Jack has been involved with peer to peer lending since 2008, nearly since it began. He has sizable accounts in both Lending Club and Prosper - over $200,000 total. An experienced investor in his late forties, Jack probably represents a more common investor in peer to peer lending than myself.
This interview was different. While still considerate of the past struggles, Vermut spoke candidly on Prosper's turnaround being complete, how the recently crossed threshold of $1 billion in issued loans is only the beginning of Prosper's overarching goal to transform American finance.
Each quarter I post the current state of my peer to peer lending accounts. I am a lender who enjoys maximizing my return through fine-filtering available loans with the highest interest available.
As you can see in the following table, I continue to celebrate positive returns on both Lending Club and Prosper.
Today marks the completion of my eight month study: The Liquidity Project. Every week, from July 2013 through January 2014, I gradually discounted my taxable Lending Club account until it was completely sold off. The resulting data paints an extremely interesting picture of the secondary economy that exists in this backsection of the Lending Club website.
Did you know that you could get money in your bank account using just your signature? It’s true. By simply signing your name on an application, you have the ability to get access to all sorts of credit: from credit cards to 5-year loans.
In our last edition of Reader Stories, we met Huntly from New York City. For this one we get to meet Logan, an engineer from Colorado. The continued purpose of Reader Stories is to add a bit of emotion and humanity to this entire online-only enterprise, helping to warm the nation to peer to peer lending. Also, I do enjoy sending bags of gourmet Stumptown coffee in the mail.
Peer to peer lending has spawned a diverse ecosystem. A growing number of investment advisers, managed funds, and websites have formed that focus exclusively on investing through Lending Club and Prosper. Part of this ecosystem has been the rise of third-party statistics and auto-investing sites. In today’s post I have a prediction to share: third-party auto-investing with Lending Club, as it stands today, is going to be cut off.
If you have remained in the wider peer to peer lending conversation for the past year or so, you have come to see the general picture that is unfolding. On the one side you have the lending companies, Lending Club and Prosper, who have created exchanges that enable a freer flow of capital between investors and borrowers.
Investing with a filter is one of the key ways that we can earn a higher return on Lending Club and Prosper. In today's video we use the NickelSteamroller.com website to create a filter for ourselves from scratch, going on to use it on Lending Club's platform.
Five weeks ago the London-based newspaper Financial Times broke a story that Wells Fargo, one of the largest banks in the world, had issued a memo banning their staff from taking part in Lending Club and Prosper (full article). The key line of the Wells Fargo memo is:
“... peer-to-peer lending is a competitive activity that poses a conflict of interest.”