July represents our fifth consecutive month of record growth with over $30 million in loans originated through the Prosper platform. This is more than double the originations from July, 2012, and brings Prosper to more than $580 million in loan originations since inception.
As Prosper grows, so does the demand from our customers, and we remain focused on making sure we’re making the right changes and product enhancements that will enable us to offer our services to a wider range of borrowers and lenders. Here are a few of the accomplishments from July and some changes that you can expect over the coming weeks and months:
- New addition to the Board of Directors – During the month of July, Prosper Marketplace welcomed Raj Date to the Board of Directors. Mr. Date, who is currently managing partner at Fenway Summer, is the former Deputy Director of the United States Consumer Financial Protection Bureau. He is also a former member of Prosper Marketplace’s Board of Directors, a position he stepped down from in 2010 to work at the CFPB. Mr. Date brings a wealth of knowledge and experience from his time at the US Consumer Financial Protection Bureau, and we’re thrilled to have him back at Prosper Marketplace. Read the official press release.
- New credit scoring – In the next few weeks we will be updating the credit bureau model that we use in conjunction with the Prosper Score to calculate our Prosper Rating. We are replacing our current scoring model, Scorex Plus™, with the more widely recognized FICO® 08 Score. Our Credit Risk team has done extensive statistical analysis to evaluate several bureau scorecards and found that the FICO® 08 Score is the most effective. The FICO® 08 Score is the most frequently used credit bureau scorecard among lenders in the consumer finance industry. This change will more directly align us with industry standards, and will also enable us to better meet borrower expectations with our rates and offers.
- Improved borrower experience – We are in the process of developing and releasing several enhancements to our borrower onboarding process. We expect these changes to have a huge impact on the borrower experience overall. What this means is that we will be making changes and upgrades to the way we interact with borrowers with the goal of making posting a loan simpler and easier. Stay tuned for more information.
Along with all of the above developments, we continue to see great momentum in the press as people start to take note of P2P and the opportunities it brings borrowers and lenders.
- Bloomberg: Ex-CFPB Leader Raj Date Rejoins Board of Peer-to-People Lender
- Reuters: For Online Lenders, Wall Street Cash Brings Growth and Risk
- Forbes: What to do with Your Bond Portfolio Now
And, if you missed it, last month Ron Suber, Head of Global Institutional Sales for Prosper Marketplace, gave the keynote speech at LendIt 2013. You can view it here. Coming up in August, Ron will be delivering additional keynotes at P2P Lending and Social Economy conferences in both Cambridge and Las Vegas. Stay tuned for more information. Thanks for reading!
President, Prosper Funding LLC