Every Saturday I bring you the latest news from the world of peer to peer lending. These are the best of the news articles and blog posts from around the web that I shared on Twitter this past week.
I started creating these weekly news summaries about five months ago and this week was by far the busiest I have ever experienced as far as news goes. It seems like everyone was writing about peer to peer lending this week including some really high traffic sites. Speaking of which, if you only read one article on this list make it the GOOD article. This article was all over Twitter and Facebook this week and it is an excellent article to send to someone who doesn’t really get p2p lending. Enjoy your weekend.
Investor Junkie – Lending Club (October 2011 Update)
Prosper blog – An Update on Peer-to-Peer Lending Performance
Yes, I Am Cheap – Two Years of Peer-to-Peer Lending Results With Prosper
Dataspora – Mining Lending Club’s Goldmine of Loan Data Part I of II – Visualizations by State
Smart Peer Lending – RECOMMENDATION ENGINE DETAILS
Lending Club Experience – Third Month and Going Strong
EurActiv (Europe) – Online business angels fly to SMEs rescue
Nickel Steamroller – Current Policy on Lending Club’s Data Export – What is its True Meaning?
Everything Finance – Prosper Peer to Peer Lending: A Review
Wiseclerk (UK) – Ratesetter Finishes Successful First Year
24/7 Wall St – Peer-to-Peer Lending: Opportunity for Investors & Borrowers Alike
GOOD – Peer-to-Peer Lenders Take Banks Out of the Credit Equation
Investor Junkie – Lending Club vs Prosper (this is a guest post I authored)
Money Q&A – How I Got Greedy And Lost My Shirt With Peer To Peer Lending Loans
P2P Lending News – How to Get Funded When Applying for a P2P Small Business Loan
Youtube – http://www.youtube.com/watch?v=_PWuRrwwmOg
Prosper^**
School alumni peer lending to current students (Prodigy -UK)
http://www.cityam.com/business-features/new-ways-raise-funds-your-mba
Dataspora’s post was great stuff
Who is doing the research here?
This topic is totally incorrect: ” Peer-to-Peer Lenders Take Banks Out of the Credit Equation”
The two biggest p2p lenders *Lending Club* and *Prosper* are affiliated with WebBank and Industrial Bank in Utah. Industrial Bank services GE Credit, GM Credit, American Express Credit and many store brand credit cards. They specialize in managing credit cards. They are a bank insured by the FDIC, they are just an Industrial Bank, like WalMart wanted to become.
The other kind of bank is a Commercial Bank. Same system, many of the same investors. This is from WebBank’s website:
Products & Services
As an Industrial Bank, WebBank can provide national financial solutions. There are few other financing options offering the flexibility, resources, experience and expertise as you have with WebBank. Our staff is comprised of industry experts who care about people. When you contact WebBank our conversation begins not with a machine telling you what to do but with a personal “hello”. We listen and work with you to develop a program that fits your specific needs and objectives.
Strategic Partnerships
WebBank is a leading provider of national origination platforms for consumer and commercial private-label and bank card programs.
Private-Label
The Strategic Partnership Group works closely with partners to design, develop, implement, administer and fund customized consumer and/or commercial closed network financing program(s) through WebBank. The following private-label products are currently supported by WebBank:
* Closed-end Installment Loans (Consumer & Commercial)
* Revolving charge (Consumer & Commercial)
Bank Card
Similar to private-label, the Group works closely with partners to structure and issue bank card branded products under WebBank’s charter and principal bank card association membership. Products supported:
* Private-Label / Co-Brand / Dual-Line Cards (Consumer & Commercial)
* General Purpose Credit (Consumer & Commercial)
* Small Business
* Fleet Cards
Alternative Financing Products
WebBank also currently supports the following types of alternative financing products:
* Peer-to-Peer
* Credit Card Alternatives
@Chasingbread – good catch on the Prosper Youtube video. I missed that one.
@Walter – another good addition. I liked Dataspora’s post (and they just updated it today with bad borrower’s by state) but I am looking forward to their next one which will supposedly show more detail about defaults.
@Doc Realtor – you are technically correct that Lending Club and Prosper are not completely taking banks out of the picture because they rely on banks to fund the loans. Although those loans are then immediately assigned to Lending Club and Prosper. Believe me they would love to not have to take this step but federal regulations demand it.
But I think the gist of the article and what attracts many people to p2p lending is that an investor can essentially perform the same role as a bank insofar as lending money at good interest rates to consumers. Until p2p lending came along this was a function that was unavailable to retail investors.
Thanks for the mention, and for the guest post!
Tanya at Dataspora is doing some AMAZING work!
Now if we could get Nick, Eric, and Tanya in a room together we would really have some strong data modeling.
@IJ, You’re welcome.
@Charlie, I agree. I am really looking forward to part II in this series.