UK app Pariti has integrated loan offers by p2p lending marketplace Zopa into its app allowing users to check whether they could get a better rate for their debt. User can apply for a debt consolidation loan directly from the app. Pariti is using Zopa’s API to access data for the offers.
Just before the weekend Bondora sent me an email with a personalized investment overview video (click here to see mine; I was not able to embed it directly here in the blog). The video page encourages sharing via social media (Google, Linkedin, Facebook, Twitter), so obviously an aim is to aid in investor marketing. In future I might need to spend less effort on my personal portfolio reviews and post the video instead (just kidding). The highlighted return figure is higher than my own calculations, but I did achieve a high return on Bondora over the past years.
Have you seen other attempts on viral marketing via investors by p2p lending marketplaces? Let me know in the comments, please.
EDIT: Succeeded in embedding the video now:
Currently there is an increase of promotions by p2p lending marketplaces in order to acquire and activate retail investors. Cashback offers are more frequent and Funding Circle is giving away iPads to investors that will invest at least 20,000 GBP during the Funding Circle spring promotion. Investors welcome these added benefits, but for marketplaces it is a fine line to walk. They want to grow originations, but risk that investors will expect getting extras and might hold back further investments until the next offer is made.
(Image source: Funding Circle)
I have written about the partnership between Google and Lending Club earlier. The image below shows an actual advertising message Google is sending to its Adwords customers. Note that a special loan is offered, not a standard Lending Club loan. This partnership is a great match for both Google and Lending Club. Google can enable its customers to get access to the funds they need to grow their business and potentially spend more on advertising services supplied by Google. Lending Club can target selected businesses, which were prescreened based on the data Google has via the Adwords customer relationship.
Image source: Business2community.com
UK p2p lending marketplace Rebuildingsociety currently offers a promotion where one business will receive 25,000 GBP of their loan interest free. Loan applications received until 31 August 2015 will enter into the promotion.
Daniel Rajkumar, CEO of Rebuildingsociety.com, said: ‘Companies seeking loans now have peer-to-peer platforms as a mainstream alternative to the banks and I’m delighted to be giving a 25,000 GBP interest free loan to a business. Businesses seeking loan finance can approach us either through commercial finance brokers or directly and our platform will typically enable viable applications to get finance within 4 weeks.’
Lending Club and HomeAdvisor signed a multi-year marketing deal, that will make Lending Club the exclusive partner providing access to loans for consumers seeking home improvement project financing through the HomeAdvisor website. HomeAdvisor is an online home improvement marketplace where homeowners can connect with pre-screened local home repair and improvement professionals. Continue reading
UK p2p lending company Ratesetter says its partnership with mobile operator giffgaff is very successful in driving loan demand. The partnership began in the end of 2013 and allows giffgaff to offer handsets to customers without an immediate upfront payment based on joint credit and fraud management technology.
Ratesetter says ‘The number of giffgaff loans doubled month-on-month in April’. Rhydian Lewis, CEO and Founder of RateSetter, said: ‘Our ground-breaking partnership with giffgaff shows the potential within the P2P sector to power a whole range of consumer services, starting with mobile phones, …’.
A spokesperson from giffgaff, said: ”This initiative has been revolutionary for our member base. We are now able to offer mobile handsets through our website, based on the easy provision of cost-effective loans provided by other members of the public. … ‘.
Rebuildingsociety will award one free interest free loan to one business. For the selected loan, Rebuildingsociety will pay the interest to the lenders.
Today Zopa announced yet another promotional offer for lenders: Rate Promise. In this limited time offer Zopa promises lenders that ‘… the money you lend within the Offer Period, for up to 5 years, will earn an average return of 5% over the lifetime of those loans.‘ That is after fees. The offer is valid from January 9th till Feb. 3rd. Actually for some lenders this will mean even higher guaranteed returns – see full T&C of the Rate Promise here.
I think Zopa’s repeated promotional offers (cash backs and now rate promise) are signals that Zopa feels the impact of the p2p lending competition which entice Zopa’s customers with models that seem more appealing (there has been a lot of discussion that with the introduction of Safeguard Zopa became much less transparent) or could yield higher returns. In terms of p2p lending loan volume originated per month the main competitors are certainly gaining ground on Zopa.
While this is a (nearly) no risk offer for those lenders managaing to invest during the promotion duration, users on the Zopa Talk board do wonder what longtime impact this has for Zopa. And rightly so as Zopa will have to cover any shortcomings from its fee margin. Done repeatedly it will effectively result in an unlisted fee decrease.
I am sure it will fulfill the probable short term goal: increase funds on offer and originations in January.
Zidisha has just published the Kindle E-Book ‘Venture: A Collection of True Microfinance Stories‘.
Venture is written for Zidisha supporters and anyone else
Zidisha founder Julia Kurnia told P2P-Banking.com that all proceeds will go to cover Zidisha’s operating costs.
Note to other p2p lending/p2p microfinance services: Do you have interesting inside stories to tell? Have you considered distributing them in e-book format? The marketing effect could be good compared to other marketing channels. For maximum exposure you might even offer the e-book for download free of charge. If you tried this method, tell us, so we can write about your experiences.
Here is how you can be one of 10 winners of a free copy of the new E-Book
Are you interested in Microfinance? Maybe you have used Zidisha already? Regardless of what triggered your interest in the subject, you have a good chance to win, because the only thing you have to do is: be quick!
The first 10 readers to leave a comment (any comment) under this blog post will win a free copy, courtesy of Zidisha. You need to leave your email address when commenting in the designated field. The email addresses will NOT be publicly visible. The email addresses of the 10 winners will be given to Zidisha. Zidisha will distribute the copies. And after you read it, please do come back and post a comment here how you liked it, so other readers can have some guidance on whether they should go ahead and purchase it. Thank you.