Author Topic: What does LC need to do to attract more retail investors?  (Read 39686 times)

Boatguy

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What does LC need to do to attract more retail investors?
« on: May 17, 2016, 12:58:12 PM »
We've all been complaining to some degree for a number of years.  RL's departure is a watershed event, a huge opportunity.

What does LC need to do win more of our investment dollars, and cause us to encourage other investors to invest at LC?

Here are a couple of ideas to get the ball rolling:

1)  Update the web site, it's has a very dated look and feel and then provide high quality mobile apps for phone and pad like every other retail broker.

2)  Quite reporting everything for the lifetime of my account and give me some numbers (return, portfolio age, etc.) that are relevant to my current portfolio.

3)  Treat me like a customer, not a user id.  I manage three accounts at LC, and soon a fourth, but LC treats me like four email addresses.  I have to manufacture a new email address to open a new account (e.g., IRA, taxable, wife's IRA, etc.)

4)  More transparency, short of revealing trade secrets, regarding the process for selling/pricing/releasing loans fractionally versus whole.  Convince us that whole loan buyers aren't getting a better deal like Cirrix's default floor.

5)  Give me a way to fix my investment and take income like a bond.  Now I have to stop investing, let cash accumulate, withdraw and then restart investing.  If I buy a bond, or bond fund, I get regular income without having to jump through a bunch of hoops.

Anybody else got any ideas?

jz451

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Re: What does LC need to do to attract more retail investors?
« Reply #1 on: May 17, 2016, 01:14:09 PM »
2. Agree, there needs to be more analytics so I can compile more information.
3. Agree, I want to open an IRA eventually but don't know why I need another email AND create another account. Make it like Fidelity where multiple  accounts are on the same user account.
5. I'm not sure what you are doing but that sounds highly innefficient. Is there something I am missing that you have to stop investing and withdraw?

There also needs to be a BRV so investors can have some peace of mind.

dompazz

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Re: What does LC need to do to attract more retail investors?
« Reply #2 on: May 17, 2016, 01:15:20 PM »
More transparency in the secondary market.  Historical transaction data.  The ability to make a bid below the ask for a note.  Better API for interaction.

fliphusker

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Re: What does LC need to do to attract more retail investors?
« Reply #3 on: May 17, 2016, 01:54:59 PM »
More transparency in the secondary market.  Historical transaction data.  The ability to make a bid below the ask for a note.  Better API for interaction.
I do not get this part.  FOLIO is not owned or operated by LC, why is it their responsibility?

lender90530

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Re: What does LC need to do to attract more retail investors?
« Reply #4 on: May 17, 2016, 01:56:05 PM »
1 word - BRV

Rob L

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Re: What does LC need to do to attract more retail investors?
« Reply #5 on: May 17, 2016, 01:56:53 PM »
Right now I think they'd be pretty happy just to keep the ones they had pre 5/9/2016.

Going forward, who wants to be an unsecured creditor of LC? Maybe I pretended that in the real world that didn't matter much, but then I learned otherwise. Personally, I want to legally own my shares of the obligations of the borrowers to which I loan my money. Is that just too much to ask? I don't want to own IOU's from LC. Don't know why these loans work like they do. I always guessed it had to do with the hoops LC had to jump through for the SEC to create these securities, but I really don't know. Maybe a BRV fixes my problem; maybe not. Again I dunno... When and if it ever came down to the BRV, would it really work? Would hate to have a judge someday say nice try but no cigar.

If LC doesn't fix the above then all the other stuff, better web site, API, a real liquid secondary market, etc. doesn't mean much to me.

investny

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Re: What does LC need to do to attract more retail investors?
« Reply #6 on: May 17, 2016, 01:57:53 PM »
BRV
Higher interest rates
Independent audits to verify no cherry picking of loans

bobeubanks

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Re: What does LC need to do to attract more retail investors?
« Reply #7 on: May 17, 2016, 01:58:24 PM »
More transparency in the secondary market.  Historical transaction data.  The ability to make a bid below the ask for a note.  Better API for interaction.
I do not get this part.  FOLIO is not owned or operated by LC, why is it their responsibility?

LC has a vested interest in their notes being liquid.

BruiserB

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Re: What does LC need to do to attract more retail investors?
« Reply #8 on: May 17, 2016, 01:59:55 PM »
For item 5, you can accomplish something like this by establishing a minimum cash threshold that your auto-invest rules don't go below.  I actually don't know if you can do this with LendingClub's auto-invest, but I know you can with several of the 3rd party providers.  For instance if you want to take out $1000 per month, then set a threshold of $1000 dollars.  Your cash will build up until there is $1000 in your account and then auto-invest will resume.  Once a month you take out the $1000 and the rule will see your cash is below the threshold and automatically let it build up again before resuming purchasing.

I would imagine that if LendingClub were to specifically cater to your request, it would operate basically like this anyway.  I guess they could make it easier by allowing you to say "automatically withdraw $X from my account on the YYth of each month" and then it would automatically perform these steps.

AnilG

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Re: What does LC need to do to attract more retail investors?
« Reply #9 on: May 17, 2016, 02:02:55 PM »
We are thinking along same lines. I wrote something similar yesterday on Quoro. http://qr.ae/8aTLHm

BRV
Higher interest rates
Independent audits to verify no cherry picking of loans
---
Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com

investny

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Re: What does LC need to do to attract more retail investors?
« Reply #10 on: May 17, 2016, 05:02:49 PM »
We are thinking along same lines. I wrote something similar yesterday on Quoro. http://qr.ae/8aTLHm

BRV
Higher interest rates
Independent audits to verify no cherry picking of loans

I almost feel like we should start a change.org petition. Funny or actually sad it had to come to this.

nonattender

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Re: What does LC need to do to attract more retail investors?
« Reply #11 on: May 17, 2016, 05:14:20 PM »
NO FURTHER RETAIL NOTE SALES UNTIL BANKRUPTCY REMOTE VEHICLE IS FIRMLY IN PLACE.

FULL STOP.
A little nonsense now and then is relished by the wisest men.

dompazz

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Re: What does LC need to do to attract more retail investors?
« Reply #12 on: May 17, 2016, 05:20:57 PM »
Quote
This industry has come so far in 11 years that it now makes me long for my childhood bank's passbook savings account.
Personally, I yearn for the days when my passbook earned 5%.

SeanMCA

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Re: What does LC need to do to attract more retail investors?
« Reply #13 on: May 17, 2016, 05:26:47 PM »
With all the investors "fleeing," how is it that there has not been a single note that meets my criteria since the day before the announcement?

My LendingRobot buy chart looks really ominous:



I go for 36-month A and B notes with annual incomes 90k+ among some other conservative features across only 24 states. Could be a coincidence I suppose but cash is really starting to pile up and I'm not exactly anxious to loosen up my filters with all the recent news. Has anyone else experienced anything like this or is it biz as usual for you all?
I'm a merchant cash advance veteran exploring the p2p lending waters.

nonattender

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Re: What does LC need to do to attract more retail investors?
« Reply #14 on: May 17, 2016, 05:31:36 PM »
It's FULL STOP for retail.  Why pretend?  If anything happens to those retail investors, you can all kiss this industry goodbye, permanently.

There is simply no other priority with that priority.
A little nonsense now and then is relished by the wisest men.