Both Lending Club and Prosper have started out 2012 strongly. In January Prosper broke $10 million for the first time and achieved an all time high in new monthly loan originations beating their previous high of $9.6 million set in May 2008. Lending Club had an amazing month with most days originating more than $2 million in new loans.
Lending Club Issues $34 Million in New Loans in January
Just seven months ago Lending Club broke $20 million in new loans for the first time. This month they came in at more than $34 million. They also issued far more loans than ever before: 2,622. All in all it was yet another very strong month.
The one statistic that I was somewhat surprised about this month is that the average loan size went down. In December the average loan was $13,678 (an all time high), but this month that dropped down to $12,967. I am surprised about this because Lending Club announced in late December that they were waiving service fees on large loans. I don’t know how that promotion has gone but I was thinking the average loan size would have increased because of it.
Lending Club has now originated $494 million in new loans since they started in 2007 and later this week they should cross over $500 million. Their 18-month loan volume chart is below – the black line is the three month moving average.
Prosper Records Their Best Month Ever
What a difference a year makes. A year ago Prosper had just completed their first full month without the auction system. There were few loans on the platform and they did a paltry $3.3 million in new loans. On this very blog some people questioned whether they would survive the year. Not only has Prosper survived but they are thriving with a good war chest of cash and rapidly growing loan volume.
As usual worth-blanket2 lead the way with an investment of $2.6 million in January (according to Lendstats). But this month worth-blanket2 was not alone in investing a seven figure sum. Another institutional investor made a big splash this past month.
We first learned of intelligent-repayment8 back in September. Since then they have been steadily investing a couple of hundred thousand dollars a month, certainly nowhere near the volume of worth-blanket2. But in January this all changed. They changed their screen name to Index_Plus and proceeded to invest over $2 million in new loans – not far behind worth-blanket2. It will be very interesting to see if this increased volume continues. But it is clear that Prosper wouldn’t have broken $10 million in January without this big bump from Index_Plus.
Below is Prosper’s 18-month loan volume chart.