Author Topic: Lending Club potential new offerings  (Read 333 times)

JDII

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Lending Club potential new offerings
« on: August 28, 2020, 07:27:58 PM »
Did anyone else take the survey LC sent in regards to their potential new offers?  They have been talking about expanding in banking areas.  The survey was asking questions about a lot of potential offerings. The three that peaked my interest were:

1-A CD that is tied to an index (i.e. S&P) and has a floating rate of return.

2-A CD that is tied to an index of Lending Club notes.

3-A high interest saving accounts for investors of Lending Club notes.

We'd need to see many details in regards to interest rate, risk, minimum deposits, ect, but I think the concepts were sound.

Any thoughts?
« Last Edit: August 28, 2020, 07:37:04 PM by JDII »

storm

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Re: Lending Club potential new offerings
« Reply #1 on: August 28, 2020, 10:17:01 PM »
I was not targeted by this survey.

I hate to be a Debbie Downer, but LC has neglected its retail investors for years (website hasn't been updated, secondary marketplace shut down, poor loan availability and underwriting, etc.). I just don't see myself reinvesting in the LC ecosystem without some giant incentive. How can LC compete with an index fund or ETF from one of the many discount brokerages with no commissions? Considering we have double-digit unemployment in this country right now, I just don't think it is wise to invest in consumer lending either.

JDII

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Re: Lending Club potential new offerings
« Reply #2 on: August 28, 2020, 10:42:15 PM »
Quote
I was not targeted by this survey.

I hate to be a Debbie Downer, but LC has neglected its retail investors for years (website hasn't been updated, secondary marketplace shut down, poor loan availability and underwriting, etc.). I just don't see myself reinvesting in the LC ecosystem without some giant incentive. How can LC compete with an index fund or ETF from one of the many discount brokerages with no commissions? Considering we have double-digit unemployment in this country right now, I just don't think it is wise to invest in consumer lending either.

You aren't Debbie Downer. Your view is as valid as anyone else.

I can only speak for myself but I'm very happy with my Lending Club investment. I'm coming up on my three year anniversary and my NAV is creeping up toward 10%.  Investing in consumer debt right does seem risky but I've had less defaults in 2020 that in the past. Part of that is from loans in hardship status (19 out over 600 current notes) and part of it is from better targeting of loans on part (I think). 

If I'm going to keep investing in Lending Club notes (which I am) I'd be happy to see some of their proposals become reality.