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Radius Bank

A former Boston-based digital and community bank that became part of LendingClub’s banking platform.

Last updated August 24, 2026

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Overview

Radius Bank was a United States community bank and digital-banking provider that operated under the Radius name from 2014 until its acquisition and subsequent integration into LendingClub. The institution originated in 1987 as First Trade Union Bank, established in Massachusetts by a carpenters union with pension-fund capital. Its early identity was therefore closely tied to union-sponsored banking and community-oriented financial services. Over time, the bank broadened its commercial and consumer activities and developed a stronger technology focus. The bank faced pressure during the subprime-mortgage crisis after significant exposure to commercial real estate. In the years that followed, ownership changed substantially, with private investors acquiring approximately 95 percent of Radius Bancorp in 2016 in the context of changes associated with the Dodd–Frank regulatory environment. The institution adopted the Radius Bank name in 2014 as part of its repositioning. Radius combined conventional banking services with a digital delivery model. Its offerings included business deposits, commercial financing, Small Business Administration lending, equipment finance, consumer deposit accounts, online banking, mobile applications, and access to a broad ATM network. The bank also pursued embedded-finance and fintech partnerships, including relationships involving LevelUp, Prosper, Aspiration, and Treasury Prime. Its commercial banking business served small and middle-market companies, while its technology infrastructure supported banking-as-a-service and API-based account capabilities. Radius became notable in the fintech sector because of its relationship with LendingClub, an online lending company that was transitioning from a peer-to-peer lending model toward a broader digital-bank strategy. In February 2020, LendingClub announced an agreement to acquire Radius Bank for approximately $185 million in cash and stock. The transaction was described as the first acquisition of a regulated U.S. bank by a major fintech lender since the 2008 financial crisis. The acquisition gave LendingClub a bank charter, deposit-gathering capabilities, and a platform for combining lending with digital banking. The transaction closed later in 2020, subject to regulatory approval, and Radius’s operations were subsequently integrated into LendingClub’s banking business. The Radius brand ceased to function as an independent bank brand after the integration. LendingClub Bank, later known as LendingClub Bank, N.A., carried forward selected banking capabilities, including consumer deposits, commercial banking, SBA lending, and technology-enabled financial services. Radius is therefore best understood as a historical bank brand and predecessor institution rather than an active standalone bank.

History

Radius Bank began in 1987 as First Trade Union Bank in Massachusetts. It was created by a carpenters union and initially used pension-fund resources, giving the institution a distinctive labor-linked origin. The bank operated as a community financial institution and later developed services for consumers and businesses. During the subprime-mortgage crisis, the bank encountered difficulties associated with substantial commercial-real-estate exposure. The experience contributed to a period of restructuring and ownership change. In 2014, First Trade Union Bank was renamed Radius Bank, marking a shift toward a more technology-oriented identity and a broader digital-banking proposition. Radius’s later business combined traditional deposit-taking and lending with technology partnerships. The bank offered online and mobile banking, consumer deposit products, commercial deposits, financing for small and middle-market businesses, SBA loans, equipment finance, and other banking services. It maintained a physical branch in Boston while emphasizing remote account access and digital delivery. The bank also participated in fintech partnerships, including a relationship with LevelUp, a partnership with Prosper, and a 2015 partnership with Aspiration. These relationships reflected Radius’s effort to serve as infrastructure for technology companies as well as a direct provider of banking products. The commercial bank was an SBA lender from 2009 and initially concentrated that activity in the northeastern United States. In 2016, it created a national government-guaranteed lending team to expand the program. That same year, Radius acquired NewStar Financial’s equipment-financing division, adding a specialized commercial-finance capability. Radius also developed banking-as-a-service functionality. In October 2020, it expanded its Treasury Prime partnership through business API banking software and a sandbox environment designed for testing and integrating financial products. Ownership and regulatory changes also shaped the institution. Private investors acquired approximately 95 percent of Radius Bancorp in June 2016. The change occurred in an environment influenced by the Dodd–Frank Act and the regulatory requirements affecting bank ownership and governance. In February 2020, LendingClub announced that it would acquire Radius Bank for about $185 million in cash and stock. LendingClub was then a prominent online lending company seeking to move beyond its original peer-to-peer lending model. Acquiring Radius offered access to a regulated bank charter, deposits, commercial banking capabilities, and a foundation for a digital-bank strategy. The transaction was especially significant because it represented a fintech lender’s purchase of a U.S. regulated bank in the post-2008 financial-crisis period. The acquisition was completed in 2020 after regulatory and shareholder processes, and the bank was integrated into LendingClub’s operations in 2021. Radius Bank consequently stopped operating as an independent brand. Its banking capabilities became part of LendingClub’s bank platform, including digital deposits, commercial finance, SBA lending, and technology-enabled financial services. Radius is now a predecessor brand within LendingClub’s banking history rather than an active standalone institution.

  • 2021

    Radius is integrated into LendingClub

    [1]

    The Radius banking platform is incorporated into LendingClub’s branded banking operations and no longer operates as an independent bank brand.

  • 2020

    LendingClub announces Radius acquisition

    [1]

    LendingClub agrees to acquire Radius Bank for approximately $185 million in cash and stock.

  • 2020

    Business API banking rollout

    [1]

    Radius expands its Treasury Prime partnership with API banking software and sandbox testing capabilities.

