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Prosper Introduces Sixth-Generation Credit Model

By Eric Thaller

We are very pleased to announce that starting Thursday evening, August 13th, Prosper will begin using an updated credit model, PMI 6.  We have many goals at Prosper, but first and foremost, we are focused on ensuring that the pricing, credit, risk and underwriting model we use is constantly improving. This benefits all of our customers – retail investors, institutional investors and our borrower members.

Advances in the credit model – from the early days, to PMI 4 in 2013, PMI 5 in 2014 and now PMI 6 – have enabled us to provide access to more loans to credit-worthy people for a variety of purposes, including consolidating high-interest debt. Since inception, more than $4 billion in loans have originated through the Prosper platform, and the company continues to grow as more people turn to Prosper for an easier and smarter way to borrow money.

The launch of PMI 6 underscores our commitment to ongoing improvement, and will enable us to continue our growth while maintaining loan quality.

Investors that have questions about PMI 6 can email the Prosper Investor Services team at investorteam@prosper.com.

08/12/2015 by in Featured, Lenders, Prosper Spotlights

Prosper Opens for Business to Investors in Indiana

Posted By Eric Thaller

Today we announced that the Prosper platform is now available to investors in Indiana. With the addition of Indiana, Prosper is now open to investors in 32 states and the District of Columbia. We appreciate the work of the state regulators to bring this investment opportunity to its residents.

As one of the only platforms open to unaccredited individual investors in the U.S., Prosper offers a great way for individuals to diversify an investment portfolio with an asset class that provides attractive returns.

Indiana residents can open a traditional investment account or a Prosper retirement account, which offers certain tax advantages. We suggest a minimum investment of $2,500 in order to properly diversify across at least 100 notes.

For borrowers, marketplace lending offers access to competitively priced loans that have fixed terms, transparent fees and no prepayment penalty. Borrowers come to Prosper to consolidate high-interest debt or fund large purchases such as home improvement projects, medical expenses, or weddings and other special occasions.

The news about Indiana follows our announcement last week of another record quarter that has pushed us above $4 billion in loan originations through the platform since it launched in 2006. We just closed out our largest quarter ever — $912 million in loans originations through the platform, a staggering increase of 1166% in two years.

We’re thrilled to welcome Indiana investors to the platform and to be able to offer more people a better way to borrow and invest. We look forward to working with more states in the future.

07/13/2015 by in Featured, Lenders, Prosper Spotlights

Prosper Reaches New Milestones — $4 Billion in Loans Following Another Record Quarter

In early 2013, when my partners, Steve and Ron, and I joined Prosper Marketplace, this company and this industry were in a vastly different place. Prosper Marketplace had just closed out 2012 with $150 million in loans originated through the platform, 85 employees, and frankly, a future that was very much in question. At the time, we had no expectation that Prosper would reach the kind of loan volume it is doing today. We just knew that Prosper could help people get out from burdensome high-rate debt and be a better option for paying for large-ticket purchases. We set to work building, hiring and fixing things here, with the goal of bringing in the best people and scaling the business

Back in the second quarter of 2013 (our first full quarter at the company) Prosper originated $72 million in total loans through the platform. Fast-forward two years, and we just closed out our largest quarter ever — $912 million in loans originations through the platform, a staggering increase of 1166% in two years. This brings us to another milestone – today, we crossed more than $4 billion in loans on the platform since launching in 2006. This growth has not come at the expense of quality – we continue to deliver excellent loan performance and the quality of our loans is stronger than ever.

 

 

As we look toward the second half of the year we see that Prosper is currently on track to double the $1.6 billion in loans originated through the platform in 2014, which in itself was a record (and a 350% increase from 2013). These numbers underscore the continued growth and momentum of marketplace lending as it moves toward mainstream awareness. More and more people are realizing that marketplaces and online lending are a better way to borrow and invest. And the industry is noticing as well. So far this year, Prosper Marketplace has been named one of Forbes Magazine’s Most Promising Companies of 2015, and AlwaysOn named Prosper Marketplace the OnFinance Company of the Year, as well as one of their Global 250 Top Private Companies.

Our focus remains on bringing consumer-friendly personal loans to more people, and making changes to improve the experience for both its borrowers and investors. This includes launching a responsive website that functions across desktop and mobile devices, and making continued improvements to the verification process so it is a fast and streamlined experience. We are seeing more people come back for their second loan through Prosper, as well as a wider variety of use cases beyond debt consolidation, such as large purchases, medical expenses, and home improvement projects.

Prosper is also making improvements for its retail investors, which remain a core part of the Prosper investor community. In April Prosper introduced an update that gives retail investors better visibility into pending orders and makes it easier for them to access data. In the coming months there will also be more data analytics and account management tools to improve investors’ experience using the platform. As Prosper works to broaden access for retail investors, we also saw the launch of the first publicly traded fund through River North, a significant move toward broadening retail access to marketplace loans.

