LendingClub Retail Investors Still Frozen Out In Several States After Sudden Restriction

December 5, 2019
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On September 23, retail investors on the Lending Club platform in 5 states received strange news, they had been temporarily restricted from buying notes because of the state they lived in. No further information was provided. 74 days later, investors in New York, Florida, Texas, Arizona, and North Dakota (the affected states) are still frozen […]

StreetShares Discontinues Major Segment of Its Financing Business

December 3, 2019
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StreetShares quietly discontinued a major part of its financing business on November 15, a new disclosure filed with the SEC revealed. “For new customers, the Company is no longer offering to factor invoice receivables,” the letter signed by General Counsel and Chief Compliance Officer Lauren Friend McKelvey says. The company had purchased more than $112 […]

Flender Makes BIG Mark in Ireland’s SME Lending Market

November 26, 2019
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Ireland can seem like a small place, so much so that on my way to meeting with Colin Canny, Flender’s Head of Partnerships, I quite literally bumped into Flender’s co-founder & CEO Kristjan Koik who was walking through Dublin’s Silicon Docks. I recognized Koik from the who’s who catalogue of executives I had compiled before […]

Funding Circle UK Referring Some Large Loan Applicants to Competitors

November 11, 2019
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Funding Circle UK has begun to refer applicants seeking an amount above their maximum loan size limit of £500,000 to Iwoca, MarketInvoice and French bank BNP Paribas, The Sunday Times reported. Previously, Funding Circle would just turn them away.

Lending Club Originated $3.3B in Loans in Q3

November 5, 2019
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Scott Sanborn, Lending Club CEO

Lending Club originated $3.3B in loans in q3 and reported a minor net loss of $400,000. That loss was a $22.4M improvement over the same period last year, mainly due to an increase in “net revenue” and a decrease in class action and regulatory litigation expense. One of those class action lawsuits against them was […]

How Linked Finance is Linking Irish SMEs With Quick Loans

October 1, 2019
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Google Maps was convinced that I was already at my destination, but that didn’t make sense because I was still sitting in my cramped Airbnb rental apartment in Dublin and hadn’t left to go anywhere yet. “Oh man please tell me Google works in Ireland,” I said to myself while glancing at the time and […]

Could Peer-to-Peer Lending Be Resurrected By Falling Interest Rates? At Least For Now?

September 19, 2019
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Peer to Peer

SEC Finding Said that Prosper Misled Investors

April 22, 2019
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Prosper Marketplace

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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Lending Club breakdown

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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China crowd illustration

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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Scott Sanborn, Lending Club CEO

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 […]