|
Post by MoneyThing on Mar 15, 2016 14:48:04 GMT
Afternoon,
We have been discussing internally how we could offer & design a pre-funding feature for the platform if we were to introduce one.
Our primary aim has been to try and make it as simple as possible, similar to how we approached the SM development.
I am happy to share our initial thinking which is a hybrid version to suit our model.
1) Lenders will be given the option to 'subscribe' to loans during the 'Pending' phase (typically 48hrs in advance of launch). [This would work in a similar fashion to the opt-in option for rollover loans.]
2) The option to subscribe will only be offered on certain size loans over £XXX,000.
3) The bid limit would still apply (e.g. 0.5% or 1%).
4) Cleared funds would be required at the time the loan went live (otherwise the bid will be void).
5) In the event of oversubscription, there will be a % reduction in allocation accordingly. (The aim would be for this not to happen as we would look to only offer this feature on loans of a certain size).
This is still work in progress, however would be grateful on any views... might even do a poll later to see whether there is sufficient demand.
Kind regards,
Ed
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Mar 15, 2016 14:58:29 GMT
If bid limits are still set with the aim for loans to take a good while (24 hours or so) to fill, which in turn means anyone pre-funding at the bid limit still gets 100% of their request, then I don't see any major downside to adding this feature, but nor can I see any major benefit. Other than perhaps peace of mind for lenders worried a loan will fill much faster than they expect or likely to be away from an internet connection for more than 24 hours.
However I'd really like to avoid the scenario where we all load cash into our accounts to cover our bids, then have our bids scaled back and have to withdraw whatever is left. That couldn't make your life any easier too!
|
|
Investor
Member of DD Central
Posts: 662
Likes: 590
|
Post by Investor on Mar 15, 2016 14:58:38 GMT
Afternoon, We have been discussing internally how we could offer & design a pre-funding feature for the platform if we were to introduce one. Our primary aim has been to try and make it as simple as possible, similar to how we approached the SM development. I am happy to share our initial thinking which is a hybrid version to suit our model. 1) Lenders will be given the option to 'subscribe' to loans during the 'Pending' phase (typically 48hrs in advance of launch). [This would work in a similar fashion to the opt-in option for rollover loans.] 2) The option to subscribe will only be offered on certain size loans over £XXX,000. 3) The bid limit would still apply (e.g. 0.5% or 1%). 4) Cleared funds would be required at the time the loan went live (otherwise the bid will be void). 5) In the event of oversubscription, there will be a % reduction in allocation accordingly. (The aim would be for this not to happen as we would look to only offer this feature on loans of a certain size). This is still work in progress, however would be grateful on any views... might even do a poll later to see whether there is sufficient demand. Kind regards, Ed Personally I am happy with the status quo and not sure that this adds much in the short term. Only questions is why bother with a bid limit. On the current B*****n L**d loan it would have been good to use a system like this to save playing the FFF after 24 hours. This is of course assuming that everyone gets their fill up to the 0.5% or 1.0%, and it is only spare availability after that group are satisfied which is then % allocated to us greedy people.
|
|
huxs
Member of DD Central
Posts: 300
Likes: 218
|
Post by huxs on Mar 15, 2016 14:58:52 GMT
Hi Ed,
My initial thoughts are what problem is this trying to solve? Is this to help you see demand pre go-live, to help us lenders and remove fastest finger or to reduce the need for lenders to log in at certain times? I m not sure the last two are big enough problems at the moment to warrant a change like this?
Also your approach seems similar to what they tried at Ablrate and that has the problem with money be paid in just to be taken out again when you only get x% of what you transferred.
I say until you have a genuine problem to solve don't change anything.
|
|
|
Post by MoneyThing on Mar 15, 2016 15:20:16 GMT
Good responses - thank you.
Just to add to the mix:
5) In the event of oversubscription, there will be a % reduction in allocation accordingly. (The aim would be for this not to happen as we would look to only offer this feature on loans of a certain size).
Additional comment:
We would have a plan to prevent this - we will display publicly how much has been funded and if it reaches say 80% funded then we could disable the subscribe link. It is highly unlikely event that a large loan is filled before go-live though. (Aim would be to avoid % reduction).
Regards,
Ed
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Mar 15, 2016 15:20:28 GMT
Personally I'd suggest the coding effort be diverted instead to tweaking the existing system so that "top-up" bids can be made (up to the bid limit) within the first 24 hours, not just one bid. I appreciate that you're happy to accept individual requests to do this manually but it would be neater if we could stick extra cash in ourselves (eg. repayments just in from another platform, late sales of other loan parts or interest credited the following morning).
|
|
|
Post by MoneyThing on Mar 15, 2016 15:21:20 GMT
Hi Ed,
My initial thoughts are what problem is this trying to solve? Is this to help you see demand pre go-live, to help us lenders and remove fastest finger or to reduce the need for lenders to log in at certain times? I m not sure the last two are big enough problems at the moment to warrant a change like this?
Also your approach seems similar to what they tried at Ablrate and that has the problem with money be paid in just to be taken out again when you only get x% of what you transferred.
