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Prosper WIB Logos
Hot on the heels of Lending Club’s partnership with community banks, Prosper today announced a partnership program with Western Independent Bankers (WIB). Banks who are members of WIB, will have access to consumer loans through Prosper’s platform. This includes more than 160 independent and community banks located in 13 western states.

Prosper’s CEO, Aaron Vermut had this to say about the recent partnership:

Independent banks are essential to the health of the American economy, but in order to compete and win customers, they need to be able to offer compelling products that are competitively priced and easy to understand. Prosper has facilitated billions of dollars in loans through its platform and continues to grow because our product is fast, convenient, and extremely consumer-friendly. We’re very excited to work with WIB and its members to expand awareness of a smarter, lower-cost alternative to borrowing money through traditional means.

It seems like the next step to scale the marketplace lending model are strategic partnerships that open up new channels for borrower acquisition. Prosper will certainly benefit from the influx of borrowers, without the additional costs of operating a branch location. Banks will leverage the platform and be able to quickly make loans to their customers at affordable rates. Membership banks will also have the opportunity to invest in Prosper loans.

This is a great move for the team at Prosper and it is probably the first of many bank partnerships to be announced. With these new partnerships, I believe we are starting to see the beginnings of what may be the widespread adoption for marketplace lending loans. I look forward to seeing how this will affect loan originations in the quarters to come.

Here is a link to the official press release.

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Lending Club Earnings Results Review – Q4 2014

by Ryan Lichtenwald on February 24, 2015

Lending Club Q4 Results

Lending Club held its first earnings call announcing Q4 2014 earnings results. The stock has had incredible swings since the original IPO price of $15. The stock opened 56% higher on its debut and eventually reached a high of $29.29, only to eventually fall to a low of $18.30. It closed today at $23.65 before earnings.

Since going public, Lending Club has been anything but quiet, announcing a Google partnership, a deal with Alibaba and finally a deal with 200 community banks.

Beating analysts predictions, Lending Club announced Q4 2014 revenue of $69.6 million and an adjusted EPS of .01. An average of revenue estimates were projected to be $66.67 million with an EPS of .01. Lending Club originated $1.415 billion worth of loans, compared to $698 million last year. This is an increase of 103% year-over-year. Q3 originations were $1.165 billion, which shows Lending Club’s consistent origination growth we’ve been accustomed to seeing.
Lending Club Total Loan Issuance

The theme of this earnings call is that they are investing heavily in the company. They have solid EBITDA margins, but Renaud stated that long term margins could reach 40%. Below shows their EBITDA margins over time.

 

LC EBITDA Margins

Lending Club provided the below information regarding the standard program originations by investor type and originations by program. I believe institutional investors are being under represented since standard program originations don’t include investors in the custom program loans. These loans are not available directly on the marketplace. Custom program loans make up 22% of the loan volume as of December 31, 2014 and would include products such as small business loans, medical loans and their super-prime loans. [click to continue…]

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My Quarterly P2P Lending Results – Q4 2014

February 23, 2015

One of the most popular features for readers is my quarterly returns post. I have been sharing the details of my Lending Club and Prosper returns since the 4th quarter of 2011 and I will continue doing so. While the principle of transparency seems to be less important at the major platforms these days here at […]

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Marketplace Lending News Roundup – February 21, 2015

February 21, 2015

During the week I share the latest marketplace lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. There was a slew of negative news and predictions about the marketplace lending industry this week. Even though I am very […]

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How Ryan is Investing in Lending Club and Prosper in 2015

February 20, 2015

Many folks find it valuable to learn how others are investing on both Lending Club and Prosper, especially when they are first getting started. Many strategies are discussed on the Lend Academy forum. I thought I’d share how I am specifically investing in both Lending Club and Prosper. My strategies have changed over time and […]

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Funding Circle Receives a $420 Million Investment Commitment from Victory Park

February 19, 2015

Today, Funding Circle announced a new partnership with Victory Park Capital. Victory Park, a U.S. based alternative investment firm with headquarters in Chicago, will be lending $420 million to small businesses across Funding Circle in both the UK and US over the next 3 years. This extends an existing relationship between the two companies. Funding […]

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Overview of P2P Automation and Analytics Sites – Part 2

February 18, 2015

There is an ever increasing number of websites dedicated to aiding in analytics and investing in Lending Club and Prosper. In part two of this comprehensive two-part series (click here for Part 1) we will look at all of the popular tools that investors use today (there are ten in all) in order to backtest […]

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Overview of P2P Automation and Analytics Sites – Part 1

February 17, 2015

There is an ever increasing number of websites dedicated to aiding in analytics and investing in Lending Club and Prosper. In this comprehensive two-part series we will look at all of the popular tools that investors use today (there are ten in all) in order to backtest strategies, automate their investments and analyze data. Analytics and data […]

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Marketplace Lending News Roundup – February 14, 2015

February 14, 2015

During the week I share the latest marketplace lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here. We Need A Small Business Borrowers’ Bill Of Rights from Forbes – Former White House policy advisor, Brayden McCarthy, calls for more […]

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The Lend Academy Team is Expanding

February 12, 2015

Many of you know that I spend a good deal of my time these days focused on the LendIt Conference. I am the CEO and Conference Chairman of LendIt which is pretty much a full time job. Consequently, I am finding it more difficult to find the time to write quality in-depth articles, the kind […]

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