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Prosper Marketplace Announces Acquisition of American Healthcare Lending

Today, Prosper Marketplace is excited to announce its first-ever acquisition — American Healthcare Lending, a leading patient financing platform. This is an important step in expanding our capabilities and bringing our product into a market where we believe it can make a positive impact.

Healthcare lending is a growing industry, and one that we’re excited to become more involved in via this acquisition. The healthcare industry is plagued with high deductibles and spotty customer service. We see a huge need for consumer-friendly, competitively priced financing alternatives for people whose elective medical procedures aren’t covered by insurance or fall below the deductible. American Healthcare Lending gives its nationwide network of healthcare providers the ability to offer affordable loans to patients right from the doctor’s office.

This means that women who need lengthy and costly fertility treatments can pay for them, and patients who need to lose weight and are considering surgical options that insurance won’t cover can still get them. They won’t have to wait to get treatments that can improve their quality of life. They don’t have to walk away from procedures that could make their future brighter. Health and wellness aren’t luxury items.

This is best illustrated by Scott, the winner of Prosper’s $2 Billion Strong video contest. Scott was in need of gastric bypass surgery. When his insurance wouldn’t cover it because he wasn’t sick enough yet, he turned to Prosper for a loan. You can watch his inspiring story here.

2014 was a year of tremendous growth for Prosper. There were a record $1.6 billion in loans made through the platform, up more than 350 percent from the previous year, with $205 million in December alone. 2015 will be another year of growth, and we’re excited about this opportunity to bring financing options to people in need and to expand into a vital and growing market.

01/27/2015 by in Borrowers, Featured, Lenders, Prosper News, Prosper Spotlights

Marketplace Lending Takes the Main Stage

This is an historic moment. Lending Club debuted on the New York Stock Exchange this morning, becoming the first online credit marketplace to go public. It’s a huge validation for the industry and will bring an increased level of awareness and education about the space. We want to congratulate them on a successful IPO.

When Prosper pioneered the market more than eight years ago, the scenario was quite different. The idea that people had an alternative to borrowing from banks was novel, and even scary for some. Today, more than 250,000 have borrowed over $2 billion from individual and institutional lenders through the Prosper marketplace. We’re one of the fastest growing credit marketplaces, with loan originations on the platform up 420 percent over the last year (Q3 2014 vs. Q3 2013). It took us eight years to cross the first $1 billion in loans on the Prosper platform (announced in April 2014), and just six months later, in October, we announced the $2 billion milestone. Clearly, marketplace lending is moving into the mainstream as people see it as an easier, more cost-effective alternative to traditional bank lending. This week’s activities only confirm this.

The market is only getting bigger. We may have started out helping cash strapped consumers to consolidate their credit card debt, but today, people are turning to us when they need money for special occasions, home improvements, a second auto, and many other everyday and lifetime events. Online marketplaces have transformed numerous industries — retail, lodging and travel, to name a few. Prosper saw a need for similar innovation in the financial services and lending industry — where borrowers are subject to high interest rates and fees and layers of paperwork, and diversity and yields are limited for investors. By opening up the market and connecting investors and borrowers directly, we smooth out and bring transparency to a seemingly arbitrary process. Competition in the lending market means more options for everyone. And for consumers, more choice means better rates, lower payments, improved customer service and increased ease of use.

We’re excited about 2015. We have more than 200 employees and we’re hiring many more, including recent top executives recruits who bring a wealth of experience and diversity. We raised $70 million this year (nearly $200 million total) to help us target a market that is expected to top $9 billion in loans this year. And we plan to roll out new features and functionality, further supporting mobile and expanding partnerships. We’re laser focused on offering consumers the simplest and most efficient customer experience on a platform they can trust.

As always, thank you to the Prosper community for getting us to where we are today. We are inspired by your stories and look forward to hearing many more in 2015.

Aaron Vermut

CEO

12/11/2014 by in Borrowers, Featured, Lenders, Personal Finance Education

Laying the Foundation for Accelerated Growth

The growth trajectory continues in June with over $27.5 million in loans originating through the platform, setting yet another platform record and bringing the platform total to almost $550 million loan originations since inception. We also broke last month’s record for the number of loans to originate through the platform, setting a new record of 2,694 loans originated in June. This represents over 100% growth from this time last year. 

In June, loan originations split equally between the two pools. In the standard loan pool, we have lowered the maximum bid amount any one lender can invest in a given loan from 75% to 50%. This enables more lenders access to a larger inventory in that pool. As we have highlighted in previous blog posts, our focus this summer is to lay the foundation for accelerated growth in the latter part of 2013. The success of both the whole loan and standard loan pools thus far lines up with this plan. 

