products to be made available to both companies’ customer base.

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As of 31 March, over $4bn in personal loans has been originated through the Lending Club platform.

James Francis, EVP at Union Bank, said: "This relationship will allow Union Bank to invest in high quality assets while bringing new products to our customers.

"Lending Club delivers an excellent customer experience and has established a reputation for innovation.

"We are excited to work with this innovative organisation," he added.

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Renaud Laplanche, CEO of Lending Club, commented: "Union Bank has an admirable reputation for transparency, high quality products and customer service.

"We feel honoured to join with Union Bank to bring innovative solutions to market together," he concluded.

Union Bank, has become the latest commercial bank to have bought up loans originating through P2P platforms, following Citi Group, Capital One, Bank of Montreal and Deutsche Bank.

In March 2014, Barclays Africa acquired a 49% stake in South African P2P lender RainFin.

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