sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,426
Likes: 1,211
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AE497
Jul 28, 2016 23:10:07 GMT
Post by sqh on Jul 28, 2016 23:10:07 GMT
I like AE loans, but I'm concerned about the amount of ongoing auditing required. AE say they will regularly update the list of vehicles in each loan, but who is verifying this. There seems to be a huge reliance on AE honesty to provide correct information. This won't be a problem while the company is profitable, but how many times do we see unscrupulous behaviour when a company gets into trouble.
My analogy: I once worked for a company who outsourced their network management to an external company. I was asked to set up a firewall so only management traffic was allowed through to the external company. When I asked my manager who would maintain the firewall, he scratched his chin, consulted the internal regulatory team, and came back with the answer, the external company manage our devices so they should manage the firewall.
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archie
Posts: 1,838
Likes: 1,842
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Post by archie on Jul 29, 2016 6:35:45 GMT
While I am very happy with near everything to do with MT, they could really do with more borrowers. Which is why I currently have twice as much in SS. Very happy with MT, I currently have three times as much with MT as SS
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Post by MoneyThing on Jul 29, 2016 7:05:08 GMT
I like AE loans, but I'm concerned about the amount of ongoing auditing required. AE say they will regularly update the list of vehicles in each loan, but who is verifying this. There seems to be a huge reliance on AE honesty to provide correct information. This won't be a problem while the company is profitable, but how many times do we see unscrupulous behaviour when a company gets into trouble. My analogy: I once worked for a company who outsourced their network management to an external company. I was asked to set up a firewall so only management traffic was allowed through to the external company. When I asked my manager who would maintain the firewall, he scratched his chin, consulted the internal regulatory team, and came back with the answer, the external company manage our devices so they should manage the firewall. Morning sqh, I would just like to mention that MoneyThing audits AE every month on-site at their base. We usually spend the whole day there going through their mgmt. accounts, bank statements, loan documents and stock (on site cars under the stocking facility), as well as check the cars out on HP by seeing where they are located by their GPS tracking. I am pleased to report that has not been one item that has caused us concern and they are showing a healthy balance sheet with stable growth. They continue to prove to us that they maintain a very slick and professional business run by a competent team throughout all their departments. Our next visit is next week. Kind regards, Ed
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AE497
Jul 29, 2016 9:52:37 GMT
Post by GSV3MIaC on Jul 29, 2016 9:52:37 GMT
While I am very happy with near everything to do with MT, they could really do with more borrowers. Which is why I currently have twice as much in SS. Very happy with MT, I currently have three times as much with MT as SS I'd LIKE to have .. but being around at the right time often enough is a drag on my portfolio building activity. 8<. Pretty please can I have a pre-fund facility .. or permission to unleash a bid-bot. 8>.
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archie
Posts: 1,838
Likes: 1,842
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AE497
Jul 29, 2016 9:58:40 GMT
Post by archie on Jul 29, 2016 9:58:40 GMT
Very happy with MT, I currently have three times as much with MT as SS I'd LIKE to have .. but being around at the right time often enough is a drag on my portfolio building activity. 8<. Pretty please can I have a pre-fund facility .. or permission to unleash a bid-bot. 8>. NO you're not stealing my investment opportunities
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oldgrumpy
Member of DD Central
Posts: 5,087
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Post by oldgrumpy on Jul 29, 2016 9:59:31 GMT
I like AE loans, but I'm concerned about the amount of ongoing auditing required. AE say they will regularly update the list of vehicles in each loan, but who is verifying this. There seems to be a huge reliance on AE honesty to provide correct information. This won't be a problem while the company is profitable, but how many times do we see unscrupulous behaviour when a company gets into trouble. My analogy: I once worked for a company who outsourced their network management to an external company. I was asked to set up a firewall so only management traffic was allowed through to the external company. When I asked my manager who would maintain the firewall, he scratched his chin, consulted the internal regulatory team, and came back with the answer, the external company manage our devices so they should manage the firewall. Morning sqh, I would just like to mention that MoneyThing audits AE every month on-site at their base. We usually spend the whole day there going through their mgmt. accounts, bank statements, loan documents and stock (on site cars under the stocking facility), as well as check the cars out on HP by seeing where they are located by their GPS tracking. I am pleased to report that has not been one item that has caused us concern and they are showing a healthy balance sheet with stable growth. They continue to prove to us that they maintain a very slick and professional business run by a competent team throughout all their departments. Our next visit is next week. Kind regards, Ed Wow! That's impressive! Worth more than just a "like"!