To keep up with all of this growth, Prosper Marketplace continues to grow its team in all of its locations. We now have more than 457 employees with offices in San Francisco (recently named one of the coolest offices in the Bay Area by the SF Business Times), Salt Lake City (where we just opened a new office), and Phoenix (where we now have 130 people focused on customer service and verification). This year alone, we have doubled the size of our engineering team and we’re still hiring across all functions. If you are interested in what we are building, check out the jobs section of our website.

We are proud to have pioneered the online lending market and to operate one of the largest platforms in the world today, with much more growth in store. We continue to be inspired our customer stories, and believe in our mission to help people achieve financial well being. Thank you to the entire community, from all of us here.

Aaron Vermut
CEO, Prosper Marketplace

 

07/09/2015 by in Borrowers, Featured, Lenders, Prosper Spotlights

Prosper Marketplace Survey Finds Cost is the Biggest Cause of Concern for Women Considering Fertility Treatments

By Cheryl Law

In February of 2015, Prosper Marketplace announced that we had acquired our first company – American Healthcare Lending (now Prosper Healthcare Lending). Since that time, we’ve learned a lot about the healthcare industry and the opportunity to bring a consumer-friendly personal loan product to people who need to finance medical procedures. As awareness of marketplace lending has grown, we’ve also heard inspiring stories from people who have used a loan through Prosper* to finance medical procedures that were either not covered by insurance or were out of reach due to high deductibles. This includes Scott, who took out a loan through Prosper to fund bariatric surgery that saved his life. He shared his emotional story with us in this video.

The stories of how our customers used a loan through Prosper to help them achieve their goals are inspiring, and we wanted to learn more about the economics of elective procedures, as well as the hurdles people are facing. We decided to start with one procedure that is becoming more commonplace than ever before: fertility treatments. More than 7.4 million women in the U.S. have had them, with 175,000 procedures in 2013 alone at an average cost of $12,400 per cycle.

Working with Market Cube, we commissioned a survey to find out more about the assisted reproduction process and what barriers women face, including how they pay for treatments and what the financial impact is given that only 15 states require coverage for infertility treatments. What we found was compelling, and underscored our belief that marketplace lending can make a positive impact on people looking to finance these types of procedures.

First and foremost, the survey told us that cost was by far the biggest cause of concern for woman considering fertility treatment. In fact, financial impact outweighed the health or emotional concerns for women when seeking treatment. Furthermore, the survey found that 84% of women have concerns about how they can finance their fertility treatment, and one-third had actually delayed treatment for financial reasons.

When it comes to insurance coverage, fewer than half of the respondents relied on health insurance to pay for treatments, and less than 30 percent used insurance as the primary payment method.

The survey also gave us insights into the types of financial burden that can come with fertility. According to the survey, more than 70 percent incurred some degree of debt from fertility treatments and nearly half of those incurred more than $10,000 in debt. Additionally, nearly 30 percent used credit cards, with close to half of those using credit cards as the primary payment method

Overwhelmingly, the survey showed us that when it comes to starting the process of fertility treatments, cost is by far the thing that concerns patients the most. We also learned that today, only 2.3 percent of those surveyed had used peer-to-peer lending as a payment method, bringing us to the conclusion that more awareness is needed about how a marketplace loan can offer an affordable way to manage the costs associated with this and other important medical procedures.

When insurance isn’t an option, loans through marketplace lenders can offer a better way to borrow money than racking up credit card bills. The process is fast and convenient, freeing up time to focus on family building instead of finances.

For a more detailed overview of the report’s findings, click here.

 

*All loans through Prosper are made by FDIC Member Banks.

05/20/2015 by in Borrowers, Featured, Prosper News, Prosper Spotlights

Improving the Investor Experience at Prosper

By Eric Thaller, VP, Investor Services

One of Prosper’s key priorities for 2015 is improving the experience for our retail investors. This group of investors has always been an important part of Prosper’s DNA, and we are committed to making changes this year that improve the products they use. This includes increasing the number of fractional loans in the pool, which is at a record number today.

The goal is to put the information investors need at their fingertips so they can easily understand the status of their Notes and more detailed information about how their portfolios are performing. Over the next several months we will be introducing a series of enhancements that focus on data analytics, account management and other investing tools.

Our first step this week was an update to the My Quick Invest Order history and Order Detail screens to improve the experience for the retail investor. The redesigned pages now give better visibility into pending orders and make it easier for investors to access and download data.

We are committed to making additional improvements for our retail investors this year. Stay tuned for more updates, and we look forward to your continued feedback and ideas.

04/03/2015 by in Featured, Lenders, Prosper News, Prosper Spotlights

 

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Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.