littleoldlady
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Post by littleoldlady on Aug 17, 2016 10:45:51 GMT
Ed, I am not sure quite how your business works. Would there be any advantage to you in encouraging uninvested funds on your platform by paying interest (assuming that your current regulatory approval permits this.)? These funds would be at risk only to platform failure rather than any particular loans. If there is any merit in this idea what sort of rate could you offer? We could run a poll to get an idea of demand before you let Shuang loose.
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SteveT
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Post by SteveT on Aug 17, 2016 11:03:31 GMT
Ed, I am not sure quite how your business works. Would there be any advantage to you in encouraging uninvested funds on your platform by paying interest (assuming that your current regulatory approval permits this.)? These funds would be at risk only to platform failure rather than any particular loans. If there is any merit in this idea what sort of rate could you offer? We could run a poll to get an idea of demand before you let Shuang loose. I believe your suggestion wouldn't be permitted without Ed first gaining authorisation from the Prudential Regulation Authority to start accepting consumer deposits (ie. become a bank) AC currently work around this with their QAA by structuring it as another P2P lending account, albeit one that continually holds a large proportion of lenders' funds as uninvested cash to provide withdrawal liquidity.
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Post by MoneyThing on Aug 17, 2016 12:59:58 GMT
Ed, I am not sure quite how your business works. Would there be any advantage to you in encouraging uninvested funds on your platform by paying interest (assuming that your current regulatory approval permits this.)? These funds would be at risk only to platform failure rather than any particular loans. If there is any merit in this idea what sort of rate could you offer? We could run a poll to get an idea of demand before you let Shuang loose. BankThing.... quite like the sound of that!* As SteveT commented, what you have described I think firmly falls under 'banking' with respect to a deposit/savings accounts type product. Certainly an interesting idea and I can fully appreciate where you are coming from. I have seen on other platforms where they have come up with some really innovative ways around trying to capture this sort of audience (i.e. the 'invest & forget' type of lender...with some sort of liquidity offering). I would admit that we have perhaps not been very innovative around this aspect to date. Whilst we have a number of ideas (also some other features we are keen to introduce), we have held back on introducing anything until such time as we have our core offering authorised. It may transpire we have been overly cautious, however I have always taken the stance of only introducing something new/innovative which we know we can retain, rather than having to subsequently withdraw a service/feature later down the line that has been introduced. Hopefully we (and other firms), are not too far away now from full authorisation and we will then have a much better idea of what we can potentially introduce for 'phase 2'. I would also mention that I believe that we probably hold a lot less client money than most firms (in proportion to loan book size). By processing deposit/withdrawal requests promptly and also providing a fair degree of certainty as to what amounts lenders need to transfer in order to participate in loan offerings, many active lenders are able to (and do), maintain a £0 'available balance' rather than have funds sitting idle. Kind regards, Ed *[For the avoidance of doubt, MoneyThing is not a bank and is not authorised under Prudential Regulation Authority to accept consumer deposits and therefore MoneyThing lenders are not covered under the Financial Services Compensation Scheme]
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n
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Yet another Nick
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Post by n on Aug 17, 2016 16:46:50 GMT
One of the things I love about MT is the simplicity and transparency. I am winding down my AC account because, among other things, the bells and whistles don't work the way I thought they were going to (OK, I should have pored over the details for a few more days).
I would be sad if the waters became muddied, although I am sure that if anyone could maintain clarity it would be Ed and The Shuang .
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Post by lynnanthony on Aug 17, 2016 17:27:56 GMT
Ed, I am not sure quite how your business works. Would there be any advantage to you in encouraging uninvested funds on your platform by paying interest (assuming that your current regulatory approval permits this.)? These funds would be at risk only to platform failure rather than any particular loans. If there is any merit in this idea what sort of rate could you offer? We could run a poll to get an idea of demand before you let Shuang loose. If Ed were able to pay interest he'd have to be working the money for something, and I'd rather invest in that something directly. As has been said, Assetz do something similar but it seems to be taking up a significant proportion of the loans we want to invest in, with the effect that people are not getting anything like the amounts they want in loans. Ed, please, keep it simple.
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littleoldlady
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Post by littleoldlady on Aug 17, 2016 19:05:04 GMT
It's a hassle continually moving cash to and from the platform and anyway where to put it to earn any non-negligible interest? Now that Santander are reducing their rate on 123 accounts to 1.5% I personally have nothing better than AC QAA and I would much rather leave it on the MT platform earning perhaps 4% if MT can profitably make use of it. I cannot invest it in any of the long term loans as my investment horizon is quite short (I may be the oldest investor here).
What do others do?
