Author Topic: Lending robot  (Read 38323 times)

Paisan

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Re: Lending robot
« Reply #15 on: November 19, 2013, 02:47:36 PM »
Interesting idea.  So if one single investor comes in and snatches up 70% of a loan in the first few seconds (possibly without even examining it), everyone else is going to jump on like a pile of football players who tackled the wrong guy. Heheh.   Oh and then it would be possible to use the shopping cart loophole to 'fake out' those using this approach, possibly as a diversion, without it costing a cent since the 70% could be tossed back.  Fun with with robots!

I like the way you think Core!

Emmanuel

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Re: Lending robot
« Reply #16 on: November 19, 2013, 05:07:54 PM »
Question on pricing...

"Only 0.49% of orders submitted. No setup fees, no monthly minimum."

So I get charged for the cost of the orders submitted, not just the notes that get issued? That could mean that if I deposit $450 a month into my Roth IRA that I end up getting charged based on an investment of $800 because of all of the loans that are cancelled or denied before they are issued and I get the money back to re-invest.

Other than that, I'm interested to check this out.

First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

ggnoob1337

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Re: Lending robot
« Reply #17 on: November 19, 2013, 08:34:19 PM »
Question on pricing...

"Only 0.49% of orders submitted. No setup fees, no monthly minimum."

So I get charged for the cost of the orders submitted, not just the notes that get issued? That could mean that if I deposit $450 a month into my Roth IRA that I end up getting charged based on an investment of $800 because of all of the loans that are cancelled or denied before they are issued and I get the money back to re-invest.

Other than that, I'm interested to check this out.

First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

Makes sense, thanks for the reply!

william

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Re: Lending robot
« Reply #18 on: November 24, 2013, 01:06:22 AM »
Interesting... I have multiple LC accounts, will it be possible to create just 1 Lending Robot account or will I have to create a separate one for each LC account I have?

drknexus

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Re: Lending robot
« Reply #19 on: November 24, 2013, 09:47:31 PM »
First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

I guess it might be marketing nonsense driving the urge to advertise .49%.  However, as a potential customer I have to say if you are really targeting, .7% I'd rather that is what you did straight out on completed investment orders.  If you charge based on completed investment then I am paying a known rate going into things that I can compare in a sensible manner rather than an actual cost that will bounce around a bit from time to time (my portfolio isn't big enough than missed orders can be ignored in the noise and averaged out).  Your variable costs for this operation can't be so high that it is important to charge on your potential variable costs by order can they?

Emmanuel

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Re: Lending robot
« Reply #20 on: November 25, 2013, 11:10:43 AM »
Interesting... I have multiple LC accounts, will it be possible to create just 1 Lending Robot account or will I have to create a separate one for each LC account I have?

For the moment being, you will have to create separate accounts, like on LendingClub. We know it's a hindrance, but it doesn't have any impact on LendingRobot cost, since they're only based on the orders amount.

Emmanuel

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Re: Lending robot
« Reply #21 on: November 26, 2013, 08:09:25 PM »
First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

I guess it might be marketing nonsense driving the urge to advertise .49%.  However, as a potential customer I have to say if you are really targeting, .7% I'd rather that is what you did straight out on completed investment orders.  If you charge based on completed investment then I am paying a known rate going into things that I can compare in a sensible manner rather than an actual cost that will bounce around a bit from time to time (my portfolio isn't big enough than missed orders can be ignored in the noise and averaged out).  Your variable costs for this operation can't be so high that it is important to charge on your potential variable costs by order can they?

The reason is only that it's much simpler. Invoicing our service only for invested loans will require to monitor the loan changing in status, and to do additional housekeeping. That being said, your remarks make a lot of sense.

Emmanuel

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Re: Lending robot
« Reply #22 on: December 05, 2013, 06:00:41 PM »
First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

I guess it might be marketing nonsense driving the urge to advertise .49%.  However, as a potential customer I have to say if you are really targeting, .7% I'd rather that is what you did straight out on completed investment orders.  If you charge based on completed investment then I am paying a known rate going into things that I can compare in a sensible manner rather than an actual cost that will bounce around a bit from time to time (my portfolio isn't big enough than missed orders can be ignored in the noise and averaged out).  Your variable costs for this operation can't be so high that it is important to charge on your potential variable costs by order can they?

