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P2P and Social Lending: Global Trends
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Q & A with NoteX360 - Execution Services for the Alternative Lending Market

Q & A with NoteX360 - Execution Services for the Alternative Lending Market | P2P and Social Lending: Global Trends | Scoop.it
I reached out to Simon Hermiz who is the co-founder and CEO of NoteX360 to learn more about their offerings.   The easiest way to understand NoteX360 is that they are an aggregator and execution provider for the alternative lending market. Thus, family offices and institutional investors come to them with credit models and filter strategies. NoteX360 …
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Debt To Income

Debt To Income | P2P and Social Lending: Global Trends | Scoop.it
Debt to Income (DTI) is a metric that many active investors in Marketplace
Lending are familiar with and potentially use in their investment
strategies.  It represents the total amount of debt payments the borrower
owes each month excluding mortgage (e.g. credit cards, student loans, car
loans) divided by the stated monthly income.  
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ISA Limit Raised to £15,000

ISA Limit Raised to £15,000 | P2P and Social Lending: Global Trends | Scoop.it
MARKET REACTION: Chancellor George Osborne has delivered the Budget 2014, and it contained great news for savers and investors (Peer to Peer Lending in ISAs

The new £15,000 ISA will allow peer-to-peer (P2P) lending to be included in...
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P2P lending comes to Poland

If you arent familiar with p2p lending, you might like to have a look at the link.
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Australians go for a slice of $27 billion bank profits and a better deal

Australians go for a slice of $27 billion bank profits and a better deal | P2P and Social Lending: Global Trends | Scoop.it
Australians go for a slice of $27 billion bank profits and a better deal PRWire (press release) P2P lending has grown into a multi-billion dollar industry around the world, fuelled by people who are tired of the power of the big institutions and...
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The Rise of China's Internet-based Financing

The Rise of China's Internet-based Financing | P2P and Social Lending: Global Trends | Scoop.it
Similar to the first online Internet-based lending sites that emerged in the West a decade ago, P2P sites charge a small transaction fee to match people wanting to invest money with those seeking to borrow cash.
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Lending Club's Startup Vibe Creates Multi-Billion Giant

Lending Club's Startup Vibe Creates Multi-Billion Giant | P2P and Social Lending: Global Trends | Scoop.it
Groucho Marx said he refused to be a member of any club that would accept him, but he never heard of Lending Club.
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International P2P - Loan Volumes May 2014

International P2P - Loan Volumes May 2014 | P2P and Social Lending: Global Trends | Scoop.it
Business Insider
International P2P Lending Services - Loan Volumes May 2014
P2P-Banking.com
Developments in May were mixed when compared to p2p lending volumes in April. I added one new service to the table.
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Regulator Ready to Roll out New Rules for P2P Lending, Sources Say -

Regulator Ready to Roll out New Rules for P2P Lending, Sources Say - | P2P and Social Lending: Global Trends | Scoop.it
Discussions over new regulations focused on giving P2P lending services enough room to work without breaking existing laws, one company's boss says (Regulator Ready to Roll out New Rules for P2P Lending http://t.co/cAnwKkeX0J)...
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Words of Wisdom from Prosper’s Ron Suber: The Key to P2P is “EAU”

