Monday, October 1, 2007

Loans From Groups Declining

zcommodore has been monitoring the number of group loans funded vs non-group loans funded in response to Prosper's change in group rewards. A few weeks ago he noted that the ratio was swinging to non-groups:

Back in May/June when I first started checking, the number of "no group" listings at any point in time was around 60%*. After the removal of match rewards in early June along with a few changes relating to the removal of directions on Prosper encouraging borrowers to join groups, I noticed the number was hovering right around 70-72%. This morning, a little over a week after Prosper's change to remove group leader fees, I see the number of no-group listings has risen to 77%.

His latest calculation has things swinging further:

The number of listings, percentagewise, that are now not in a group has increased significantly since then. When the change was first implemented, roughly 70% of all listings were "no group". This morning, I checked again and it had risen to 82%.

Anecdotally, I've been finding the listings to be of lower quality. Correlation or causation - you be the judge.


Anonymous said...

Mike, you can see a chart on this trend here:

Best wishes


Anonymous said...

Note that the posts are actually tracking listings, not loans and that there is nothing about them that counts how many actually turn into loans.

I do like the graph on that the previous comment included.