MyC4

Classifying p2p lending services

wiseclerk

More and more p2p lending services are launching, each catering to different markets and different target audiences. Some derive more features from "ancestors" Prosper or Zopa, some less.

All follow the aim to allow lenders to directly lend money to borrowers without a bank acting as intermediary. This aim is sometimes not pursued strictly to the point. Smava actually partnered with a bank to comply with regulation, Zopa US partnered with credit unions, but nevertheless it serves as comprehensive definition.

Dividing p2p lending services in categories could follow several possible factors:

  • price building mechanism (auction/non-auction; interest set by platform/by borrower/by lender)
  • purpose of loan (private/business/both)
  • social lending vs. lending for profit

I think the last factor is most useful for the definition of categories. It affects all parts of the service from marketing to operations. The differentiation is in the objective the majority of the lenders had when selecting the platform. Were they attracted by the motivation to help an individual through a loan or by the motivation to earn interest? Continue reading →

Impact of Kenya’s crisis on p2p lending operations

wiseclerk

The unrest after elections in Kenya might also to some degree impact operations of Kiva and MyC4 which are funding p2p loans in Kenya. As Jessica Jackley Flannery of Kiva reports operations of the local MFIs in Kenya have been interrupted:

The situation on the ground appears to vary widely from community to community. However, one consistent report is that business is not operating as usual; most MFI operations have been interrupted or stopped altogether in the last week, whether due to imminent danger in their region or the general disruption in daily life caused by turbulence elsewhere. Thankfully, as far as we know, none of our partner MFI staff have been hurt. Unfortunately, due to the magnitude of the situation, we anticipate that many entrepreneurs will have been displaced, hurt, or otherwise adversely affected.

Please be patient as this situation unfolds. We expect possible disruptions in our Kenya MFI partners’ operations as the staff on the ground recover.

On MyC4.com the local provider Growth Africa Capital writes from Nairobi, Kenya:

It probably hasn't escaped your attention that the Kenyan elections didn't go a smoothly as we had all hoped and has resulted in a lot of unrest, violence, destruction and even deaths.

As I type (noon, 2nd January) things are slowly getting back to normal in Nairobi. The situation is also improving in Mombasa, though we are yet to get the same good news from the central Rift Valley, Western and Nyanza provinces.

We should have a full overview in terms of the wether any of the opportunities funded via MyC4 has been affected by the unrest by Monday (7th January).

Once safe to do so, we will look at the areas in Nairobi affected by the unrest and wether affordable funding will make a difference in the affected people's lives in terms of re-establishing their businesses. So stay tuned for opportunities that will help get Kenya and its enterprising people back to normal – your investment may make a huge difference.

While the situation in Kenya is somewhat unclear, the crisis is already impacting Uganda's economy. MyC4 only recently started in Kenya. The majority of loans are to entrepreneurs in Uganda. 
Ronald Isabirye of the local provider in Kampala, Uganda about the consequences: Continue reading →

Review of peer to peer lending developments in 2007

wiseclerk

2007 was an exciting and eventful year in the development of peer to peer lending. Looking back these were the highlights:

I will write another article on which trends to expect in p2p lending in 2008.

New MyC4 release

wiseclerk

Today a new MyC4 release went online. The new version allows multiple standing orders which can be targeted by country, provider and/or industry of the borrower. There are several small improvements in usability, e.g. display of borrower APR.

MyC4 users have transfered 507,000 Euro in funds, but so far only 214,000 Euro of those have been loaned. Demand in loan opportunities is lagging behind investor's cash looking for investments. The majority of lenders (investors) still is Danish – MyC4 is located in Denmark, but the number of investors in other countries is rising.

So far I am satisfied with MyC4. I have invested in more than 50 active loans – true microloans – sometimes my share is as low 10 Euro – and so far everything is going smooth. Another 16 bids are on open listing opportunities.

MyC4 adds Kenya

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Today the first loan application of a borrower from Kenya was uploaded at MyC4.com. Rose Njeri runs a toys and decoration shop and wants a 2000 Euro loan to buy more products in Dubai. The loan term is 9 months, the maximum wanted interest rate is 15.5% (but currently loans at MyC4 all close at lower lender interest rates). Kenya is the third country MyC4 services after Uganda and Ivory Coast. The local partner (provider) in Kenya is Growth Africa.