Last night we had the pleasure of hosting Orchard Platform’s marketplace lending monthly meetup at the Pave office, where President of Prosper, Ron Suber, spoke about the peer-to-peer landscape and how the industry is developing.  Prosper, a leader in market lending, is a platform that connects people who need money with those who have money to invest. The company has done exceedingly well, having originated more than $1 billion in total loans on the website. In a time when Millennials are shying away from banks and investors are searching for yield, the peer-to-peer industry is well positioned to become the financial solution for a $1 trillion total addressable market. Rather than new entrants to the industry serving as competition, marketplace lending’s main hurdle is something Suber calls “EAU” – education, awareness, and understanding for borrowers.  We’ve reached a point, Suber says, where banks are more likely to issue high interest rate credit cards. Right now, consumers are not just swiping to handle daily transactions but relying on plastic to borrow money for large expenses like home improvement or starting a business, where a low interest personal loan would be more appropriate and more affordable. Since 2008’s Great Recession, banks have made it increasingly more difficult for borrowers to meet personal loan eligibility requirements, leaving consumers with nowhere to turn but their credit cards.  This underscores the great need for personal finance education, promoting awareness of alternative funding options, and helping consumers understand how to know what they can reasonably afford and how they can find competitive rates. The Q&A following Suber’s talk touched three important themes in peer-to-peer lending worth highlighting here: education, industry risks, and growth of the market. Educating Borrowers It’s our job as leaders in the peer to peer landscape to help the younger generations understand why they don’t need a bank to borrow, pay off credit card debt, or refinance debt. Instead, there are now lenders — a good portion of whom are real people — who care about investing in other people, so banks are no longer required to act the middle man. Risks to the Industry Ron duly pointed out that there are many risks associated with a nascent market, ranging from:



the possibility of higher unemployment rates 


bad actors in the industry


a higher interest rate environment


a resistance to technological advancements


or, the possibility that lenders will find another shiny object to invest in




However, two specific topics to focus on include the importance of a solid underwriting approach and compliance with regulations. 


1/ Underwriting It’s incredibly important and necessary to validate and verify borrowers in addition to having a sound credit and risk policy in place. This, of course, requires a good servicer to provide further comfort to investors. If the industry doesn’t place a high value on validating and verifying borrowers, investors go away. 2/ Regulations Ensuring compliance and dialogue with regulators is key. Both Prosper and Pave  maintain a regular dialogue with the CFPB, who has reacted positively to alternative financing options that offer consumers lower rates, help people get credit, and generally stimulate the economy.


Growth Recent reports on marketplace lending discuss the great potential for growth in the space, an essential factor for new entrants and leaders alike.  Suber touched upon a few strategies deployed at Prosper that have helped fuel the company’s phenomenal growth over the last year — from originating $9m in January 2013 to over $100m per month as of April 2014. 1/ Direct Mail While Suber didn’t share the Prosper Secret Sauce, he did hint at the 12 levers Prosper has at its disposal, including direct mail (they sent 4.4 million pieces of physical mail last month!).   2/ Digital Marketing Digital marketing (SEO, paid, display, social, affiliate advertising) has also been an effective strategy in reaching borrowers, as well as partnerships and a clear client marketing strategy to find and educate borrowers. 3/ Retail Investors Another key part of the p2p ecosystem is the retail investor. When Prosper first started, it just focused on the retail market. Turning to institutional investments helped spur growth, but Prosper is returning once again to the retail investor as an important part of diversifying the lending community. In the end, the most important takeaway for accomplishing “EAU” ultimately requires a degree of harmony across peer-to-peer platforms, because the competition is not with one another but with providing education, building awareness, and establishing a broad understanding of the benefits to marketplace lending.  Event Photos


Pave co-founder Oren Bass with Ron Suber and Lend Academy's Peter Renton





Networking reception following the discussion
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Be wary - the P2P hedge funds are coming

Be wary - the  P2P hedge funds are coming | P2P and Social Lending: Global Trends | Scoop.it
Over the weekend I read about a company called P2P Global. Spun out of a hedge fund, it has created an investment trust, with a main purpose of investing in p2p platforms in Europe and USA.
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P2P to $USD1tn p.a. by 2025 ...

P2P to $USD1tn p.a. by 2025 ... | P2P and Social Lending: Global Trends | Scoop.it
The first is the almost phenomenal growth in P2P lending in the UK from 2012 £381 million to 2013 £843 million. Certainly a strong indicator of growing acceptance at least in that market, but understandably seen as a trend ...
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A Visit With Assetz Capital - P2P

A Visit With Assetz Capital - P2P | P2P and Social Lending: Global Trends | Scoop.it
A Visit With Assetz Capital
P2P-Banking.com
Assetz Capital does p2p lending to businesses secured by assets – mostly property.
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Creating a new asset class of personal loans — with Lending Club’s Scott Sanborn

Creating a new asset class of personal loans — with Lending Club’s Scott Sanborn | P2P and Social Lending: Global Trends | Scoop.it
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INSIDE INTERVIEW WITH MATT SYMONS OF SOCIETYONE

INSIDE INTERVIEW WITH MATT SYMONS OF SOCIETYONE | P2P and Social Lending: Global Trends | Scoop.it
@msymons,co-founder of @mysocietyone talks p2p lending, collaborative economy and finance, +more! http://t.co/bQrPhw1hxk
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Is peer-to-peer (P2P) lending an efficient way to support microfinance?

