LendingTree is an online marketplace that connects borrowers with lenders, offering a wide range of financial products, including mortgages, personal loans, auto loans, business loans, and credit cards. The platform allows users to compare loan offers from multiple lenders, helping them find the best rates and terms.
Founded in 1996, LendingTree is headquartered in Charlotte, North Carolina, and has grown to become a leading financial services company, providing tools and resources to help consumers make informed financial decisions.
Objective
LendingTree aimed to update its operational systems to meet the compliance requirements of a new regulated bank partner. The goal was to prepare its compliance program for the rigorous due diligence process and align it with the stringent standards set by the new bank partnership.
Background
A market-leading online lender exchange in the US was entering into a new partnership with one of the largest US banks.
As a highly visible company, this made it vulnerable to competitive pressure as well as regulatory scrutiny. Its lender network included hundreds of members, including large lending institutions, regional lenders, and an increasing number of emerging alternative players.
LendingTree’s new bank partnership was expected to substantially increase prospect referrals and earned income but also required it to undergo an especially rigorous and comprehensive vendor due diligence process.
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Challenges
LendingTree needed to upgrade various aspects of its compliance program to fulfill the stringent requirements set by its prospective bank partner.
This included enhancing their information security policies, updating operational procedures, and addressing any identified compliance gaps. The client’s high visibility in the market increased the pressure to meet these regulatory standards without compromising their competitive edge.
InnReg's Solution
InnReg implemented a series of targeted actions to help LendingTree meet its new bank partner’s compliance requirements:
Conducted a comprehensive compliance assessment: We thoroughly evaluated LendingTree’s existing compliance framework to identify areas requiring improvement.
Revised information security policies and procedures: Our team reviewed and rewrote the client’s information security policies to address any gaps and align them with the bank partner's standards.
Client Results
LendingTree successfully completed the vendor due diligence and contract negotiations with their new bank partner.
This partnership led to the establishment of an enhanced compliance and operations foundation, enabling ongoing growth. As a result, LendingTree efficiently processed more customer requests, expanded its network of lending partners, and diversified into new lines of business, including student loans, debt consolidation, and credit counseling.
