Category: Social Lending

Social Lending3 Comments

Excellent Debate on P2P Lending across Blogs

Colin Henderson

If you are interested, there is an excellent debate on P2P Lending going on over a few blogs now. The general theme is whether P2P Lending (otherwise known as Social Lending) will make a difference to Banks. It began here with this post at Zopa. The problem is that unlike so many other far healthier industries, the banks have no effective competition. Microsoft is kept in check by Apple and increasingly Google. Warner, EMI and Sony are battling it out with the digital download phenomena. Tesco has to watch out for Sainsburys, M&S and Waitrose. Even the BBC has to … Continue reading Excellent Debate on P2P Lending across Blogs

Social Lending

LendingClub announces some new trend results

Colin Henderson

Lending Club are announcing today some new numbers that show they are gaining traction since their relaunch following SEC approval.  There is no-one else to compare them to now, but the trend is positive, and getting more so all the time. LendingClub 53% growth in quarterly loan originations, from $5,374,850 in Q4 2008 to $8,239,950 in Q1 2009 From January 1st  to May 31st 2009: 60% growth in total loans issued by Lending Club, from $25M to $40M 70% growth in total Lending Club membership from 82,000 to 140,000 72% growth in loan applications, from $212M to $365M The average … Continue reading LendingClub announces some new trend results

Social Lending1 Comment

Pertuity Direct introduce a differentiated model to US P2P lending

Colin Henderson

I had the opportunity to speak today with the good folks at Pertuity Direct, Kim Muhota, Lisa Lough. and Independent Trustee Charlie Schliebs (details below).  These are interesting times in P2P Lending and financial services in general so its refreshing to chat with some people who have a model, are live and keen to make a difference with their differentiated model. Kim came up with the idea several years ago while at business school and left PNC to form the company.  He brought a dual focus on getting the regulatory package right alongside a smooth and simple customer experience.  He … Continue reading Pertuity Direct introduce a differentiated model to US P2P lending

Business Models, Open Finance, Open Source Banking, P2P Lending, Social Lending4 Comments

Comment on “Beyond the age of leverage: new banks must arise” | Niall Ferguson

Colin Henderson

Niall Ferguson nails the ultimate irony in the world today.  Every government is set on increasing debt as a means to solve the current crisis, however the reality is that they are potentially sending good money after bad, and not addressing the core issue. (emphasis mine) Beyond the age of leverage: new banks must arise | ft.com Call it the Great Repression. The reality being repressed is that the western world is suffering a crisis of excessive indebtedness. Many governments are too highly leveraged, as are many corporations. More importantly, households are groaning under unprecedented debt burdens. Worst of all … Continue reading Comment on “Beyond the age of leverage: new banks must arise” | Niall Ferguson

Social Lending, Uncategorized

Prosper issues their revised S-1/A – December 5th, 2008

Colin Henderson

Prosper Marketplace Inc. have issued their new S-1/A seeking approval from the SEC. S-1/A At first glance it is similar to the first one, but includes a primary (loans originated on Prosper) and a secondary market (lenders seeking liquidity of earlier investments) We will issue the Notes in series. Each series will correspond to a single consumer loan originated through our person-to-person online credit auction platform or a previously-funded single consumer loan offered for sale on our platform by one of our financial institution members. In this prospectus, we refer to these consumer loans generally as “borrower loans” and we … Continue reading Prosper issues their revised S-1/A – December 5th, 2008

Innovation, Social Lending5 Comments

Social Lending is maturing | web 2.0 meets reality

Colin Henderson

The recent headlines are getting much coverage in blogs and lender forums.  Words such as “troubles”, “suspend”  and “halt operations” all characterise the situation as dire for p2p lending. Loanio suspends operations Prosper in violation of SEC; Loanio to halt operations I would take a different view [disclaimer;  I am active with CommunityLend, a social lending company in Canada]. Social Lending / P2P lending is a disruptive influence to traditional financial services and that is a good thing.  Disruption infrequently comes from within – existing participants within an industry have little incentive or desire to promote radical change.  Such change … Continue reading Social Lending is maturing | web 2.0 meets reality

Canada, Social Lending, US

The promise of social lending – one that stretches the known financial framework

Colin Henderson

This has been a weird week for social lending, but an email conversation with the always clear thinking Ron brought it into perspective.  Ron asked if the new model is in fact simpler – brilliant question. New Approach Puts Secondary Market to Work in P-to-P | American Banker [note:  access to full story requires registration] Edward Woods, a senior analyst for Celent, a Boston market research unit of Marsh & McLennan Cos., said the model Lending Club and Prosper have chosen is the one most likely to thrive as this market matures. “You’ll see fewer experiments” along the lines of … Continue reading The promise of social lending – one that stretches the known financial framework

Social Lending10 Comments

The nature of social capital and trust in banking and financial services

Colin Henderson

I have enjoyed a re-read of Bowling Alone during a recent vacation.  Its a fascinating book written very academically, so not an easy read.  Tons of statistics.  However the concepts that it explores are relevant and interesting for Banks.  For me it helped to sort out differences between Banks and others, and the nature of trust.  It helped me better understand social capital. What is especially interesting and relevant for our times is that it was written in 1999.  This book predated the dot com crash, and predated the rise of social networks, yet it nailed the much of the … Continue reading The nature of social capital and trust in banking and financial services

Business Models, Innovation, Social Lending3 Comments

Platform vs market logic, applied to P2P Lending

Colin Henderson

Back from vacation, and thinking about all kinds of stuff.  Long post on Social Capital coming, but meantime, and kind of related <in my mind> Umair does a nice job of discussing the merits of platforms and markets.  It is an important distinction, and his final quote here explains what caught my eye. What Apple Knows That Facebook Doesn’t – Umair Haque This conclusion also helps us answer another critical question on the minds of today’s investors, entrepreneurs, and would-be revolutionaries: when will today’s crop of startups start making serious cash? The answer: when they shift from platform logic to … Continue reading Platform vs market logic, applied to P2P Lending

Social Lending

LendingClub file revised S-1; suggests progress being made

Colin Henderson

LendingClub has filed a revised S-1 with the SEC. This suggests progress, and will be as a result of comments on the original S-1. Comments from the SEC are not public until final approvals. I need to review the copy to figure out the changes and updates. More tomorrow. http://www.sec.gov As filed with the Securities and Exchange Commission on August 1, 2008 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 1 to Form S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 LendingClub Corporation Continue reading LendingClub file revised S-1; suggests progress being made