SEC Finding Said that Prosper Misled Investors

April 22, 2019
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From approximately July 2015 until May 2017, Prosper excluded certain non-performing loans from its calculation of annualized net returns that it reported to its investors, according to an SEC order released last Friday. The order found that Prosper reported overstated annualized net returns to more than 30,000 investors on individual account pages on Prosper’s website […]

‘Peers’ Are Almost Gone From Lending Club’s Funding Mix

February 20, 2019
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Long gone are the days of peer-to-peer lending. On Tuesday, Lending Club, a pioneer in the peer-to-peer lending space, reported that only 6% of its Q4 originations came from individual self-managed accounts. Accounts professionally managed for individuals made up 16%, with the rest of the loans being funded by a combination of banks, institutions, and […]

Why is P2P Lending Unraveling in China?

August 14, 2018
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Back in 2014, peer to peer (P2P) lending in China was all the rage. Multiple P2P platforms were launching daily, with investors and borrowers were eager to participate. According to South China Morning Post, the P2P lending frenzy hit its peak in 2015 when about 3,500 P2P businesses were operating. Now, these same businesses are […]

Lending Club Hits Record for Originations

August 7, 2018
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In the second quarter of 2018, Lending Club originated a record high of $2.8 billion, up 31% from the same time last year. Net revenue also hit a record high of $177 million, up 27% year-over-year. During today’s earning call, Lending Club CEO Scott Sanborn said that the company completed a successful securitization this quarter […]

What’s Lending Got to do With Cryptocurrency?

January 10, 2018
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crypto trading

Facebook and Snapchat might be the last things that employees are being distracted by these days. Instead it’s Coinbase and Blockfolio, two cryptocurrency apps, that are quickly stealing the attention of young finance professionals. And the interest in Bitcoin, Ethereum and alt coins is causing some in the industry to wonder if the phenomenon can […]

Is Lending Club Misleading New Investors About Past Performance?

December 3, 2017
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Lending Club IPO

Above: Lending Club tells new investors that 99% of portfolios aren’t losing money New retail investors interested in the Lending Club platform are greeted with a friendly statistic, that “99% of portfolios with 100+ Notes have seen positive returns.” That’s a slippery statement, which is probably why they footnoted it. The footnote says that only […]

Good Riddance F and G Notes on Lending Club

November 9, 2017
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red ink

When Lending Club announced they were discontinuing F and G grade notes on their platform for investors, I wasn’t surprised. Investors in general have been reporting disappointing returns, even dipping into negative territory some months. My own portfolio there is on track to generate a loss for 2017, which seems even worse when I consider […]

Lending Club Has Become the Domain of Banks as Peer-to-Peer Continues Decline

August 8, 2017
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originations by source

Lending Club’s latest quarterly report revealed the future of their platform, as a conduit for banks to make personal loans. As illustrated below, banks have gone from funding only 13% of originations three quarters ago to 44% of all originations in the most recent quarter. That’s an increase from $265 million to $955 million. Source: […]

How P2P Lending’s Evangelist is Faring Now

May 24, 2017
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Peter Renton, a co-founder of the LendIt Conference and p2p lending investor since 2008, published his latest portfolio performance data on Monday. While he wrote that the downtrend is continuing unabated, he still reports an overall marketplace lending return at 7.73%. Notably, he reported that one of his Lending Club accounts actually lost money in […]

Funding Circle is Closing its Forum

May 1, 2017
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Funding Circle Board

One notable remaining aspect of Funding Circle’s peer-to-peer roots has been its own online forum. If you haven’t been part of that community, you’re too late, since it’s shutting down on Tuesday. According to a forum admin, “there has been a developing trend towards a small number of investors asking questions about a narrow range […]

For Lending Club Borrowers, Interest Now Accrues During Grace Periods

February 26, 2017
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Lending Club CEO Scott Sanborn Presents at Money2020

On February 24th, Lending Club eliminated a courtesy that had long been afforded to borrowers, interest waivers during grace periods. Specifically, borrowers who missed a monthly payment were given 15 extra days to make the payment with no extra interest assessed or late fees. Going forward, interest will indeed accrue during grace periods. “we are […]

‘Peers’ Continue Retreat from Lending Club

February 18, 2017
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The peer aspect of peer-to-peer lending continued to erode last year, according to Lending Club’s year-end earnings presentation. Self-managed individuals, those still making their own investment decisions, only made up $263 million of their 4th quarter’s origination volume, reaching the lowest level in two years. That’s nearly 38% lower from the peak of $419 million […]

Nude Photos Used as Collateral for Loans, Leak

December 2, 2016
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nude photos for online loans

Perhaps the only thing worse than sending a nude photo of yourself to a lender as collateral is learning that the photo had been leaked on to the internet. In China, some online lenders hold on to nude photos of their borrowers (typically women) to use as leverage to pay up. If they don’t, the […]

Bitcoin-based P2P Lending Platform BitLendingClub Shuts Down

December 2, 2016
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Zcash bitcoin

BitLendingClub (not to be confused with Lending Club) has shut down their bitcoin-based p2p lending platform, citing regulatory pressure. A message posted on their website says, “over the last year or so, the regulatory pressures has been increasing to the point that it is no longer feasible to maintain the operation of the platform. We […]

Chinese Regulators to Cap P2P Investments

August 24, 2016
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Chinese Piggy Bank

As per the new propsosed cap, an individual lender can only provide loans US$30 on one platform, and cannot lend more than US$150,000 in total.

Funder or “Funda”? Either Way, The Korean Government is Worried

July 25, 2016
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South Korea P2P Lending

In South Korea, the government isn’t sure if Funda is a direct funder. Funda, ironically spelled like the New York pronunciation of the word, is one of several companies offering high yields to investors across their peer-to-peer lending marketplace. The average rate of return is 10.94%, according to Funda’s home page. But according to Bloomberg, […]

China Ponzi Scheme: Central Bank Collects Data on Risks, Funds Deployed

May 23, 2016

Chinese Yuan

The can of worms was set open with the shakedown of Ezubao, the Chinese P2P lending site which duped 900,000 investors of $7.6 billion in February this year.

China Ponzi Scheme: Police Crack Down on Shanghai Lender, Wealthroll

May 16, 2016
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Chinese police have been ordered to shut down illegal online lending sites and take swift action against suspects.

Did Peer-to-Peer Lending Sell its Soul to Wall Street?

May 8, 2016
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Broad Street

“We have so many fans but we also have some people here that are looking to take advantage of us, that are here for a short term trade and they won’t be part of this industry.” – Ron Suber, President of Prosper Marketplace Ron Suber may have been talking about specific players in the capital […]

Google Ditches Debit Card for P2P Transfer

April 1, 2016
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Google HQ

Wallet Card, which was launched in November 2013 lets users make payments at ATMs, banks and any business that accepts MasterCard Debit.