What ever happened to Peer-to-Peer lending?

[james.hendrickson]

I was with Lending Club since it started. I averaged around 9% interest, but then they got bigger and started "packaging" their better loans and selling them and leaving the lower-rated ones for their loyal customers.

I just received an email today that Lending Club is ending their Notes and peer-to-peer lending as they have bought a bank and are going in a different direction.

frugal saver - can you post the email? This seems newsworthy for investors.

[frugal saver]

frugal saver - can you post the email? This seems newsworthy for investors.

Here is a direct link to the notice on their website, which is exactly what I received.

https://help.lendingclub.com/hc/en-us/articles/360050574891-Important-Updates-to-the-LendingClub-Notes-Platform?utm_source=internal&utm_medium=email&utm_campaign=inv_txn

[Captain Save]

I wonder how covid has affected the numbers....

[~bs]

Closing an Important Chapter—Notes Platform Retiring on December 31, 2020

As we move towards becoming a full-spectrum fintech marketplace bank, we have looked closely at our current and future product suite and have started development of new products to help our members keep more of what they earn and earn more on what they keep. Unfortunately, under a prospective banking framework, it is not economically practical for LendingClub to continue to offer Notes. So, we had to make the difficult decision to retire the Notes platform effective December 31, 2020.

This will not affect the existing Notes you own but means that the last day to purchase Notes will be December 27. In addition, we will no longer accept new accounts effective October 8 and we are targeting to retire the mobile app on November 10.

[~bs]

Not sure if this means they're only ending the P2P trading platform or all P2P loan origination altogether.. It seems like the latter.

I'd imagine P2P lending has taken quite a hit during this crisis, as they did stop selling various loan types, probably because of extremely high default rates.