Author Topic: Interesting Presentation from Lending Club  (Read 5495 times)

Zach

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Interesting Presentation from Lending Club
« on: December 24, 2012, 09:28:06 AM »
I thought some may find this presentation interesting....

https://s3.amazonaws.com/lcmedia2.lendingclub.com/2012-Goldman-Conference.pdf

It gives a look behind the scenes of Lending Club's business model (not usually seen), and goes into the traditional investor and borrower relationship.

Some key points that I found interesting:

-On slide 25, they indicate they have "no meaningful direct competition" (they don't see Prosper as real competition - not that surprising)
-The regulatory overview on slide 20 (news to me on how LC advisors functions)
-Page 15 which shows the percentage of money coming from different sources (i.e. institutional, retail, high net worth). Surprisingly, retail investors still make up about 50% of that graph.

Has anyone seen this before?

What are your thoughts?

william

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Re: Interesting Presentation from Lending Club
« Reply #1 on: December 24, 2012, 01:20:16 PM »
I just started laughing when I read "Limited Competition: No meaningful direct competition"
That's a huge back hand to Prosper's face.

rawraw

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Re: Interesting Presentation from Lending Club
« Reply #2 on: December 24, 2012, 02:35:00 PM »
Great find.  This deserves rep points +1

graceful

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Re: Interesting Presentation from Lending Club
« Reply #3 on: December 24, 2012, 03:44:55 PM »
It's easier to take down an arrogant competitor.

TcH

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Re: Interesting Presentation from Lending Club
« Reply #4 on: December 24, 2012, 03:47:25 PM »
I am actually disturbed by slide 15.  It basically reads 20% of sometime in the future is not P2P lending but just another form of banking.  Now this would not normally worry me except the actions taken by LC to carver up randomly selected loans for a small percentage of all loans.  It has the potential of dumping the bad loans toward P2P and the best loans toward the targeted banking system. 

Just my ignorant thoughts and forethoughts.

Tyler

Zach

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Re: Interesting Presentation from Lending Club
« Reply #5 on: December 24, 2012, 04:17:08 PM »
I am actually disturbed by slide 15.  It basically reads 20% of sometime in the future is not P2P lending but just another form of banking.  Now this would not normally worry me except the actions taken by LC to carver up randomly selected loans for a small percentage of all loans.  It has the potential of dumping the bad loans toward P2P and the best loans toward the targeted banking system. 

Just my ignorant thoughts and forethoughts.

Tyler

I don't feel that is an accurate assumption - otherwise how would they anticipate keeping investors on board if they are seeing a decline in quality loans and defaults, investors will pull their money.

I feel it is disturbing because at some point they may realize its far more efficient to service big, institutional investors/high net-worth individuals only and cut out the retail investing all-together.

Peter

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Re: Interesting Presentation from Lending Club
« Reply #6 on: December 24, 2012, 04:45:02 PM »
This is a great find. I spoke to someone who was at this conference but I wasn't able to get the presentation. Well done.

And there will always be the debate that LC will eventually cut out retail investors. But everything I have seen is that they are bending over backwards to be fair to both retail and institutional investors. Some of the changes they have made could have easily have been skewed more in the institutional investors favor. So I don't foresee a day anytime soon when retail investors are shut out.
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brycemason

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Re: Interesting Presentation from Lending Club
« Reply #7 on: December 24, 2012, 06:46:44 PM »
Kudos!

SBryantMS

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Re: Interesting Presentation from Lending Club
« Reply #8 on: December 26, 2012, 09:34:01 PM »
Posted by Lending Club.  Here is the link:

http://additionalstatistics.lendingclub.com/?p=27