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AE497
Jul 29, 2016 10:26:23 GMT
Post by MoneyThing on Jul 29, 2016 10:26:23 GMT
Very happy with MT, I currently have three times as much with MT as SS I'd LIKE to have .. but being around at the right time often enough is a drag on my portfolio building activity. 8<. Pretty please can I have a pre-fund facility .. or permission to unleash a bid-bot. 8>. Oh ok.... after resisting/ignoring/dodging this question on a number of occasions, I will have a discussion with The Shuang to ascertain the viability of a pre-fund facility. I still have my reservations so no promises, but I promise to at least explore the idea. I would just say, using these loans as an example, they currently last at least 24hrs under the 1% bid limit (approx. 70% filled at 24hrs). My belief is that with a pre-funding model, lenders will likely bid a higher amount thinking they can just sell any surplus later on the SM. This would result in lenders getting less then they pre-funded which would result in them upping their bid in future to achieve the allocation they wished (compounding the issue). For lenders, this would also create additional work with respect to deposits & withdrawals in order to deposit the pre-fund amount, and then withdrawal the surplus afterwards (we would/could not introduce an INPL equivalent). These are just a couple of immediate thoughts on the subject, but I acknowledge that many of you will have a better feel for this from a user perspective. If you would like to run a poll, feel free to do so. Kind regards, Ed
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archie
Posts: 1,838
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Post by archie on Jul 29, 2016 10:34:28 GMT
I'd LIKE to have .. but being around at the right time often enough is a drag on my portfolio building activity. 8<. Pretty please can I have a pre-fund facility .. or permission to unleash a bid-bot. 8>. Oh ok.... after resisting/ignoring/dodging this question on a number of occasions, I will have a discussion with The Shuang to ascertain the viability of a pre-fund facility. I still have my reservations so no promises, but I promise to at least explore the idea. I would just say, using these loans as an example, they currently last at least 24hrs under the 1% bid limit (approx. 70% filled at 24hrs). My belief is that with a pre-funding model, lenders will likely bid a higher amount thinking they can just sell any surplus later on the SM. This would result in lenders getting less then they pre-funded which would result in them upping their bid in future to achieve the allocation they wished (compounding the issue). For lenders, this would also create additional work with respect to deposits & withdrawals in order to deposit the pre-fund amount, and then withdrawal the surplus afterwards (we would/could not introduce an INPL equivalent). These are just a couple of immediate thoughts on the subject, but I acknowledge that many of you will have a better feel for this from a user perspective. If you would like to run a poll, feel free to do so. Kind regards, Ed My view, the only loans large enough for pre-funding last long enough not to need it. I prefer to know in advance exactly how much funding I need for each loan rather than some randomly allocated amount. Overbidding just makes the situation worse.
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Post by Butch Cassidy on Jul 29, 2016 10:45:19 GMT
I'd LIKE to have .. but being around at the right time often enough is a drag on my portfolio building activity. 8<. Pretty please can I have a pre-fund facility .. or permission to unleash a bid-bot. 8>. Oh ok.... after resisting/ignoring/dodging this question on a number of occasions, I will have a discussion with The Shuang to ascertain the viability of a pre-fund facility. I still have my reservations so no promises, but I promise to at least explore the idea. I would just say, using these loans as an example, they currently last at least 24hrs under the 1% bid limit (approx. 70% filled at 24hrs). My belief is that with a pre-funding model, lenders will likely bid a higher amount thinking they can just sell any surplus later on the SM. This would result in lenders getting less then they pre-funded which would result in them upping their bid in future to achieve the allocation they wished (compounding the issue). For lenders, this would also create additional work with respect to deposits & withdrawals in order to deposit the pre-fund amount, and then withdrawal the surplus afterwards (we would/could not introduce an INPL equivalent). These are just a couple of immediate thoughts on the subject, but I acknowledge that many of you will have a better feel for this from a user perspective. If you would like to run a poll, feel free to do so. Kind regards, Ed Please, please, please KISS - Whilst The Shuang is a fantastic asset & I'm sure could develop any amount of bells & whistles, the present system works so don't be tempted to complicate it.
My only caveat being, on going monitoring of the bid limits to allow a minimum 24 hr window for all interested investors to have a bid, if you can't get access during 24 hrs or pre arrange MT to place a bid for you then it can't be a high enough priority for you (sorry but that seems a fair enough opportunity to me).
