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“Based on LendingClub’s track record of loan performance and our extensive review, we are excited to establish this purchase program and invest on the platform,” Samsky said.

In the United States, LendingClub made an early splash in the fintech sector with a technology platform that operates at a lower cost than the loan operations of traditional banks. As the result, the company says it is able to “pass the savings on to borrowers in the form of lower rates and to investors in the form of solid returns.”

The new business model has drawn scrutiny from regulators, particularly since May when LendingClub’s founder and chief executive Renaud Laplanche resigned following an internal review. The review revealed issues with “data integrity and contract approval monitoring and review processes,” and Laplanche’s departure prompted queries from governmental and regulatory authorities, LendingClub said in subsequent regulatory filings.

The fintech firm said it was co-operating with requests for information from the authorities.

Claude Breton, a spokesman for National Bank, said Monday that the Canadian bank does not intend to disclose the business terms behind the arrangement with LendingClub, including how the two companies will be compensated.

“We are buying prime loans on the Lending Club auction platform,” he said in an emailed statement. “We won’t detail the specifics.”

A Canadian bank analyst said Monday that the loan facility arrangement is not material to National Bank, as it represents about half of one per cent of the bank’s $230 billion in assets.