As a function of this foundation for the future we have highlighted customer service as a key pillar of our business. In previous months we extended customer service hours and in June we significantly ramped up staff to provide additional support for both borrowers and lenders. We will continue to monitor our customer service levels very closely and provide updates in future posts.

In June, we were thrilled to participate and attend the inaugural peer-to-peer lending conference in New York City, LendIt 2013. LendAcademy’s Peter Renton and his team pulled together a fantastic agenda spurring great dialogue on the massive opportunity in front of us all in this industry. To top it off, Ron Suber, Prosper Marketplace Head of Global Institutional Sales, provided the closing keynote address. Watch Ron’s address here.

We’re not the only ones excited about peer-to-peer lending. Media coverage on peer-to-peer lending is picking up dramatically. We’ve decided to include a news roundup in these monthly updates. Below are some articles that you may find interesting. 

We continue to improve our collection programs on behalf of our lenders. We are very encouraged by the early results and plan on providing a blog post specifically around the topic of collections in the coming weeks when we have more data.

We would like to thank everyone for their involvement on our platform – the amazing growth we have seen the last three months is not possible without you. Please keep the feedback coming, and check back for more good news in the near future.

Aaron Vermut
President, Prosper Funding LLC

07/08/2013 by in Featured, Lenders, Prosper News

RESOLVED: Prosper Third Party Vendor Experiencing Technical Issues, Slowing Pace on June Originations

These issues have been resolved. Please refer to our follow up post here.

**Original update**

We have seen record volume here at Prosper over the past few months and are excited to continue that growth. This week, we are experiencing a limitation with our customer relationship management system. Over the weekend a technical issue developed which is affecting the mechanics of our verification process. We are working closely with our vendor to get this issue resolved as soon as possible. The loans are still coming onto the platform at the expected growth volume for June; however, our verification team’s production has slowed slightly while the issue is addressed. As a result, the pace of June’s origination numbers has also slowed. We want to assure our members that we are on top of the problem and are focused on the quality of originations as well as the volume. We expect originations to return to normal processing when the technical issues are resolved. 

We recognize the inconvenience this causes both borrowers and lenders and will keep Prosper members updated here as progress is made. Please check back for more information.

06/13/2013 by in Borrowers, Featured, Lenders, Prosper News

Prosper Kicks off Summer with New Records, New Office Space and More

The momentum continues at Prosper with our second consecutive record-setting month. With over $25M in loans, May sets a new record for the best month ever in loan originations, bringing the total to more than $525M to cross the platform since inception. 2,436 loans were originated through prosper (the largest loan volume in the platform’s history), averaging $10,278 per loan. This is 23.7% growth over April, 2013 and 95.4% growth year over year from May, 2012 in total dollars loaned. We’ve also more than doubled the platform’s origination total of 6 months ago, achieving an average monthly growth of over 40% over the last 3 months.

During the month of May, Prosper Marketplace, Inc. (“PMI”) welcomed a new member to its executive team. Ken Niewald joins PMI as the incoming Chief Financial Officer. Ken has also been named our Treasurer. Ken brings over 25 years of experience in the financial services industry including his time as partner at Marquis Advisory and Tatum as well as CFO for Wells Fargo Funds Management. Ken joined just as the headquarters moved to a new location in downtown San Francisco. The new headquarters offer some much needed space for PMI’s growing team at a cost savings.

Over the past couple months we have begun reconciling customer data regularly throughout the month rather than at the month end. This has permitted us to move lender statement distribution up from the 11th to the 2nd business day of the following month. We have accomplished this in both April and May, and intend to continue with this new process moving forward.

The month of May also marks our second month of the Whole Loans program. We understand that this program has generated a lot of discussion and comments from our retail lenders. I want to reassure this group that we are committed to creating a place on our platform for both institutional and retail lenders. In May, 54.2% of loan originations came from the standard loan pool while 45.8% came from the whole loan pool. The 54.2% that originated through the standard pool represents more than $13.5M in loans. This number nearly doubles what was originated in loans across the entire platform in January or February of this year, before the introduction of the whole loans program. We are happy with the performance of the Whole Loans program and the capability it provides in enabling a balance between institutional and retail lenders.

With the increased demand from our lender base in May, we recently launched the largest marketing campaign in the platform’s history. Our goal over the summer is to meet new lender demand by maintaining the consistent growth reported in March, April and May of this year. We have mentioned before that we’re looking closely at the borrower experience during onboarding. This is moving along nicely and we should have more progress to report soon.

For those of you following the improvements made to our collections services, we have made some great progress, and will provide a more comprehensive update in the middle of June.

I would like to thank you all again for your ongoing participation in these posts. Please keep the feedback coming!

Aaron Vermut
President, Prosper Funding LLC

06/03/2013 by in Borrowers, Featured, Lenders, Prosper News

 

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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.