Video on the Globefunder.com business model.
Part 1:
Part 2:
Globefunder team says it is aiming for millions of loans requiring full scalability of system.
Month: August 2007
Smava video
German Smava opens to lower credit grades
The German site for social lending Smava.de today allowed borrowers of the lower credit grades G and H to participate. Previously only borrowers of credit grades A through F could participate. According to information published by Smava, 80% of the German population have credit grades in the range A-F, while credit grade G accounts for 10% and credit grade H accounts for 5% of the population.
This move is contrary to the development at Prosper.com which started with a very broad range of credit grades and only later restricted borrower access tighter.
However Smava, so far has experienced not one late payment. Three payment cycles have been completed with 100% of borrowers paying on time.
Other changes at the Smava site today included a lower minimum bid of 250 Euro (down from 500 Euro) and a higher interest rate ceiling (maximum interest rate 18%; up from 15%).
Prosper to enter Japan and Asia
Prosper.com announced in a press release, that Prosper will expand into Japan and other Asian markets (countries were not disclosed). Excerpt from Prosper press release:
Prosper and SBI Holdings to Establish Prosper in Japan and Other Asian Countries
San Francisco – August 6, 2007 – Prosper (www.prosper.com), America’s first people-to-people lending marketplace, and SBI Holdings, Inc., a holding company for SBI Group, the financial innovation leader of Japan, today announced an agreement to form a joint venture to facilitate the launch of Prosper in Japan and explore other Asian markets.
“As Prosper takes the first step toward expanding to Japan, we’re confident SBI is the optimal partner to navigate the regulatory landscape and successfully launch and operate the Prosper marketplace in the region,” said Chris Larsen, co-founder and Chief Executive Officer of Prosper.
“With over $78 million in funded loans and more than 360,000 members, Prosper is the leading person-to-person lending marketplace,” said Hayato Kameta, incoming Chief Executive Officer of the joint venture. “SBI Group’s experience and resources in both the Internet and financial sectors, combined with the vision and infrastructure of Prosper, makes this joint venture well positioned to develop and execute a business plan which meets the regulatory and business environment in Japan and other Asian countries.”
SBI Group has a market capitalization in excess of $8 billion and consists of 65 consolidated subsidiaries and 12 affiliated companies, including 9 public companies. SBI online finance business include SBI E*Trade Securities Co., Ltd., Morningstar Japan K.K. and E-LOAN as a business unit of SBI Holdings. To find out more about SBI Holdings, Inc., visit www.sbigroup.co.jp/english/.
Duck9 – p2p lending for college students
Duck9.com is positioning itself as a peer to peer lending service for college students. Lenders can invest a maximum of $10000. In the video below Duck9 founder Larry Chiang explains the business model and the benefits for lenders and borrowers.
The video is from October 2006. It might be a bit outdated. While Chiang says in the video that lenders receive a free $100 to lend, the site currently states: "NOTE: there is a SIGNIFICANT waitlist to be a lender. Money isn't accepted while you're on the waitlist".