When Prosper began back in 2006 they encouraged borrowers to form groups. A group consisted of a group leader and a bunch of borrowers who all shared something in common. The idea being that having some social connection between borrowers would reduce delinquencies.
Back then these groups were described as “the heart of the Prosper marketplace” and borrowers often received better rates by being a member of a group. Also, group leaders were sometimes given monetary rewards for recruiting borrowers on to the platform.
Fast forward five years and groups have been very much de-emphasized at Prosper. I think the main reason is that groups didn’t really make a big difference to defaults. As a borrower, if you are a member of a group, your loan has to be approved by the group leader before it becomes live on the platform.
But groups haven’t gone away. You have to search for a link to the groups page om Prosper but there are several groups that are still active and some are doing very well for investors.