MT are doing most things right, unlike quite a few of their competitor platforms, so please stick to the knitting
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littleoldlady
Member of DD Central
Running down all platforms due to age
Posts: 3,017
Likes: 1,835
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AE497
Jul 29, 2016 11:38:45 GMT
Post by littleoldlady on Jul 29, 2016 11:38:45 GMT
Those who like the current system don't want any change. No surprise there. Those who compare MT with SS should remember that SS had INPL before prefunding and found it impossible to withdraw INPL, which really screws up prefunding. All MT need to do is introduce prefunding without INPL and have a time restriction on selling loans on the SM. Could even have a restriction on the percentage of available funds which could be prefunded. MT are fortunate in following SS and they can copy the bits that work and learn from SS's mistakes.
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SteveT
Member of DD Central
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Post by SteveT on Jul 29, 2016 11:45:11 GMT
Ed, I think you're completely right in anticipating the problems that adding a pre-fund capability will lead to. The bigger loans already last 24 hours or longer and so won't benefit from a pre-fund capability. The small, high-demand loans will simply see availability swamped by lender pre-fund demand, so those with the deepest pockets will win by grabbing the maximum available and selling excess later.
If people genuinely dislike the need to spend a couple of minutes logging in after a new loan launches to place their bid, how about the following: Keep the current bid limits approach as now but offer a "convenience bidding" option, where lenders indicate in advance how much they want to invest in the loan. These "convenience bids" are then entered by MT on lenders' behalf, say, 1 hour after a loan has gone live so that the majority of MT lenders aren't disadvantaged. This won't make it any more likely that people will get a piece of high-demand, small-availability renewals but it will still mean they can invest in a larger new loan whilst they're at work / on a plane / asleep in a different time-zone.
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james
Posts: 2,205
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AE497
Jul 29, 2016 12:44:00 GMT
Post by james on Jul 29, 2016 12:44:00 GMT
I would just say, using these loans as an example, they currently last at least 24hrs under the 1% bid limit (approx. 70% filled at 24hrs). My belief is that with a pre-funding model, lenders will likely bid a higher amount thinking they can just sell any surplus later on the SM. This would result in lenders getting less then they pre-funded which would result in them upping their bid in future to achieve the allocation they wished (compounding the issue). In the MoneyThing context the bid limit should mitigate that to some degree, since it's only the portion not covered by bidding within the limit that would be at stake. So the result might just be increasing the number of people who are able to participate in the post-limit process, since it wouldn't tend to happen over a few seconds at the start of the second day any more. That's pretty different from the SavingStream process where there is no bid cap so the whole allocation of the loan is at stake. This might actually increase certainty without too much in the way of negative effects, since people could bid in advance for the bid limit amount. That would allow the bid limit to be reduced if necessary based on demonstrated rather than estimated demand.
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jonah
Member of DD Central
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AE497
Jul 29, 2016 14:03:31 GMT
Post by jonah on Jul 29, 2016 14:03:31 GMT
Loans that last 25+ hrs aren't the issue... They grant everyone a first slice at 1% or 0.5% and some more people a mop up slice.
Loans lasting less than 25Hrs are though. 24-25 means the post bid restrictions lifting was a stampede. Sub 1 minute means demand outstrips supply and people aren't getting what they would like. An autobid for these deferred by 5mins would not really suit many people but could irritate a lot!
Personally I've not bothered for a handful of loans due to thinking that as I didn't have guaranteed high speed access there was much point in rushing just to miss.
I agree with KISS though, be careful not to break that which is only partially broken. A prefund process for small to medium which currently go in 1 min to 1 hr could be an improvement.
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woodie
Member of DD Central
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AE497
Jul 29, 2016 15:22:24 GMT
Post by woodie on Jul 29, 2016 15:22:24 GMT
I'm not invested in platforms with pre-funding so cannot speak from experience but anything that could be used to game the system should be discouraged.
If it ain't broke ( and it isn't ) ..
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archie
Posts: 1,838
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Post by archie on Jul 29, 2016 15:33:05 GMT
I'm not invested in platforms with pre-funding so cannot speak from experience but anything that could be used to game the system should be discouraged. If it ain't broke ( and it isn't ) .. Totally agree. I'd rather take my chances at 4pm, and possibly get nothing, than end up with 1 or 2 pound loan parts. Pre-funding would be a disaster on the small loans and unnecessary on the larger loans.
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