Prosper adds community page

Since its launch in February of 2006, Prosper has been about people-to-people lending. No middleman. Prosper is the eBay of lending. Prosper empowers individuals by letting them tell their personal stories.

Lately, Prosper has been growing at a rapid rate. Prosper has grown from $57 million in loans, and 270,000 members in May to $66 million in loans and 310,000 members as of June. That’s $9 million in loans and 40,000 new members in one month. That’s about 15% growth per month. If this pace keeps up, in one year, they will have more than $330 million in loans and 1,400,000 members.

Prosper has added yet another powerful feature: a Community page, where people can share their Prosper success stories, and why they use and like Prosper. Here’s one person’s story.

Prosper is a juggernaut that is picking up steam. Rapidly.

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6 Responses to “Prosper adds community page”

  1. Butch Holley Says:

    What the ???? This concept is hard for me to swallow. I understand it, but I can’t see people borrowing that much money from other people without federal backing or insurance.

  2. Morriss Partee Says:

    Hey Butch, I often get that response when I make a presentation that includes what a revolution in the financial world that Prosper is. But this is no longer a “potential” or “what if” or “maybe this will work”. This is happening NOW. Prosper is successful and growing at an amazing rate NOW. They have gone from zero to 310,000 members in less than 18 months! The fact is that loans ARE being funded, and since it is auction style, they are getting funded at better rates than the borrower initially asks for. For example, the woman whose story I linked to in the main post, put her loan up for bid at 22.50%, and it was successfully funded at 18.91%. She received 238 bids to fund her $9500 loan, of which only 104 were successful. That means 134 people WANTED to fund her, but were shut out because they didn’t bid low enough.

    People with money to lend are doing this despite the lack of federal insurance for many reasons. Probably the main reason is that returns far greater than any CD are possible. And to mitigate risk, lenders are encouraged to make many small loans rather than few large loans. Most amounts an individual lender gives to a single borrower are between $50 or $200 per loan. So even if one or two individual loans go delinquent, the lender will still come out ahead of the yield on a CD. Of course lenders can decide to stick to only borrowers with low debt to income ratios, and/or ‘A’ credit grades.

    They’ve got some pretty nifty online tutorials.

  3. rshevlin Says:

    “Since its launch in February of 2006, Propser has been about people-to-people lending. No middleman.”

    No middleman? Then what the hell is Prosper? It’s the middleman. Just a different type of middleman.

  4. Morriss Partee Says:

    No middleman as in the money goes directly from the lender to the borrower and vice-versa. Prosper has no inventory of dollars in the same way that eBay has no inventory. So yes, Prosper is a type of middleman, but this middleman is not stockpiling the inventory in the way that traditional FIs do.

  5. Offering banking text messag… errr, nevermind. « EverythingCU.com World 2.0 Adventure Says:

    […] that’s probably what you thought about P2P lending… who would ever do that? And look at Prosper’s growth rate… at the current rate, the number of members of Prosper would make them the third largest CU […]

  6. Rock and Roll, Baby! « EverythingCU.com World 2.0 Adventure Says:

    […] to the P2P lending concept, know that it is already well-established, and growing rapidly. I will repeat: If Prosper keeps on its current pace of membership growth, by the fourth quarter of this year, it […]

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