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Author Topic: Email from Lending Club

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Email from Lending Club
OP: May 31, 2016, 11:00:00 PM
Just got this email from Lending Club about 30 minutes ago.  Looks like a pretty strong statement of commitment to retail investors.

Hello ______,
I wanted to check back in.
Some of you responded to my first email with a note about your continued support; others of you are talking to our Investor Services team to get your questions answered.
The most common question we're getting is this: Are we committed to individual investors?
Emphatically, yes.
You're the heart of our marketplace.
We started Lending Club with the simple but revolutionary idea that we could democratize access to consumer credit. That idea - and our commitment to it - will never change.
Our mission is to make people's lives better. That's true for borrowers - helping them get access to responsible credit - as well as investors. We want to help you build your financial future.
You've always been the foundation of our marketplace. You helped us start Lending Club in 2007; now our individual investor base is over 150,000 members strong. We've also improved the platform based on your feedback. We created Automated Investing, simplified the IRA investment process, and integrated our platform with TurboTax.
We're doubling down on our efforts to serve you. We're staffing up on our Investor Services team and are eager to connect with you to see how you're doing. We're also dedicating more engineering resources to you to ensure you have a great investment experience.
We want your ideas on what else we can do.
To prove our commitment and thank you for investing with us, we're offering a bonus for new funds transferred to your account by July 15, 2016.1 The more you invest, the bigger the bonus you could receive.

$5,000 - $9,999 - bonus $100
$10,000 - $24,999 - bonus $200
$25,000 - $49,000 - bonus $500
$50,000 - $99,000 - bonus $1,000
$100,000+ - bonus $2,000
In the meantime, keep your ideas and questions coming. Our Investor Services team is here to help.
Scott Sanborn
Lending Club President & Acting CEO
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Email from Lending Club
#1: June 01, 2016, 11:00:00 PM
I did not receive this email. Do you think they are sending out based on $ amount invested? What type of account did you have?
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Email from Lending Club
#4: June 01, 2016, 11:00:00 PM
I got it, too.  Could easily have been triggered by my changed behavior.  I have turned off all 5 of my daily auto-investing cron jobs, which invest in all 4 accounts.  Haven't invested for at least a week.
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Email from Lending Club
#8: June 01, 2016, 11:00:00 PM
I've stood by LC throughout this whole ordeal, and kept reinvesting all payouts.

I'll be pretty disappointed if I don't receive the offer. Not a good way to reward the ones that supported LC through the past few weeks.
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Email from Lending Club
#10: June 02, 2016, 11:00:00 PM
I believe this offer is for non-IRA accounts, so if that is the only account you have that could explain why you did not see the offer.   

I am sure if you were about to transfer $5000 to your LC account to invest, you can call them and ask about the bonus. But I suspect they already emailed the folks most likely to do so. For example, if you pulled $5000 out in the last month, you may not be on the DL. 

I am definitely thinking about this one.
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Email from Lending Club
#12: June 02, 2016, 11:00:00 PM
I received this email yesterday as well. Here are my thoughts:

1. This offer is certainly better than a sharp stick in the eye, but it essentially skirts the issue that, I believe, is top-of-mind for most retail investors. I actually quite appreciate that there is some sort of enticement to lure back skittish retail borrowers. It shows that management is actively trying to reach out. What's more, adding 2% to my yield is nothing to sneeze at. But at the end of the day, like many on this forum have pointed out, the offer doesn't address the fundamental issue of no BRV being in place for the retail investor. When I analyze my own financial situation, this is still the overarching concern which prevents me from returning to buying loans. As great as this 2% may be, the "unknown unknowns" (it's the uncertainty, stupid) of what my notes would look like if things get ugly fast outweighs a 2% bump in yield. That is how I see it, anyway. Others may feel different, or have a different risk tolerance.

2. While this may not lure me back to reinvesting, let alone incite me to deploy large amounts of new capital, hopefully this carrot is sufficient for enough retail investors to prevent a massive funding shortfall that creates a further self-defeating crisis of confidence. Let's face it, what we're essentially dealing with is a classic run on the bank, or crisis of confidence. I don't think there are any major systemic issues (although I could be wrong) that suddenly went into play a few weeks ago. If all institutional investors and retail investors suddenly decided to start reinvesting all at once, then the RL affair and all the drama that it entails would be a blip on the radar screen. What we are dealing with is a crisis of confidence. The FDIC is in place to prevent bank runs. A BRV is the type of vehicle that is needed to prevent a crisis of confidence for some segment of retail investors. When all is said and done, this RL debacle could turn out to be a blessing in disguise in that it awakens the board and upper-management to the need to think long and hard about funding sources in crises situations. When Mario Draghi promised to "do whatever it takes" to stop the Euro-zone crisis, it had the intended effect of stopping the panic and prevented the ECB from doing a lot more. Mr. Sanborn needs to heed lessons from the past 8-9 years and come out with what is effectively bazooka, not just an enticement to pad returns. In a panic, investors are more interested in return of investment than return on investment.

3. I don't see what is happening behind the scenes. I don't know what the temperature is among other retail  investors, or what funding shortfalls may, or may not, exist. It may very well be that many retail investors are somewhat oblivious to what has transpired in the past few weeks and are reinvesting as if nothing ever happened. I may be a minority voice, I don't know for sure. If this is the case, then the 2% enticement may essentially do the trick. LC has all the data on their investors and they can measure the impact of their communication and offer. If this is enough to right the ship, then maybe LC is right to focus on the silent majority and not the vocal minority. If, however, this forum is a proxy for a wider cross-section of LC investors, LC may need to rethink their approach to shoring up confidence.
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Email from Lending Club
#13: June 02, 2016, 11:00:00 PM
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Email from Lending Club
#14: June 02, 2016, 11:00:00 PM

1. about BRV, if prosper has it then go there. I am not sure there is any reason to start BRV at LC. If you want a burger, go to the burger joint.

2. This is not a run on the bank (especially if you don't think there are any systemic issues). Like stocks, these are not FDIC insured and everyone was fully aware of the risk when investing so no need to change the rules in the middle of the game. You want FDIC insurance go to the FDIC insured joint.

3. All LC needs is more retail investment. This is our queue to step-in the game and show them what we are made of. Do we believe in the p2p model or not? Do we believe in it only if it is insured against loss? Do we believe it whether there is a 2% bonus or not?

4. I don't think retail investors should be second class to institutional investors. Institutional investors have bank charters and can lend money out themselves, but they are too lazy to do it can conveniently mooch off LC. They get the tax breaks we don't on the same returns. Why should we be the second class citizens here? We are the p2p, we are the ones paying the premiums (taxes) to use this. We are the ones picking the loans 1 by 1 versus using the robots. We are the one sitting down at the pc every 4 hours to invest in loans. We are the ones getting the lower class loans because we are not using the API to suck up the loans faster than you can say go. We are the foundation to this whole thing. Without retail, by definition there is no p2p.
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