I say until you have a genuine problem to solve don't change anything. (The latter two which I have highlighted)
|
|
star dust
Member of DD Central
Posts: 2,998
Likes: 3,531
|
Post by star dust on Mar 15, 2016 15:41:06 GMT
Good responses - thank you. Just to add to the mix: 5) In the event of oversubscription, there will be a % reduction in allocation accordingly. (The aim would be for this not to happen as we would look to only offer this feature on loans of a certain size).Additional comment: We would have a plan to prevent this - we will display publicly how much has been funded and if it reaches say 80% funded then we could disable the subscribe link. It is highly unlikely event that a large loan is filled before go-live though. (Aim would be to avoid % reduction). Regards, Ed Personally I would be pretty annoyed if I ever got on site before a loan went live to find a 'greyed' out subscribe button. At the moment if I'm unable to get there for the go-live deadline and its all gone then its just c'est la vie. This would just have the effect of moving the deadline 24/48 hrs. Apart from that, I'm inclined to agree with the others, this would just help relieve the 4 p.m. rush, but it isn't going to solve what I think your next problem will be which is over-subscription of even large loans.
|
|
littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
|
Post by littleoldlady on Mar 15, 2016 15:47:23 GMT
I think it's a good idea which combines the best of both systems. It avoids the problems that SS have with pre-funding. Anyone who does not like it does not have to use it, they are no worse off so long as MT judge the limit right. It makes life easier for those who do not spend all day on-line.
One question: if there is some, but not sufficient, cash in the account will the whole bid fail or will it be reduced to the amount of cash?
|
|
jonno
Member of DD Central
nil satis nisi optimum
Posts: 2,742
Likes: 3,137
|
Post by jonno on Mar 15, 2016 16:05:46 GMT
Hi Ed,
My initial thoughts are what problem is this trying to solve? Is this to help you see demand pre go-live, to help us lenders and remove fastest finger or to reduce the need for lenders to log in at certain times? I m not sure the last two are big enough problems at the moment to warrant a change like this?
Also your approach seems similar to what they tried at Ablrate and that has the problem with money be paid in just to be taken out again when you only get x% of what you transferred.
I say until you have a genuine problem to solve don't change anything. (The latter two which I have highlighted) Ed, ironically it would only solve these problems (particularly FFF) if you were to utilise the hybrid system on SMALLER loans. As far as I'm aware,these problems don't really currently exist on the large loans. Why not hold off for now, monitor it and if these problems emerge you've got the basis of a remedy. As I have posted before I'd agree with SteveT re the one bid limitation.
|
|
|
Post by MoneyThing on Mar 15, 2016 16:07:21 GMT
Personally I'd suggest the coding effort be diverted instead to tweaking the existing system so that "top-up" bids can be made (up to the bid limit) within the first 24 hours, not just one bid. I appreciate that you're happy to accept individual requests to do this manually but it would be neater if we could stick extra cash in ourselves (eg. repayments just in from another platform, late sales of other loan parts or interest credited the following morning). Thanks. Will add the 'top-up' development to the list. Regards, Ed.
|
|
registerme
Member of DD Central
Posts: 6,184
Likes: 5,991
|
Post by registerme on Mar 15, 2016 16:29:20 GMT
I agree with jonno in that the main benefit of this would be to enable people not to have to be at their keyboards at loan "go live time". The set of loans, in particular, where pre-funding would mitigate the FFF problem is on smaller loans. No such problem exists with larger loans, and won't until and unless MT starts to see demand massively outstrip supply a la Saving Stream. So, if the dev resource time is available, and if this is a priority, then I'm supportive of it, but I think it needs to be on all loans rather than loans > x.
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Mar 15, 2016 16:49:08 GMT
Not convinced it's broken, but I suppose it might be nice not to have to remember to be there on the dot of 4pm. Yet clearly it would be most beneficial for are those that even with the limits sell out well within the first 24hrs (but these probably aren't what you're targetting anyway?!). I think the only way to avoid lots of transfers in/out due to proportional reductions might be if the pledging closed maybe 6-12hrs before go live so you can tell us our allocations and we can ensure the cash is there in time for the real go live. Without scaling down all it does is move the FFF time. But I think anything with reduced allocations will rapidly lead to gaming even within the bid limits.
I really don't think it's needed (yet), but then I'm lucky enough to be able to generally be available at go-live and get what I want.
|
|
|
Post by MoneyThing on Mar 15, 2016 17:11:55 GMT
Thank you for all your feedback so far - really appreciated.
I will keep this thread open for discussion for a while longer, however it appears that we perhaps will shelve this for the time being.
In the meantime we will work on the 'multiple bids up to the bid limit' & the 'auto-renew' features.
Kind regards,
Ed
|
|
mike
Member of DD Central
Posts: 187
Likes: 121
|
Post by mike on Mar 15, 2016 17:15:00 GMT
Stick with the status quo. MT is growing at a really nice rate in a controlled manner with a high level of customer satisfaction. There will never be a totally perfect solution and trying to engineer one will lead to complexity and sometimes unforeseen consequences.
|
|