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My Ten Christmas Wishes for Lending Club and Prosper

by Peter Renton on December 21, 2012

I have made a list and checked it twice. If the p2p lending Santa Claus came to my place and asked me what I want for Christmas from Lending Club and Prosper this is what I would tell him. Here are my top five wishes for each company.

My Lending Club Wishes

1. Automated investing

We know that new notes are added to the platform four times a day (at 6am, 10am, 2pm and 6pm Pacific). Why can’t I have a way to invest in these notes in an automated way? Making me login four times a day to see if any of the new notes meet my criteria is a bit ridiculous. Prosper’s Automated Quick Invest has been around for over a year now. As the industry leader you should have it as well.

2. Instant transfer

Four days to transfer money is too long. Again Prosper is ahead of you on this one with their instant transfer feature. Even if you don’t do that it should only take a maximum of two days to transfer in a deposit as it does when I move money into my Vanguard or TD Ameritrade accounts.

3. Folio improvements

Folio is a joke. Since it was released over four years ago there have only been minor improvements. It needs a complete overhaul and you know it. That would be a nice Christmas present. While it is not unusable it is slow and unwieldy and has a terrible interface. Why can’t we use the same filters on Folio that we use on the primary platform? Would be nice.

4. Ability to link accounts

I have four accounts at Lending Club and I am about to open another one. Managing multiple accounts is a royal pain. There should be a way to link accounts so I can get an overall picture of my investments and to also prevent me from investing in duplicate notes.

5. Repeat borrower flag

You have told me that only around 5% of your borrowers are repeat borrowers, far less than Prosper. But why can’t you just let us know which borrowers they are? Seriously, this would probably take one programmer less than a day to implement and I know many investors would love it.

My Prosper Wishes

1. Return to fast growth

You have had a 4th quarter slump this year. I would like lots of new retail investors as well as Worth-blanket2 and MI2 to come back and start investing again. You need to get that train moving again. Onwards and upwards.

2. A large round of venture funding

When we analyzet your latest financials it looks like you only have enough money to last through the 2nd quarter of 2013. Another round of funding would give everyone some real confidence and make it a big round that can take you through to being cash flow positive.

3. Resolution of the class action lawsuit

The class action lawsuit has been hanging around now for several years. I hope we can get this resolved early in the New Year so we can all move on from it. [This wish may come true because I have been told there will be a hearing in mid-January.]

4. Add portfolios

I have invested in over 1,200 notes on Prosper over the last 2 ½ years. I have used several different strategies during this time period. I would like to be able to separate the notes from the different strategies into portfolios like I can at Lending Club.

5. Ability to download notes for analysis

While it is nice to have sites like Prosper Stats provide some analysis of our own portfolio it would be better if we could just download our notes to a spreadsheet like we can at Lending Club.

Of course, there are many more things we could wish for but that is my top ten. What would you add?

{ 13 comments… read them below or add one }

Andrew N December 21, 2012 at 12:12 pm

Peter, have you heard any additional news from Lending Club about linking accounts? In one of your previous posts you mentioned that this was an issue being worked on. I was told last month by someone at Lending Club that accounts are purposely kept separate so that investors “do not get confused and accidentally make an investment in an account other than the one they intended to access.” That seemed like a very weak excuse and I really hope that this is not a permanent issue.

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Peter Renton December 21, 2012 at 12:23 pm

Andrew, I think that is a lame excuse as well. I haven’t spoken to anyone at LC about that issue since the summer and back then they said it was on the list but it would be a huge undertaking. I don’t expect anything on this from LC in 2013 to be honest. But it would be nice.

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Terry December 21, 2012 at 12:12 pm

What would I add to the wishlist?

(1) To have as much money in my Prosper account as yours Peter :)

(2) And as many readers for my ProsperToRetire.com blog!

(3) In all honesty… my P2P wishes are about the same. IMHO, the Prosper wishes are most heavily required to just keep the company alive. LC is strong and will continue on… dare I say “LC will live long and Prosper”. If Prosper wish 1 and/or 2 do not come true I will likely shift my 3 accounts over to LC.

(4) I had talked with someone at Prosper about the ability to manage multiple accounts several months back. They said it was “in the works”. At this point just getting enough gas in the engine to keep it running is main concern.

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Peter Renton December 21, 2012 at 12:29 pm

Good wishes Terry. As you can by my list my wishes for Prosper are focused on getting them towards profitability. They are 18-24 months behind LC on the growth curve so they have a long way to go to break even.

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SarahV December 21, 2012 at 1:51 pm

I’d like Lending Club to be available in my state. In lieu of that, Folio fix, Folio fix, Folio fix. In that order.

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Peter Renton December 21, 2012 at 5:24 pm

Well with the Lending Club IPO in the not too distant future you will get your wish at some point. In the meantime, I will be rooting for some folio changes for you.

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Dan B December 21, 2012 at 2:13 pm

LC………Instant transfers of investing dollars like Prosper. Ability to log into/invest in multiple accts. in the manner that Peter has laid out.

Folio…………I just finished tweaking my Folio strategy, so ignore what everyone is saying, except me. Everything’s fine, don’t change a thing.

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Peter Renton December 21, 2012 at 5:25 pm

So, Dan are you purely a seller of notes or are you also a buyer? As a seller I think the system is working ok, it is the buying of notes that causes challenges.

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Dan B December 21, 2012 at 5:44 pm

100% seller.

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Rich C December 22, 2012 at 1:53 am

Peter,

Great website. As a relative newbie to P2P lending, I wish there was some sort of “paper trading” system available to learn the ropes of Prosper and/or Lending Club without putting up funds first. My Internet searches haven’t yielded any possibilities. Are you aware of anything?

Thanks again for your site and info.

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Peter Renton December 22, 2012 at 7:26 am

Rich, There is no paper trading system right now but I have heard a couple of people talking about setting something like this up. So stay tuned.

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Kent December 22, 2012 at 7:08 am

I would add these Prosper wishes:

1. Update investor ROIs on time each month or even better once a week. If sites like Prosper stats can update ROIs more frequently, why can’t Prosper.

2. Add a search criteria for Blenders.

3. Hire Peter as a consultant.

2. Keep doing most of what you do, Quick Invest, identify repeat borrowers, etc. I love Prosper more than Santa!
.

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Peter Renton December 22, 2012 at 7:28 am

Kent, Your first two wishes are also on my list, they just didn’t make the top 5. You flatter me with number 3 – I have given Prosper plenty of free advice over the years but if they wanted to hire me as a consultant I would happily help them out.

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