Prosper loan figures

Prosper loans have meanwhile surpassed 66 million dollars loan volume. A look at wiseclerk's prosper loan aging table shows that succeeds in increasing originating loan volume nearly every month. Currently new loans for about 8 million US$ originate each month.

However the figures also show an alarmingly high volume for late and defaulted loans. Especially when looking at older loans (the new ones do not have aged enough to be technically able to default). For example of 2.1 million dollar loan value that originated in June last year, $177,000 loan value has defaulted and another $105,000 are 3 or more months late. The default rate for loans from June 2006 will therefore be well above 10 percent at the end of the 36 month term. And this is no execption. For March and April 2006 defaults are already higher than 10 percent of originating loan value.

prosper loan aging

P2P Lending Korea – Popfunding and Moneyauction

Internet usage in Korea is booming, most surfers enjoy broadband internet access. Furthermore the population is very open minded towards new technologies.

This year two P2P lending services launched. allows borrowers to get loans up to a maximum amount of approx. 2000 US$. Interest rates are auctioned. Maximum interest rate is 29 percent. The CEO is Hyun Uk Shin. According to the Korea Times the service does NOT charge fees from borrowers or lenders. Only bank fees have to be paid. If a borrower fails to make a payment will disclose his identity and contact information to the lender. has a similar concept. 

Financial regulators are looking into the concepts to check if they are in compliance with korean laws.

(Sources: Ringblog, Korea Times) 

Zopa prepares launch in Italy

Actually is not run by the British Zopa Ltd. but by the franchise “P2P s.r.l” with offices in Milano. The company has licensed the use of the brand and the technology for Italy. will allow Italians to borrow up to 40000 Euro (roughly $55000), which is a high amount, compared to p2p services in other countries.

The company was created by Nova partners, Milan, together with New College Capital Ltd.

It is possible to pre-register on to be notified at launch time.

Sources(1, 2, 3,  and own research)

Correction and Update: I must excuse myself to have confused the CEO of Zopa Italy with another Italian banker with identical name. As Carlo of Zopa Italy pointed out in a comment to this post: “Zopa Italy’s Ceo is Maurizio Pietro Sella, not Maurizio Sella. Maurizio Pietro started is working career with Banco di Santo Spirito (Capitalia Group), then joined in 1990 Citibank, where he had several assignements (mainly in London and Switzerland) and in 2002 the Julius Baer Group in Geneva. Before Zopa Maurizio Pietro was CEO of Julius Baer Creval Private Banking Spa, a joint venture between the Julius Baer Group and Gruppo Credito Valtellinese.”

According to unverified sources the venture raised 2.8 million Euro funding from its shareholders. It is speculated that Zopa Italy will take higher fees (maybe 1 percent from lender and 1 percent from borrower) than Zopa in England. This seems possible since consumer banking costs in Italy are generally higher.

Lendingclub to introduce p2p lending to Facebook members

Lending Club

Today, launched offering a p2p lending service to Facebook members. Members can request loans between $1000 and $25000. Other facebook members can the lend the money to the borrower. While technically not arranging loans between freinds like CircleLending, Lendingclub makes uses of the social network and the trust that users have into it. Lendingclub combines aspects from other p2p lending sites like and

Comparing it to Prosper:

  • Lendingclub requires higher credit score as threshold for borrowers to apply (640 compared to Prosper’s 520)
  • Lendingclub suggests an interest rate based on the borrowers credit grade rather than letting the borrower set an interest rate.
  • There are groups like at Prosper

Lendingclub uses what it calls “LendingMatch” to automatically match parties on shared connection it finds. Lenders can additionally manually select and search loans.


The founders of Lendingclub, one of them has a background at Mastercard, raised $2 million in angel funding (source: VentureBeat).

Using an existing social network gives Lendingclub a great marketing advantage over competitor, which had to build its memberbase starting from zero.