Author Topic: Banking without Banks  (Read 10920 times)


Fred

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Re: Banking without Banks
« Reply #1 on: February 27, 2014, 11:44:26 PM »
SeattleSun, thanks for sharing the link.

This is new to me (perhaps this has been discussed before, somehow I never noticed):

Only a third of the money coming to Lending Club is now from retail investors: the rest (the fastest-growing slice) comes from rich people and institutions.

Peter

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Re: Banking without Banks
« Reply #2 on: March 01, 2014, 09:48:54 AM »
SeattleSun, thanks for sharing the link.

This is new to me (perhaps this has been discussed before, somehow I never noticed):

Only a third of the money coming to Lending Club is now from retail investors: the rest (the fastest-growing slice) comes from rich people and institutions.


Renaud Laplanche has said that the mix at LC is one-third retail investors, one-third high net worth individuals/families, one-third institutions.
Publisher of the Lend Academy blog

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lascott

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Re: Banking without Banks
« Reply #3 on: April 06, 2014, 04:20:24 PM »
Renaud Laplanche has said that the mix at LC is one-third retail investors, one-third high net worth individuals/families, one-third institutions.
Was there a general idea what this means?  500K annual income? and Investing $xx,xxx dollars per month?
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Fred

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Re: Banking without Banks
« Reply #4 on: April 06, 2014, 09:13:09 PM »
Renaud Laplanche has said that the mix at LC is one-third retail investors, one-third high net worth individuals/families, one-third institutions.
Was there a general idea what this means?  500K annual income? and Investing $xx,xxx dollars per month?

Perhaps this will help:  http://en.wikipedia.org/wiki/HNWI

A high-net-worth individual (HNWI) is a person with a high net worth. In the western, and primarily American, private banking business, these individuals typically are defined as having investable finance (financial assets not including primary residence) in excess of US$1 million.
« Last Edit: April 06, 2014, 09:14:48 PM by Fred »

lascott

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Re: Banking without Banks
« Reply #5 on: April 06, 2014, 10:28:58 PM »
Renaud Laplanche has said that the mix at LC is one-third retail investors, one-third high net worth individuals/families, one-third institutions.
Was there a general idea what this means?  500K annual income? and Investing $xx,xxx dollars per month?
Perhaps this will help:  http://en.wikipedia.org/wiki/HNWI A high-net-worth individual (HNWI) is a person with a high net worth. In the western, and primarily American, private banking business, these individuals typically are defined as having investable finance (financial assets not including primary residence) in excess of US$1 million.
I understand about the US$1 mill investable networth (vs annual income) point now.

What I think is really more important is how much these folks are investing monthly and thus how many loans they take up VS the retail investor?
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

rawraw

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Re: Banking without Banks
« Reply #6 on: April 06, 2014, 10:57:44 PM »
Who cares?  I never understand why everyone focuses on the other investors, how much they buy, etc.

lascott

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Re: Banking without Banks
« Reply #7 on: April 07, 2014, 12:39:35 AM »
Who cares?  I never understand why everyone focuses on the other investors, how much they buy, etc.
My question is related to understanding past, current, and future availability of loans with "good" characteristics.

My understanding was years ago you had "retail" investors (mainly non-HNWI) that could see a lot of loans and even manually take their time choosing them (analyze stats closely, ask question, read desc, etc).

Then my understanding was that "institutions" decided they wanted a piece of the high yielding pie. Using tools of their trade (high speed purchases, advanced multi-faceted analysis), that they were able to get high quality loans in minutes (even seconds).  As I recall LC realized this and limited the number of loans or loan amounts that the "institutions" could take. (ie. bringing it back to the roots of P2P and retail investors and retail borrowers). [edit]** & ***[/edit]

If HNWI (who can afford higher end tools) and "institutions" gain more and more of a foot hold then that leaves more "retail" investors out and lessens my/our long term (5-10+) years ability to keep using LC.

Hope that helps explain my angle/perspective/curiosity (OK, ok, ... self interest).

[edit]
** AUGUST 22, 2013 - by Simon Cunningham in P2P Lending Strategy
Few Available Lending Club or Prosper Loans? 7 Ways to Find More
http://www.lendingmemo.com/find-available-lending-club-prosper-loans/

***
http://blog.lendingclub.com/2012/09/28/investor-updates-and-enhancements/
http://www.lendacademy.com/several-changes-today-for-investors-at-lending-club/
[/edit]
« Last Edit: April 07, 2014, 01:00:54 AM by lascott »
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core

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Re: Banking without Banks
« Reply #8 on: April 07, 2014, 04:09:48 AM »
If HNWI (who can afford higher end tools) and "institutions" gain more and more of a foot hold then that leaves more "retail" investors out and lessens my/our long term (5-10+) years ability to keep using LC.

