Last week Lending Club quietly removed a feature that had been present in their system for some time. You used to be able to compare your p2p lending portfolio with other investors but they have now taken that feature away (well not entirely – see below). But I think this is a good thing.
First, though, let me explain what I am talking about here. Below is a snapshot I took of my Lending Club Roth IRA account from a couple of weeks ago (on the left) and one from yesterday (on the right). You can see the lack of a compare link in the newer screenshot.
Lending Club Has Made a Good Move Here
I never liked the Compare feature. I think it was misleading for investors because of one key factor – it didn’t take into account the age of a portfolio. So someone with a month old account (and therefore no defaults) is compared with a similar account that is two years old. If both accounts are invested in the same grade notes then the newer account will almost always appear to be doing better. [Read more…]