  • 2016

    Private investors acquire a majority ownership stake

    [1]

    Private investors acquire approximately 95 percent of Radius Bancorp amid a changing regulatory environment.

  • 2016

    National SBA lending expansion

    [1]

    Radius establishes a national government-guaranteed lending team to expand SBA financing beyond its regional base.

  • 2016

    NewStar equipment-finance acquisition

    [1]

    Radius acquires NewStar Financial’s equipment-financing division and expands its commercial-finance offering.

  • 2014

    First Trade Union Bank adopts the Radius Bank name

    [1]

    The institution is renamed Radius Bank as it develops a more technology-focused banking identity.

  • 2009

    The bank becomes an SBA lender

    [1]

    The institution begins providing Small Business Administration lending, initially with an emphasis on the northeastern United States.

  • 1987

    First Trade Union Bank is established

    [1]

    A Massachusetts carpenters union establishes the bank using pension-fund capital.

Products and positioning

A technology-oriented community bank combining digital consumer banking, commercial finance, SBA lending, and embedded-finance partnerships.

  • Consumer banking

    Consumer digital banking

    Radius provided consumer deposit and transaction services through online banking and mobile applications. The digital model reduced reliance on a branch network while retaining a Boston physical branch during the Radius period. Customers also received access to a broad ATM network and international ATM-fee reimbursement features.

  • Commercial banking

    Commercial banking

    The bank offered deposit services and financing for small and middle-market businesses. Its commercial platform included business accounts, lending, and related treasury or payment services, positioning Radius as both a community bank and a technology-enabled financial-services provider.

  • Business lending · 2009

    SBA lending

    Radius was an SBA lender from 2009. Its program initially focused on the northeastern United States and later expanded nationally through a dedicated government-guaranteed lending team established in 2016.

  • Commercial finance · 2016

    Equipment financing

    Following its 2016 acquisition of NewStar Financial’s equipment-financing division, Radius added specialized financing for business equipment to its commercial product portfolio.

  • Banking infrastructure · 2020

    Business API Banking

    Radius developed API-based banking infrastructure with Treasury Prime. The 2020 rollout included business API banking software and sandbox testing tools intended to help fintechs and businesses connect to banking capabilities.

Brand decisions

  • 2020

    Sell Radius Bank to LendingClubM&A

    Background

    LendingClub was moving from peer-to-peer lending toward a regulated digital-bank model and needed a bank platform with deposits and commercial capabilities.

    Action taken

    Radius agreed to be acquired by LendingClub in a cash-and-stock transaction valued at approximately $185 million.

    Aftermath

    Radius was integrated into LendingClub’s banking operations, and the standalone Radius brand was discontinued.

    Transaction value. Approximately $185 million (Announced February 2020)

  • 2016

    Expand SBA lending nationwideStrategy

    Background

    Radius had traditionally concentrated SBA lending in the northeastern United States and sought to broaden its commercial reach.

    Action taken

    The bank created a national government-guaranteed lending team.

    Aftermath

    The move expanded Radius’s intended SBA coverage across the United States.

  • 2016

    Acquire NewStar equipment-finance divisionM&A

    Background

    Radius wanted to deepen its commercial-finance capabilities for business customers.

    Action taken

    The bank purchased NewStar Financial’s equipment-financing division.

    Aftermath

    Equipment finance became an additional component of Radius’s commercial banking platform.

  • 2014

    Rebrand as Radius BankStrategy

    Background

    The institution sought to modernize its identity and emphasize digital banking while continuing to operate as a community and commercial bank.

    Action taken

    First Trade Union Bank adopted the Radius Bank name.

    Aftermath

    The Radius identity became the platform’s principal consumer-facing brand until its later integration into LendingClub.

Recent events

  • Radius Bank partners with Currencycloud on international payments[2]

    Reported:

    Radius Bank announced a partnership with Currencycloud to offer its clients a way to send money to more than 180 countries. Radius Bank said it uses Currencycloud’s APIs to send outgoing international payments on behalf of its clients.

  • LendingClub announces acquisition of Radius Bancorp and Radius Bank[3]

    Reported:

    LendingClub announced a definitive agreement to acquire Radius Bancorp and its wholly owned subsidiary Radius Bank in a cash-and-stock transaction valued at $185 million. The transaction is subject to regulatory approval and other customary closing conditions.

  • Radius Bank appoints Grant Skeens to lending leadership role[4]

    Reported:

    Radius Bank announced that Grant Skeens joined the bank as Executive Vice President and National Director of Government Guaranteed Lending.

  • Radius Bank and Ametros announce banking partnership[5]

    Reported:

    Radius Bank announced a partnership with Ametros to provide banking services for Ametros members, including accounts for settlement funds.

  • Ametros Banking becomes available to members[5]

    Reported:

    Ametros Banking became available to Ametros members nationwide, offering checking and savings accounts powered by Radius Bank, subject to account approval.

  • Radius Bank adds Credible to its digital marketplace[6]

    Reported:

    Radius Bank announced that it expanded its consumer digital marketplace to include Credible, enabling customers to find loan offers through Radius channels.

  • Radius Bank and Brex announce partnership to create Brex Cash[7]

    Reported:

    Radius Bank announced a partnership with Brex to provide Radius Bank’s banking-as-a-service platform and create Brex Cash, a corporate cash management account that earns rewards on payments. The account was to become available to existing Brex customers on a rolling basis, with public availability coming soon.

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