Posted on June 13th, 2013
We have seen record volume here at Prosper over the past few months and are excited to continue that growth. This week, we are experiencing a limitation with our customer relationship management system, Salesforce. Over the weekend a technical issue developed on Salesforce’s side which is affecting the mechanics of our verification process. We are working closely with Salesforce to get this issue resolved as soon as possible. The loans are still coming onto the platform at the expected growth volume for June; however, our verification team’s production has slowed slightly while the Salesforce issues are addressed. As a result, the pace of June’s origination numbers has also slowed. We want to assure our members that we are on top of the problem and are focused on the quality of originations as well as the volume. We expect originations to return to normal processing when the Salesforce issues are resolved.
We recognize the inconvenience this causes both borrowers and lenders and will keep Prosper members updated here as progress is made. Please check back for more information.
Posted on June 3rd, 2013
The momentum continues at Prosper with our second consecutive record-setting month. With over $25M in loans, May sets a new record for the best month ever in loan originations, bringing the total to more than $525M to cross the platform since inception. Prosper originated 2,436 loans (the largest loan volume in the platform’s history), averaging $10,278 per loan. This is 23.7% growth over April, 2013 and 95.4% growth year over year from May, 2012 in total dollars loaned. We’ve also more than doubled the platform’s origination total of 6 months ago, achieving an average monthly growth of over 40% over the last 3 months.
During the month of May, Prosper Marketplace, Inc. (“PMI”) welcomed a new member to its executive team. Ken Niewald joins PMI as the incoming Chief Financial Officer. Ken has also been named our Treasurer. Ken brings over 25 years of experience in the financial services industry including his time as partner at Marquis Advisory and Tatum as well as CFO for Wells Fargo Funds Management. Ken joined just as the headquarters moved to a new location in downtown San Francisco. The new headquarters offer some much needed space for PMI’s growing team at a cost savings.
Over the past couple months we have begun reconciling customer data regularly throughout the month rather than at the month end. This has permitted us to move lender statement distribution up from the 11th to the 2nd business day of the following month. We have accomplished this in both April and May, and intend to continue with this new process moving forward.
The month of May also marks our second month of the Whole Loans program. We understand that this program has generated a lot of discussion and comments from our retail lenders. I want to reassure this group that we are committed to creating a place on our platform for both institutional and retail lenders. In May, 54.2% of loan originations came from the standard loan pool while 45.8% came from the whole loan pool. The 54.2% that originated through the standard pool represents more than $13.5M in loans. This number nearly doubles what was originated in loans across the entire platform in January or February of this year, before the introduction of the whole loans program. We are happy with the performance of the Whole Loans program and the capability it provides in enabling a balance between institutional and retail lenders.
With the increased demand from our lender base in May, we recently launched the largest marketing campaign in the platform’s history. Our goal over the summer is to meet new lender demand by maintaining the consistent growth reported in March, April and May of this year. We have mentioned before that we’re looking closely at the borrower experience during onboarding. This is moving along nicely and we should have more progress to report soon.
For those of you following the improvements made to our collections services, we have made some great progress, and will provide a more comprehensive update in the middle of June.
I would like to thank you all again for your ongoing participation in these posts. Please keep the feedback coming!
President, Prosper Funding LLC