You may have heard of the Lending Club shakeup in their executive team last week. The shakeup came from the fraud the former executives perpetrated on a small subset of loans. In response to these actions, the new CEO Scott Sanborn wrote a letter to larger investors about what happened, what they are doing, and how they are looking at and managing data in the future.
I was able to get a copy of this letter and short presentation and have it available for you to read. You can download it right Click Here To Continue
Lending Club CEO Renaud Laplanche, generally regarded as the face of marketplace/p2p lending has resigned his position at Lending Club.
The resignation is based on the discovery that $22 million worth of loans were knowingly sold to an investor when the loans did NOT meet that investors buying criteria. It's yet to be seen if additional executives or employees will be let go or not although the CNBC articles says 3 other senior managers were let go too.
It should be noted that the loans were Click Here To Continue
To say that I have learned some things from this Auto Invest experiment is quite the understatement. So far Loanbase is really up to the task. I'm going to have to launch my Bitbond program soon based on these results. Let's look at the results in more detail for April after a profitable March.
Last month I did a loan by loan assessment, which you can see on my March report here. Going forward I will be tracking total ROI (return on investment) or ROIC (return on invested capital).
Let's Click Here To Continue
This week the largest conference in the peer to peer/marketplace lending industry, LendIt 2016, is going on. In the days leading up to the conference, I got the chance to speak to lots of movers and shakers including platform operators. One of the most interesting lending platforms out there is a new area for p2p lending but one of the oldest forms of financing, POS financing or financing at the Point of Sale.
How many of you are old enough to remember when stores used to do lay away? The Click Here To Continue
So far, I can honestly say I have one success and one failure on my AutoInvest program. Let's start with the failure first.
This isnt exactly my fault but my adding Bitcoin to my BTCJam account happened to almost exactly coincide with their announcement that they are exiting the US in terms of lenders and borrowers. Jam has said its for 2 reasons: regulatory climate in the US and their founding as an emerging market (Brazil first) lending platform to give options to those in these emerging markets Click Here To Continue
There's lots of news in FinTech so let's look at some of the bigger stories from the last week.
Is there trouble with funding for p2p loans?
A Bloomberg article from earlier this week discusses how investor service Moody's is downgrading a portion of a group of bonds issued backed by loans on the Prosper platform.
Impact: For you and me this seems like it would not be that impactful as this is very large institutional high finance stuff. However, the velocity of money, how fast money moves, Click Here To Continue
I'm not done setting up all my AutoInvest stuff yet, however 2 of my 3 accounts are set up: BTCJam and Loanbase. I thought I would show a screenshot from each and let the picture tell the story.
I started with BTCJam so I thought I would show theirs first.
What you don't see here are two things: 1) the term I selected caps out at 6 months so no 12 month loans for me and 2) No loans selected.
There are only 13 active loans listed and most of them are 1 year loans. The resulting Click Here To Continue
The AutoInvest experiment continues. My first stop, as I documented already in AutoInvest Step 1 was BTCJam. Now it's time for the 2nd stop, Loanbase.
I've made no secret of the fact that while all the platforms do things well and all of them have shortcomings that Loanbase is my favorite for a combination of reasons. These reasons include things like user interface and better searching/filtering features for me to figure out which loans I want to invest in with my coin.
But this is AutoInvest. Click Here To Continue
As I mentioned in this previous post, I am starting on AutoInvest on the big 3 Bitcoin lending platforms. In order to measure the returns and start the experiment, I have to actually start the experiment so I'm starting with what is still the largest Bitcoin lending platform, BTCJam.
Jam makes AutoInvesting pretty easy. First, where do you find it?
Right up at the top next to the Dashboard, there you go. Nice and easy. After clicking on that, I see this
Note that they say it is in Click Here To Continue
When people find out I have some expertise in Bitcoin based lending, one of the most common questions I get is about the AutoInvest feature offered by the big 3 lenders.
For infrequent readers, the big 3 Bitcoin lenders are BTCJam, Loanbase and Bitbond. They are the Big 3 because they have gotten outside funding and enough funding and legal advice to ensure they are at least legally compliant with Bitcoin in their home jurisdictions. All other Bitcoin peer lenders (other than exchanges) are Click Here To Continue