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.
2 comments:
Mike, you can see a chart on this trend here:
http://www.wiseclerk.com/reporting-a-percentage_group-l-percentage_group-m-all.html
Best wishes
Claus
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 wiseclerk.com that the previous comment included.
zcommodore
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