Services

Demand at Boober NL slows

wiseclerk

Demand at Boober.nl is slowing. When I checked today only two loan listings were open. The following curve showing unique loan requests definitly shapes in the wrong direction. Boober lenders discus this development in this forum thread.


(Source Booberwatch.nl)

Since the launch 15 months ago, about 2.4 million Euro (about 3.8M US$) loan volume has been funded through Boober.

German Smava.de has funded about the same volume (2.3 million Euro) but after a slower start 14 months ago, lately the volume growth accelerated moderately.

Smava loan volume
(Smava loan volume, Source: Smava loan stats at Wiseclerk.com).

On Smava as well as on Boober average borrower interest rates have risen considerably since the start. This reduces the attractiveness for borrowers.

New p2p lending report

wiseclerk

A new research report on peer to peer lending was published at VRL KnowledgeBank. The 200 pages PDF-report (table of contents), written by Ray Cain, can be purchased online. It covers the following issues:

  • What is P2P lending? Who are the main players?
  • What is their operating model and crucially their profitability projections?
  • What are the practical issues involved in building a large virtual community of lenders and borrowers, such as compliance, identity verification, credit screening, IT infrastructure, customer service and marketing? Can borrowers and lenders really be peers?
  • What short term lessons can financial services providers draw from P2P?
  • The future for P2P lending… is it an opportunity or a threat for the lending industry? How to blend P2P with other financial services? Can it be rolled out across the full range of mass market retail financial services?

 

New at Smava – business loans, larger amounts, longer terms

wiseclerk

German p2p lending service Smava.de made some changes:

  • Borrowing for business purposes is now allowed. The borrower still is an individual person but is no longer limited on private purposes of the loan
  • Borrowers may borrow up to 25,000 Euro (approx 39,200 US$), previously the maximum was 10,000 Euro
  • Maximum amount any lender can invest in the marketplace is raised to 100,000 Euro (previously 25,000 Euro)
  • Loan terms are now selectable 36 or 60 months (previously only 36 months); the insurance pools (Anleger-Pools) are seperated by credit grade and term. This complicated construct will influence lenders when deciding to bid on loans that are otherwise comparable but differ in loan term, since the level reached in the insurance pools directly impacts each payment rate.
  • Bad debt sales rates have been lowered for lower credit grades (previously it was 22.5% to 25%, now it is 15% to 25% depending on credit grade)

(Source: P2P-Kredite.com)

Since it's launch in February 2007 Smava has funded 457 loans with 2 million Euro (approx 3.14 million US$) loan volume. 8 loans have defaulted and currently 9 loans are late.