P2P-Banking.com

Tuesday I wrote about Zopa's plans for Zopa listings. Now a preview of how the new Zopa listings will look is available. With this feature Zopa will take the step from anonymous borrowers to a more personal look with borrower listings and profiles. To create a listing borrowers will have a credit grade of at least C.

I looked at the preview today and found the resemblance to Prosper.com layout striking in many points. The listing overview will look like this:

The loan listing itself has photos, a loan details section, a personal profile section and borrower information. Furthermore it will have a Questions and Answers Section allowing the lender to ask questions. Looking at the following example the forecast graph in the upper right looks exactly like the same feature Prosper offers:

The 8 page preview description gives more example screens of Zopa listings, which Zopa says it will introduce within the next months.

Lender feedback (which is limited so far) has been mixed.

With this changes, should the Prosper & Zopa merger that Jeff & Heather wish (it is really only wishful thinking!) ever happen, then at least the layout question seems decided now.

Social lending service Kiva has refined its risk assessment for participating MRIs (microfinance institutions). The changes and the mechanism are described here. Risks for Kiva lenders include Entrepreneur Risk, Fieldpartner Risk and County Risk. 

So far the default rate for Kiva has been 0.17% on a loan volume of $9.965.000 (4.4% of loans are one month late). When compared to Prosper.com default rates, that is an extremly good result. So far the MRI on Kiva with the worst performance is REDC Bulgaria, followed by an MRI that organizes loans to people in Uganda, Kenya and Tanzania.

Another interesting figure: The average time a listing is online at Kiva.org until it is fully funded is 1.24 days.

So far all my Kiva loans are repaying on schedule.

"Prosper on Zopa" - "but better"

That is how the new Sales & Product manager Tanya Cordrey of Zopa described the planned Zopa Listings yesterday in a Zopa Chat. Quote: "It is the ability for borrowers to post listings and it gives lenders the opportunity to lend choose individuals"
Zopa plans to get this feature live next month.

The question about the chance for a secondary market was answered by that there is not enough volume yet (maybe next year). The chat was attended by many Zopa employees including the CEO. The transcript is available.

No despite the sound of the title this is no joke. With at little as $4 you can help the quest to remove landmine. The herorat.org project trains rats to search landmines because this is a cheap and reliable way to locate landmines with little risk to the rats. While the site has a cartoon appearance this is NOT a game - read the Press centre for media coverage (e.g. CNN). I donated. 

Note: Most of the following is an observation of lenders opinions voiced in the Prosper forums (with sources given). The opinions voiced in the cited threads are the opinions of the individual lenders who posted them.

Looking into the lender section at the Prosper.com forums part of the posting lenders seem to be in open rebellion. Titles of threads from the last two days include "FLASH:Prosper bans $100.000 lender", "Prosper Mng. Living Under a Rock", "Shooting the Messenger", "What happens if Prosper goes under?", "I am done lending on Prosper", "Hello Prosper Moderator", "Lender's WHO are DONE with Prosper", "My letter to Prosper", "Open letter to John Witchel" 

Topics include lack of communication from prosper, failure to adress process problems, banning lenders, closing threads, … .

Posts call for "Class Action Lawsuit", informing Venture Capital firms who funded Prosper about the situation as the lenders posting see it and the call for withrawing funds.

One main cause for the unrest are the low ROIs large long term lenders are experiencing. This post says there are 203 lenders which have loans over 6 month old and more the 25K invested. For these the post says the average estimated ROI is 1.91%.

The result is that some long time lenders churn Prosper.com and stopped investing, while new lenders continue to pour in money.

As the following chart shows the count of lenders who have bid within the last 30 days stalls since April. 

(Source)

A few lenders now express their very legative opinion on Prosper prominently in their signature in every post they make in the Prosper forums. Example

As lenders have started to make fun of Prosper employees or using avatars to create the appearance of beeing a prosper moderator without any apparent reaction of Prosper in their own forums, users start to speculate if Prosper will be forced to close the forums to avoid the negative publicity.

Tom reports that Loanio.com will launch this fall. Loanio has a welcome page up since 3 month, collecting email adresses of those who want to be notified at launch.

In its 10th week of service Lendingclub.com has announced new features:

• Minimum loan amount is now $500 (down from $1000)
• The automatic diversification mechanism LendingMatch can now be used with as little as $500. LendingMatch uses the $500 to build a portfolio of 25 different loans
• claims usability improvements on referral program, that pays $5 for successful invitations
• borrowers in Arizona can use Lendingclub

Browsing the Zopa forums today, I noticed that negative posts by lenders are on the rise. This is quite different from the mostly positive feedback in earlier months.

Lenders are:

• unhappy with bug-fixing progress,
• say there are accounting problems,
• complain about lack of communication (here, too),
• lack of progress in product development in past year.

While the staff in many cases does not immeadiately solve the voiced problems, at least they are much more responsive in the forum compared to the Prosper staff in the Prosper forum.

Some of the complaints may turn out to be misunderstandings. Bear in mind, that only a tiny minority of the Zopa lenders are active posters in the Zopa forum, therefore it is quite possible that a fast majority of Zopa's lenders is still very satisfied with the service.

Users suspect problems may have risen, because Zopa stuff could be tied up with issues concerning US launch.

Video on the Globefunder.com business model.

Part 1:

Part 2:

Globefunder team says it is aiming for millions of loans requiring full scalability of system.

Reuters has a video on German p2p lending site Smava.de. This is the first video I saw that's in english language. Features Alexander Artope, co-founder and CEO of Smava.