Like most companies that sell loans to investors, the digital marketplace bank LendingClub (NYSE: LC), which specializes in originating unsecured personal loans, has struggled as rapidly rising interest rates and normalizing credit conditions have created headwinds.

LendingClub has done a lot of work in recent years to change its business model, including the company's transformational acquisition of a bank charter in 2021. But ultimately, it will need the Federal Reserve's unprecedented rate-hiking campaign to cease so it can rejuvenate its business. Let me explain.

LendingClub specializes in credit card debt consolidation, allowing largely prime consumers to refinance their credit card debt and get a much cheaper interest rate.

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Source Fool.com