Wow. There are no summer doldrums in p2p lending. We have gone from a total of $63.8 million in new loan issued by Lending Club and Prosper to $75 million in just one month. This is by far the biggest one month jump in history thanks primarily to Lending Club and their massive increase in originations in July.
Lending Club’s Loan Volume up 20% in July
Throughout the past year Lending Club has been growing steadily. Typically, their loan volume has been up around 7-10% month over month – it was rapid growth but steady and predictable. In July their playbook has been thrown out the window as their volume has rocketed up almost 20% from the previous month.
The official numbers for July were $60.1 million in new originations spread over 4,627 loans. This last number was even more impressive – the number of loans were up 21.2% over the previous record set in June. The average loan size dipped below $13,000 for the first time in six months as it continues to fall after the high of over $14,000 reached in February.
For most of July the number of loans available on Lending Club at any one time was over 2,000 and as I write this there are over 2,500 new loans available for investors. Clearly, they have their foot on the marketing accelerator and they are not letting up. It will be very interesting to see if they keep this pace up in August. Given the fact that August is a long month and there are no public holidays I would expect loan volume to easily end at over $70 million this coming month.
Their 18-month chart is below, note the big bump at the end. The black line is the three month moving average.
Prosper Records Another Very Strong Month of 10% Growth
But for Lending Club’s massive month the Prosper numbers would also look impressive. Total loan volume came in at just over $14.9 million up 10.1% from last month. There was also a record number of loans issued at Prosper – 1,961 loans were issued in July for an average of $7,611.
Normally, I include the total loan volume for the major Prosper investors in my monthly update but with Lendstats still not allowing any Prosper queries I don’t have access to that data this month. I have found a work around for next month but for July I have no investor breakdown. Given the increase in loan volume, though, I suspect it was another big month for Worth-Blanket2.
What is interesting is that Prosper is at the exact same volume that Lending Club was at just 18 months ago. If they stick to a similar growth curve we should see loan volume of $20 million by the end of the year. Below is the Prosper 18-month chart and their three month moving average.