During the week I share the latest p2p 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.
The Economic Health of a Borrower’s City Affects Loan Performance from Orchard – A guest post by a family office investor about how he decides which loans to invest in on Lending Club and Prosper.
Former BlackRock Executive Shifts to P2P Investor Blue Elephant from Crowdfund Insider – From the world’s largest asset manager to a p2p lending hedge fund.
LendingClub: Are Peer to Peer Loans Worth an Investment? from The Motley Fool – This analyst looks at the pros and cons of investing in the common stock of Lending Club.
Peer-to-peer lenders step into vacuum left by banks from TribLive – A look at peer to peer lending in western Pennsylvania and the impact it had on one borrower.
The Tithing of Credit Cards by James Alexander on LinkedIn – How p2p lending is impacting the credit card industry.
Fitch: Lending Club IPO to Be a Milestone in P2P Evolution (press release) – Fitch Ratings weighs in on the Lending Club IPO: “the P2P industry overall would benefit from a successful Lending Club IPO”.
[click to continue…]
For many years the p2p lending industry in this country has been dominated by two platforms: Lending Club and Prosper. Dave Girouard, the CEO and Co-Founder of Upstart and guest on this edition of the podcast, wants to change that. Upstart began with a unique lending idea called Income Sharing Agreements but earlier this year they pivoted to offer an unsecured loan product very similar to the other p2p platforms.
Half the team at Upstart are ex-Google employees so they have taken a unique data-driven approach to this industry. They have an interesting story to tell and there are takeaways here for all of us. In this podcast you will learn:
- How working at Google helped Girouard come up with the idea of Upstart.
- The similarities between making a hiring decision and a credit underwriting decision.
- How and why Upstart launched with a concept called Income Share Agreement (ISA).
- Why Upstart decided to change from the ISA to a regular unsecured loan product.
- Who the typical borrower is at Upstart.
- How these borrowers are different from a typical borrower on Lending Club or Prosper.
- The terms and interest rates for the loans on offer.
- How the underwriting at Upstart is similar to other platforms and how it is different.
- Why employability is an important factor at Upstart.
- [click to continue…]
Podcast: Play in new window