Is peer-to-peer (P2P) lending an efficient way to support microfinance? | P2P and Social Lending: Global Trends | Scoop.it
Peer-to-peer (P2P) micro-lending platforms, such as lendwithcare, have become a popular method of supporting small businesses in developing countries. Local microfinance institutions (MFIs) select borrowers and appraise ...
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Are The Banks About To Gobble Up Peer-to-Peer Lenders?

Are The Banks About To Gobble Up Peer-to-Peer Lenders? | P2P and Social Lending: Global Trends | Scoop.it
The financial services establishment is showing a keen interest in peer-to-peer lenders (The structural change due to #FintTech #P2P lending services drives #banks to either innovate or buy http://t.co/aznvWkvTD9...
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Excluvsive: CEO Renaud Laplanche on Lending Club's IPO

Excluvsive: CEO Renaud Laplanche on Lending Club's IPO | P2P and Social Lending: Global Trends | Scoop.it
Lending Club's CEO Renaud Laplanche reflects on his company's coming IPO and what it means for the future of American finance.
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Is Peer-to-Peer Lending Safe? - NASDAQ

Is Peer-to-Peer Lending Safe? - NASDAQ | P2P and Social Lending: Global Trends | Scoop.it
Is Peer-to-Peer Lending Safe?
NASDAQ
Peer-to-peer lending, or P2P lending, took off in the mid-2000s at a time when many borrowers were growing frustrated with mainstream financial institutions' dominance of the loan process.
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P2P lender seeks new investors to fund growth

P2P lender seeks new investors to fund growth | P2P and Social Lending: Global Trends | Scoop.it
HNW Lending, the new peer-to-peer alternative lender that provides individual loans of between £60,000 and £1 million to clients against their valuable assets such as classic cars, fine wines, jewellery, yachts and art, is looking for new investors.
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Lendit 2014: Chinese P2P Lending Panel

Chinese P2P Lending Panel at LendIt 2014 (http://lendit.co/), moderated by Drew Mason, of Jade Capital. The panelists are Yihan Feng, of CreditEase; Soul Htite, of DianRong; Dr. Zane Wang,...
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Lending Club teams up with Union Bank as capital floods into online lending -

Lending Club teams up with Union Bank as capital floods into online lending - | P2P and Social Lending: Global Trends | Scoop.it
In a major shift for traditional banking, Union Bank teamed up with Lending Club. In the arrangement, Union Bank will purchase loans made through Lending Club's platform and the companies will work together on new loan products.
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"P2P" Investment Trust Trades on London Stock Exchange

"P2P" Investment Trust Trades on London Stock Exchange | P2P and Social Lending: Global Trends | Scoop.it
"P2P" Investment Trust Trades on London Stock Exchange
Crowdfund Insider
P2P lending has grown dramatically in recent months in both the United Kingdom and the US.
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How Crowdfunding is Disrupting Old Banking

How Crowdfunding is Disrupting Old Banking | P2P and Social Lending: Global Trends | Scoop.it
By Julie Hanna and Reid Hoffman In San Francisco, Teresa Goines is breaking down deeply entrenched cycles of poverty and crime, one bowl of peanut butter stew at a time.
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SoftBank gets in on China’s P2P lending craze with $10 million investment in Edai

SoftBank gets in on China’s P2P lending craze with $10 million investment in Edai | P2P and Social Lending: Global Trends | Scoop.it
There’s no shortage of peer-to-peer lending sites in China, but neither has a distinct market leader emerged. Sina Tech reports Softbank China is getting in on the action with an estimated US$10 mi...
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