How would you define the success of Lending Club's auto refinancing service?

Introduction

Defining the success of Lending Club's auto refinancing service requires a comprehensive approach that considers multiple stakeholders and metrics. To address this product success metrics challenge effectively, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Lending Club's auto refinancing service is a financial product that allows consumers to potentially lower their existing auto loan payments by refinancing their current loan with a new one, ideally at a lower interest rate. This service fits into Lending Club's broader strategy of expanding its personal lending portfolio and diversifying its revenue streams.

Key stakeholders include:

1. Borrowers: Seeking lower monthly payments or better loan terms
2. Lending Club: Aiming to grow its loan portfolio and revenue
3. Investors: Looking for attractive returns on auto loan investments
4. Regulators: Ensuring compliance with lending laws and consumer protection

User flow:

1. Application: Users submit personal and vehicle information online
2. Offer: Lending Club provides refinancing offers based on the application
3. Acceptance: User selects and accepts an offer
4. Verification: Lending Club verifies user information and vehicle details
5. Funding: New loan is funded, and the old loan is paid off

Competitors in this space include traditional banks, credit unions, and online lenders like Capital One and RateGenius. Lending Club differentiates itself through its online-first approach and potentially faster approval process.

Product Lifecycle Stage: Growth - The auto refinancing service is likely in its growth stage as Lending Club expands beyond its core personal loan offerings.