New Borrower Product, Performance Reporting & Revenue Split
Sept 20, 2017 10:44:54 GMT
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Post by WestonKevTMP on Sept 20, 2017 10:44:54 GMT
Comrades,
The Money Platform is making this week a number of changes to the site, and more importantly to the borrower product. In addition, as requested, we will be improving portfolio and individual lender performance reporting. Here is the full email that was sent to all our registered lenders;
Dear Lenders,
We are writing to inform you of some changes we have been working on, that are set to go live in the coming days.
These changes are being made to improve the sustainability of the platform, to enable us to acquire the best quality borrowers onto the platform, and to deliver a more consistent return to our lenders.
Please see the changes that are being implemented below:
1. We are changing the way the market is going to operate. There will no longer be rates for lenders to choose from. Based on our research into loan performance and desired lender returns, rates will now be predetermined for each particular market.
2. The 8 and 12 week loans are now going to be instalment loans. Borrowers will now be repaying the 8 and 12 week loans in equal monthly instalments. Lenders will receive their share of these repayments on a monthly basis.
3. There will no longer be a three week loan market.
4. All lender offers previously held in markets and rates that no longer exist, will have these offers automatically moved to the nearest available offer for that desired loan amount. The queue will be formed in the same order in which lenders made their original offer.
5. The revenue split between The Money Platform and our lenders is changing to a 50%/50% split of the interest payable by the borrower. Lenders will now receive their principal, plus 50% of the interest payable by the borrower when a loan is successfully repaid. All loans issued prior to the introduction of the new product will mature on the previous revenue split agreed at loan inception. The new revenue split will only apply to loans issued after the release of the new products.
6. The new rates, products, and revenue split means that we will now forecast a default rate of 15%, and an estimated annual return for our lenders of 10%. A reminder that a default is not the percentage of borrowers that miss payments, but the final loss rate after all collections avenues have closed and repayment plans have had time to complete.
7. A large number of our lenders have requested a transparent view of the performance of the entire loan book. For this reason, we have developed a “stats” page so that lenders can view the performance of the entire TMP portfolio, not just their own loans. There will now be a “stats” button available to each lender which will show the performance of the whole portfolio for every loan issued from the release of the new products highlighted above onwards.
The above changes will all go live in the coming days. We believe that these changes will benefit our borrowers, our lenders, and The Money Platform. We believe that borrowers will find the longer term loans more manageable with the new instalment format, lenders will benefit from a more consistent result, and the company can benefit from the change in revenue share to spend more funds acquiring good quality borrowers and on enhanced credit checking abilities.
We anticipate that there will be numerous questions that come back to us on the above changes. Rather than responding to everyone individually, we will collate all resulting questions, and send a follow up to all lenders. In the coming months, we anticipate releasing further upgrades to the platform; and we will endeavour to keep our lenders informed as we approach the release of these upgrades.
We hope that you have enjoyed using the platform so far. We will continue working to improve the experience for all of our lenders.
Kind Regards,
The Money Platform Team
The Money Platform is making this week a number of changes to the site, and more importantly to the borrower product. In addition, as requested, we will be improving portfolio and individual lender performance reporting. Here is the full email that was sent to all our registered lenders;
Dear Lenders,
We are writing to inform you of some changes we have been working on, that are set to go live in the coming days.
These changes are being made to improve the sustainability of the platform, to enable us to acquire the best quality borrowers onto the platform, and to deliver a more consistent return to our lenders.
Please see the changes that are being implemented below:
1. We are changing the way the market is going to operate. There will no longer be rates for lenders to choose from. Based on our research into loan performance and desired lender returns, rates will now be predetermined for each particular market.
2. The 8 and 12 week loans are now going to be instalment loans. Borrowers will now be repaying the 8 and 12 week loans in equal monthly instalments. Lenders will receive their share of these repayments on a monthly basis.
3. There will no longer be a three week loan market.
4. All lender offers previously held in markets and rates that no longer exist, will have these offers automatically moved to the nearest available offer for that desired loan amount. The queue will be formed in the same order in which lenders made their original offer.
5. The revenue split between The Money Platform and our lenders is changing to a 50%/50% split of the interest payable by the borrower. Lenders will now receive their principal, plus 50% of the interest payable by the borrower when a loan is successfully repaid. All loans issued prior to the introduction of the new product will mature on the previous revenue split agreed at loan inception. The new revenue split will only apply to loans issued after the release of the new products.
6. The new rates, products, and revenue split means that we will now forecast a default rate of 15%, and an estimated annual return for our lenders of 10%. A reminder that a default is not the percentage of borrowers that miss payments, but the final loss rate after all collections avenues have closed and repayment plans have had time to complete.
7. A large number of our lenders have requested a transparent view of the performance of the entire loan book. For this reason, we have developed a “stats” page so that lenders can view the performance of the entire TMP portfolio, not just their own loans. There will now be a “stats” button available to each lender which will show the performance of the whole portfolio for every loan issued from the release of the new products highlighted above onwards.
The above changes will all go live in the coming days. We believe that these changes will benefit our borrowers, our lenders, and The Money Platform. We believe that borrowers will find the longer term loans more manageable with the new instalment format, lenders will benefit from a more consistent result, and the company can benefit from the change in revenue share to spend more funds acquiring good quality borrowers and on enhanced credit checking abilities.
We anticipate that there will be numerous questions that come back to us on the above changes. Rather than responding to everyone individually, we will collate all resulting questions, and send a follow up to all lenders. In the coming months, we anticipate releasing further upgrades to the platform; and we will endeavour to keep our lenders informed as we approach the release of these upgrades.
We hope that you have enjoyed using the platform so far. We will continue working to improve the experience for all of our lenders.
Kind Regards,
The Money Platform Team