February P2P Lending News

Posted 24 February 2016.

February was a busy month in the media for the peer-to-peer lending industry! Here are some of our highlights from the last few weeks.

Local News

Of course, the big news for us this month was reaching $200 million in loans funded on the marketplace - after just 17 months of operation, it's a monumental achievement for our community, and, we think, for the industry as a whole. You can check out the press release announcing the achievement here.

Crowdfund insider wrote a brief feature discussing our preparations for launch in Australia. Their highlights of our key focuses and recent success is available on their website.

The NBR also wrote a feature on us this month, off the back of our latest funding round, including a brief interview with our Founder and Co-CEO, Neil Roberts. The full article can be found here.

Through the month February there's been a few other media features on us - you can find the full list of articles over on our media page.

International News

The Peer-to-Peer Lendscape

The P2P/Marketplace lending ecosystem is growing rapidly around the world. With so different participants and a spectrum of alternative products and services, it’s becoming increasingly complex. Thankfully, the Orchard team has updated their famed “Lendscape” to help bring clarity to the evolving industry. Can you spot Harmoney? *Hint* Look for the old ambigram logo. Click the image for a full size view.

Orchard Lendscape

P2P Lenders Stay Offline

In a guest post on Lend Academy, Mark Prosser, Co-Founder of FitBiz loans talks about how online lenders are more focused on offline marketing strategies (i.e. direct mail and partnerships) over digital strategies (i.e. google ads, SEO). The reason is simple, targeting. Offline marketing allows better targeting to the type of high quality borrowers that P2P lenders are searching for. This is not to say that there are no successful targeting techniques available through online channels, but relatively speaking, it’s limited.

Partnerships - provide a steady stream of qualified borrowers where someone else has taken care of the filtering. These borrowers are valuable because they are in a “buying” state of mind having already inquired with the third-party about a personal loan.

Direct Mail - allows targeting based on a wide variety of variables, including geographic location, credit history, household income, and more. Credit history is probably the most valuable from the lender’s point of view and the credit bureaus make available a wealth of credit information that can be used to send out targeted direct mail campaigns.

Is Love a Good Investment?

Lending Robot has compiled wedding and engagement data from the two largest originators in the world and they discovered that February is the month when the percentage of loans taken out for wedding expenses is the highest. Here are their findings:

  • Wedding and engagement loans are almost twice as likely to pay off early.
  • Borrowers spend approximately 1.3 months of income on their engagement ring.
  • Engagement loans are much less likely to default compared to the average loan.
  • Wedding loans are almost twice as likely to default than the average P2P loan, but...
  • Wedding loans return 1.45% more than the average loan, while engagement rings return 4.09% more than average.

Upcoming Events

The inaugural AltFi Australasian Summit 2016 is fast approaching! On Monday 29th February 2016 at Jones Bay Wharf in Sydney, Australia, the conference will provide an opportunity to take a deep dive into what is transforming the manner in which money is invested and borrowed, providing a bold new asset class for investors in the process. Our GM of Australia, Ben Taylor, is speaking at the event.