Starting today, LendingRobot only charges for completed investments. We wait to get the confirmation the loan has been issued before computing our fees. (that are 0.69% of investments... still maybe a slight marketing gimmick ;-)

Inflationhawk

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Re: Lending robot
« Reply #23 on: December 05, 2013, 07:41:22 PM »
Not sure I'll use the service yet, but I think this is a really good decision and shows transparency.  I'm going to try to continue ramping up my investments manually, but if I get in a time crunch I like the option of using your service.

Fred

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Re: Lending robot
« Reply #24 on: December 05, 2013, 10:50:47 PM »
Emmanuel & giladg:

I used to live in Seattle for many years, near Mill Creek / Everett area, so it is nice to see people in this forum from the area.

I welcome new tools like yours to the P2P world.  This is creating a healthy competition, which should be good for the end users.  However, as investors, we owe it ourselves to do our due diligence.  If you read this forum, many of us have been slightly burned with IR recently; and we certainly do not need another healthcare.gov situation.

1. Can you share your high level SLA (Service Level Agreement)? 
 - service availability (99.9% uptime?)
 - notifications during outage
 - bug fixes release (how soon after identified)
 - customer refunds on SLA breaches
 - capacity planning (get new hardware for each 1000 users)

2. Do you plan to provide an interface to the secondary market (FOLIOfn)?

3. Do you still plan to have the 30-second goal after this week's LC stealthy changes?

PeerSocialLending

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Re: Lending robot
« Reply #25 on: December 06, 2013, 01:58:24 PM »
I have reached out to the folks at LendingRobot and will hopefully have something posted on our blog for people to get more information about LendingRobot soon. Stay tuned!
-Ryan
p2p lending blogger @ www.peersociallending.com

giladg

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Re: Lending robot
« Reply #26 on: December 06, 2013, 08:56:58 PM »
Emmanuel & giladg:

I used to live in Seattle for many years, near Mill Creek / Everett area, so it is nice to see people in this forum from the area.

I welcome new tools like yours to the P2P world.  This is creating a healthy competition, which should be good for the end users.  However, as investors, we owe it ourselves to do our due diligence.  If you read this forum, many of us have been slightly burned with IR recently; and we certainly do not need another healthcare.gov situation.

1. Can you share your high level SLA (Service Level Agreement)? 
 - service availability (99.9% uptime?)
 - notifications during outage
 - bug fixes release (how soon after identified)
 - customer refunds on SLA breaches
 - capacity planning (get new hardware for each 1000 users)

2. Do you plan to provide an interface to the secondary market (FOLIOfn)?

3. Do you still plan to have the 30-second goal after this week's LC stealthy changes?

Fred,
These are great questions - I'm glad you brought them up.  I'll need more time to address all of them, but there's one quick point I want to make about SLA: SLA for a service like LendingRobot is different than that of other online services; the notion of "how many nines" (99.9%, 99.99% or 99.999% uptime) is less crucial here; there are 4 times a day a period of approx. 20 seconds that you absolutely want the service to work - that is when new loans are made available; that is how we like to measure ourselves.

I'm happy to say that since the day we started with a limited beta last summer until today, LendingRobot never missed a single investment round. The service was taken down a few times for planned maintenance and upgrades; it lasted a few minutes every time, and was always scheduled not to coincide with an investment round.

skr5e

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Re: Lending robot
« Reply #27 on: December 06, 2013, 10:10:47 PM »
I have a semi-automated setup that I use to get C4-E5 loans reliably, which otherwise sell within 5 seconds of them being posted.
I'll be competing against my own LR account that I just set up with the same filter criteria, should be interesting to see which one of us comes out on top.

Also, I was kind of annoyed that there was a "coupon code" box and I didn't have a code. What's up with that, aren't we among the first "commercial" adopters?



Bohb Daishi

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Re: Lending robot
« Reply #28 on: December 09, 2013, 02:55:14 AM »
2. Do you plan to provide an interface to the secondary market (FOLIOfn)?

I would like to know this as well.
There are three ways to make a living in this business: be first, be smarter, or cheat.

brycemason

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Re: Lending robot
« Reply #29 on: December 09, 2013, 04:05:22 PM »
Also, I was kind of annoyed that there was a "coupon code" box and I didn't have a code. What's up with that, aren't we among the first "commercial" adopters?

Everyone knows early adopters pay the most! No soup for you!