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Jeepers
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Post by Jeepers on Aug 17, 2016 19:24:09 GMT
in order for this to be viable for MoneyThing to pay you interest, they need to invest that money somewhere in order to pay you the return. It may be an option to lend your idle cash to Moneything to increase their float to bring bigger loans to then Playford and aid expansion (they've just lost a pipeline loan due to lack of float) obviously the risk would be Playford failure and you would be a creditor to MT. Apart from this, I don't see it being viable to MT to pay interest on cash held in a client deposit account earning the platform £0. littleoldlady, you say you maybe the oldest person on MT with a short investment span. My advice to you would be enjoy your money whilst you can and don't be worrying about getting the odd 1% interest on idle cash 😉
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fp
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Post by fp on Aug 17, 2016 19:28:29 GMT
Hmmm... so MT use your few grand to finance float for a pipeline loan, then you need your money back.... then what?
The only way something like this could work and be a benefit to MT would be on a fixed term type basis.
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Jeepers
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Post by Jeepers on Aug 17, 2016 19:34:41 GMT
It would work with a 30 day notice period as seen on RS.
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littleoldlady
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Post by littleoldlady on Aug 17, 2016 19:40:44 GMT
in order for this to be viable for MoneyThing to pay you interest, they need to invest that money somewhere in order to pay you the return. It may be an option to lend your idle cash to Moneything to increase their float to bring bigger loans to then Playford and aid expansion (they've just lost a pipeline loan due to lack of float) obviously the risk would be Playford failure and you would be a creditor to MT. Apart from this, I don't see it being viable to MT to pay interest on cash held in a client deposit account earning the platform £0. MT have several long term loans which have not filled. These must be using up a lot of their float. MT may use underwriters whose funds are likely to be expensive. I don't know the details of MT's business but I can imagine various ways in which they could make a profit on deposits paying, say, 4%. AC's QAA has proved enormously popular.
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registerme
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Post by registerme on Aug 18, 2016 0:19:37 GMT
/mod hat off Mainly because of my "hat" I'm wary of commenting "cross platform".... just as I keep a gentle eye on platform reps commenting "cross forum". As I have said on AC's forum, QAA was a great idea for swept cash. But the problem is that the platform has to earn > the interest being paid on QAA to be able to make it work. That, necessarily, decreases what's available on the primary market (or equivalent), increases regulatory complexity, and clouds the picture for lenders. MT, should they need to relax any pressure on their balance sheet, have easier longish term options that won't annoy lenders. Cashbacks are crude, but work. Giving underwriters, in some way, a value kick would be more situational and more nuanced. Scale(ing the business) brings a whole different, and challenging, set of questions. To conclude, where I see MT now, and where I am now as an MT lender, I would council against this as an idea. Pinging andrewholgate just because to do otherwise wouldn't be fair .
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duck
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Post by duck on Aug 18, 2016 6:32:18 GMT
Looking at this from a slightly different angle (the 3 accounts I run across multiple platforms) I keep a daily tally of what I have earning nothing. In the 10 months I have been investing with MT my 'cash balances' there have been some of the lowest. When cash has been left 'resting' is usually destined for a pending loan which thanks to the excellent communications I know about in advance. Having a rough idea of the pipeine allows a level of planning that I haven't found easy with other platforms. When the QAA came about on AC I really supported it since I was regularly seeing several £K uninvested. That hurt but if you wanted a slice of new loans you needed to keep your money on the platform so seeing some interest coming in was good since it tempered the spasmodic nature of drawdown. Then other well documented issues surfaced ...... I would hate to see MT have the same issues. Diversification is always a hot topic and here I like the MT approach of partners/introducers (probably the wrong terminology!) it gives clarity that is easy to track. Whilst most investors will probably have an exposure limit to each 'partner' as well as per loan if the number of partners was to increase ........ That said, now is the time for me to congratulate MoneyThing Looking at my spreadsheets I note that MoneyThing are now 2nd on my list of sums invested across all platforms (6 figures with MT) and looking at the trends MoneyThing will be No 1 in a couple of months As somebody who has been in P2P/P2B since the early days of Zopa that is some achievement in 10 months! So congratulations Ed and team. .... just try to keep the simplicity
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mv
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Post by mv on Aug 18, 2016 8:21:12 GMT
Recently there has been a lot of availability of 10% loans. If there are no pending loans imminent, I simply invest my repayments in whichever of the 10% loans looks the most liquid and immediately put it up for sale (still earning interest). They are usually sold within a few days at which point something else may be pending.
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Post by andrewholgate on Aug 18, 2016 8:44:00 GMT
registerme thanks for the ping Nothing to comment on for me here. Only to note I share the pain of not having more for the MLIA which I am working desperately hard to bring in some bigger loans that can offer a) higher returns and b) more for the rate pickers.
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