Scott, if you're looking out 10+ years then you've got bigger things to worry about than how many loans some HNW individuals are able to gobble up.  If I were you I'd be more concerned with the ability to participate at all in just a couple years.   

After the IPO they will have little use for whiny individuals who call in all the time taking up employee time asking for $0.01 refunds of fees, asking every little question that they want answered, asking for trade busts, or showing up uninvited for tours.  These people seem to think depositing a few lousy bucks gives LC the obligation to hold their little miserable hands, chat about how things work on the platform, and cheer them up whenever it's needed.  But unfortunately they can't really pick and choose who they do business with on an individual basis... not easily, anyway.

Dealing with individuals can be expensive.  If there's no reason to put up with that expense then they won't.  Not when there is money beating down the doors.  It's much easier to deal with a few fat wallets then tens of thousands of individuals who want API access for their little toy script and pretty charts and free marginal tax advice from journos.  When public image isn't so important (post IPO), I would not be surprised at all if we are not allowed to invest in new loans at some point in the not-too-distant future.  Not unless 10x more borrowers suddenly show up and there isn't the cash for them.

Even if you don't take any stock in any of that, consider what's going to happen immediately after the IPO when individuals from all 50 states are suddenly able to invest in new loans on the primary platform (blue sky exemption), and this will be right after all the media hype about the IPO itself.  You think it's going to be business as usual after that?  You better adjust your 10 year assumptions, and your 1 year assumptions too.

Fred93

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Re: Banking without Banks
« Reply #9 on: April 07, 2014, 06:04:42 AM »
If HNWI (who can afford higher end tools) and "institutions" gain more and more of a foot hold then that leaves more "retail" investors out and...

There's a flaw in your argument.  Excellent tools for high speed trading are available free.  Then there are some folks who charge a small fee.  Either way, you can afford it.

rlv99

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Re: Banking without Banks
« Reply #10 on: April 07, 2014, 02:03:46 PM »
Quote
......or showing up uninvited for tours

OMG,  I didn't realize my unannounced visit to LC last October would signal the end of LC to retail investors!!!!

Oh well core, there is  always the stock market, Founders Club, Vegas,  online gambling sites as well as the inevitable competition to LC that will emerge to welcome our money.

Thank goodness I am fully invested now!   8)

core

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Re: Banking without Banks
« Reply #11 on: April 08, 2014, 08:09:09 AM »
OMG,  I didn't realize my unannounced visit to LC last October would signal the end of LC to retail investors!!!!

"OMG" Mr. Vega.  For a man of extreme age such as yourself, I'm rather interested why you are so well versed in teenage text slang.  You must be one hep cat.  I would kinda like to know why you're so hip.  Do you drive around an ice cream truck to snag teens when you're not talking to your account rep on the 900 line?

As for your visit, I see no harm.  If you weren't there in person you'd be involved in your usual phone chat.  And I'm going to remind the entire forum that this elderly gentleman took a RUSSIAN into a controlled space.  I know where my loyalties are.  They are not with the Russians.  You better re-examine where yours are.

Rob L

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Re: Banking without Banks
« Reply #12 on: April 08, 2014, 08:43:24 AM »
"OMG" Mr. Vega.
Not knowing the individual's true name I initially thought you were  referring to Mr. (Victor) Vega (Pulp Fiction).
His unannounced visit to LC would probably mean the end of something; especially if accompanied by his BMF friend.
I have no clue if BMF is widely used; just made it up. Anyone who has seen the movie knows the meaning.

core

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Re: Banking without Banks
« Reply #13 on: April 08, 2014, 09:31:18 AM »
What's a BMF? 

Maybe I think it means rlv99 has this Russian chick, but she's really a HE.  Please try to fit this into "BMF" for my sanity.  Thank you.
« Last Edit: April 08, 2014, 09:32:58 AM by core »

Rob L

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Re: Banking without Banks
« Reply #14 on: April 08, 2014, 10:56:09 AM »
BMF: See - If he asks you for his wallet back just give it to him.