Apparently LendingClub has too many listings for their available lender dollars. This is not surprising, with any emerging market there will be imbalances. They are taking positive steps to address the problem in both the short term and long term. The source of this imbalance seems to be an influx of borrowers that have joined the site after LendingClub went national.
In the short term, as I reported last week they are offering a 5% bonus for lending at least $5K before 2/3/2008.
Today, they announced a longer term solution for managing the problem of marketplace inequity: adjusting the base rate 50 basis points. I like to see that they are open to changing their fixed rates to match market conditions. This is a much more permanent solution managing imbalances. It is similar to the fed can setting the fed funds rate to control the money supply.
This tool can also be used when the long term lender ROI is a more stable quantity; thereby, ensuring an attractive risk free rate. Fred93 (one of the top 10 lenders by volume on Prosper) dissects the Lending Club lender ROI calculation.
Anyone wishing to try LendingClub should be sure to get a $25 signup bonus by using this link to signup: Signup via this link and receive a $25 startup bonus
Related posts:- LendingClub Advertisment on RateLadder — $25-$50 signup Bonus I would like to thank Lending Club for their advertisement on Rate Ladder and P2P No Bank. You may notice the new banner on the top...
- LendingClub Goes National — Lending Club Data LendingClub CEO Renaud Laplanche announced today via the LendingClub Blog that Lending Club is Going National. Lending Club launched on Facebook just 6 months ago...
- Lend $5000 on Lending Club Get $250 or More LendingClub is running a promotion where lenders that lend at least $5000 by February 3rd, 2008 will receive a 5% bonus on the amount that...
- Reduced Required Rates by 0.5% for All Standing Orders with Rates Greater Than 15% After watching for several days with no activity I was getting anise. So I decided to reduced required rates by 0.5% for all standing orders...
- Prosper.com Account Value at Blog Starting Point 12/27/06 $2800 in Principle Loaned Avg Interest Rate 15.76% Realized Net Gain/Loss: $32.72...
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1 comment so far ↓
Going national was a big move on their part. It shows pent up demand. I’d like to see Prosper go national as well, but not if they have to make some deal with a bank that waters down the P2P nature of their lending.
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