Prosper takes a huge move forward with a secondary market


Prosper announced this morning that they will be creating a $500M secondary marketplace for the person-to-person loans they manage.  This will enable lenders to resell loans they have on their books to other investors to free up capital.

Currently, when you lend money on Prosper, it is lent directly to a person, unlike Zopa which uses “risk buckets”.  That lent money is then locked up for the entire term of every three year loan Prosper does.  This move will enable lenders to act even more like a bank by enabling them to free up capital by selling off old loans.

Currently, many banks (and CU’s) originate mortgages, generate the mortgage fee and sell the loan off to another investor.  Banks and CU’s also can sell participations to one another in which on FI would own 40% of a loan and the other 60%.  But the two FI’s involved in the participation could sell chunks of their investment to each other or other investors if additional capital was needed.

This is a huge step for p2p lending and should attract many more participants into the arena.

Yahoo Finance Press Release

SEC Filing

TechCrunch Coverage

Simple and Clean

Imagine if you could make a credit union web site as simple (and gorgeous) as Snooth.  A real simple home banking login in the top right corner, and the massive search box in the middle.  Some CU’s are using virtual assistants (like Julie at Coast Capital) and some CU’s are using voice recognition for telephone banking.  Why not take that concept to your website with a search box?  Your members could search for locations or open new account or history or CEO and hopefully find what they are looking for.  Snooth even has, "Can I see some examples" to help those out who would have a hard time using a search box to find what they are looking for.  I’m by no means a web design pro, but this seems like it would make a killer CU site!

More user generated CU ads

 Fairfax County Community Credit Union has launched a new campaign to have GenYer’s create a 30 second TV spot about why their GenY checking fits their lifestyle.  They are giving away $1,000 and an iPhone to the winner.  All submissions get posted up on their YouTube site and you get to vote on their website.  Forum CU has done a good job with some ads featuring members and I think have had pretty good luck with them so I’ll be interested to see Fairfax’s results!

Also of interest, the campaign appears to be ran by CavionPlus, now part of Harland.  I wonder if they have a prepackaged "GenY" marketing campaign…


Names and Age

When I’m bored, I randomly snoop through 5300 data to find interesting things.  If you go through the list, you’d be really surprised what you can find.  Namely, no pun intended, the names of the CEO’s.  They all seem like "old" names.  Yes, that’s a gross generalization, but Kenneth, Millard, Wendell, Gerald, and Richard all strike me as older names.  I looked around on the internet for a source to find the average age of a name.  Something like the average Marjorie (thanks grandma) is 71 and the average Ellie is 15 but had no luck.  Just my random observation for the week.  I wonder if you could gauge a CEO’s propensity for retirement by their name…

There were a few Doug’s, Ron’s, and even a Brent, but I tried to avoid names of people I know…

In transit to Forum’s Partnership Symposium

Airports with free wifi are cool.  Portland has it and apparently Vegas has it.  I’ve been gone all this past weekend and now I’m getting to catch on the blogosphere.

Flying Southwest today for the first time and it is pretty interesting the different demographic that flies on Southwest.  They seem to be very similar to CU members….  More to come from the conference later…