This last month saw some huge news from the p2plending/marketplace lending world. I thought I would outline some of those stories, their impact and my thoughts on them here.
Story 1: Goldman Sachs enters the business
The New York Times posted a story about the news that huge investment bank Goldman Sachs is getting into online consumer lending. Our friends Peter, Jason, Bo and Ryan at Lend Academy did a nice piece on the coverage as well.
Most banks, investment or commercial, choose to partner Click Here To Continue
Another month has come and gone and there have been some changes to my portfolio that I will go into more detail on further down.This is the monthly report for May where I outline my USD returns on Prosper and Lending Club and my BTC returns which have higher rates and higher defaults.
A reminder, I have 2 loan portfolios on Lending Club; a regular one using my Credit methodology and a High Rate/High Yield portfolio where I use some of my methodologies but actively seek out yield the same way Click Here To Continue
This past week, I had the pleasure to go to the 2nd Annual FinTech Global Expo (produced by Coastal Shows) in San Diego and sit on the Bitcoin panel entitled 'Beyond Bitcoin: The Block Chain Technology and its potential business applications'. It was great fun and there was an interesting focus on small business and real estate based lending platforms. There was some great new updated information there so I thought I'd share some of what I learned.
FinTech and Crowdfunding is truly Global
Due Click Here To Continue
I have been derelict in my monthly reporting but I'm back.
A couple new developments this month including:
April saw the initiation of my Lending Club only High Rate/High Yield Portfolio. The purpose here is to use the same credit techniques I use in my regular portfolio to reduce risk but then seek the highest yields possible. This is to match the goal of many p2p lending investors who are high yield seekers.
Which type of p2p investor are you? Here is my post on this from Click Here To Continue
By now, most of you BitLendingClub lenders have gotten the email where BLC talks about adjustments made to their credit rating system and access to their Stats page.
The initiation of the credit rating system has been a big help in sorting through loans on the platform and is an attempt to be more proactive in reducing defaulters. Unlike Jam, whose rating system is based almost entirely on the amount of information they have collected on you as borrower, BLC is attempting to do actual credit analysis Click Here To Continue
Lending in Bitcoin is very different than lending your USD or GBP out for lots of reasons. One of the most obvious differences is the newness of the platforms themselves and how their recordkeeping, or lack thereof, affects us as investors.
I have 10 Rules that I use to lend my coin profitable and this is Rule #9: Keep Excellent Records.
Unlike Prosper and Lending Club, who have very good to excellent recordkeeping, you will get NO help with record keeping from any of these platforms. You have Click Here To Continue
The LendIt USA conference, commonly called LendIt 2015, is taking place in NYC closing today. If you couldn't go, here are some cool highlights from the conference
Partnership between On Deck and Prosper : the strategic referral relationship between the two firms, since On Deck does business loans and Prosper does consumer loans, continues and gets more formalized into more of a partnership with joint marketing and future business line long term strategy together.
Lending Club partners Click Here To Continue
The signs of early spring are here and they include warmer weather, pollen and hay fever, putting the winter coats away, and TAXES.
Bitcoin investors and lenders, especially those in the US, have some quirky laws that they have to deal with in order to stay compliant. As I talked about in a previous post, Bitcoin is taxed like property in the US. This means that we have to do the same things with Bitcoin that we do with stock and bond investments and we have to track them the same way without Click Here To Continue
One of the fun things about following peer to peer/marketplace lending is that things are always changing. Sometimes they are good changes, sometimes they aren't. Sometimes they are just changes and we can't tell if they are good or bad either in the short or long term. Things are changing even more and faster in the Bitcoin lending market.
BTCJam has made 3 such changes that are worth noting.
5 Currencies Added to Locked Loans
Just like how BitLendingClub (BLC) added the Brazilian Real to Click Here To Continue