Post by WestonKevTMP on Feb 5, 2018 17:39:38 GMT
We've been asked via email and here on the forum how the queue works. This is important because the site doesn't currently tell you a queue position or expected time to lend, something I plan to change with IT priorities allow.
It's also been a concern as lending was slow as we calibrated lending credit policy and switched to the amortising loan product to de-risk. The lending volumes are now increasing as we switch on borrower channel partners and queue times reduce with liquidity outflow. So today queue waiting time or less of an issue, however it's still important to know how the queues work.
The market lending screens look like;
This will be familiar to current lenders, where you opt to lend into markets depending on value and term buckets. This is my own lender screen, and you'll see I typically lend in the £250 and £500 market. This is my attempt at fractionalisation with small loans, obviously depending on total lend. However this is probably not the lowest risk approach on an individual loan basis, as the £750 and £1,000 lending criteria is far more strict and is restricted with tighter credit scores and policy. But lenders are free to make their own approach.
The logic is based on FIFO (first in, first out) and works regardless of which markets a lender is in. Imagine all lenders are considered in a single queue, and when lenders make a loan they go to back of the queue. Of course lending is done in individual markets, so lenders in multiple markets increase their chances of lending.
If you are lending across segments/buckets or have a multiple of your offer amount in your wallet; when you are matched to a loan then your remaining funds go to the back of the queue. So for example if you have £1,000 in your wallet and lend across the 8-week and 12-week £250 buckets, if you are matched to a loan in either market then remaining funds are sent to the back of the queue. Again if you lend in multiple markets it is more likely that you'll get to the front of the queue again.
No priority is given for lenders who have been with the platform longer, or reinvested funds.
We don't allow lenders to make offers lower than the minimum to lend faster, as the returns have been calculated based on expected defaults and income. Therefore we wouldn't want lenders to enter into rates that we know we would expect them to make a loss, if bad debt estimates are in line with forecasts. Additionally The Money Platform receives an equal share of income, from which significant costs have to be paid. Without this income the platform would not be sustainable.
Kevin.
It's also been a concern as lending was slow as we calibrated lending credit policy and switched to the amortising loan product to de-risk. The lending volumes are now increasing as we switch on borrower channel partners and queue times reduce with liquidity outflow. So today queue waiting time or less of an issue, however it's still important to know how the queues work.
The market lending screens look like;
This will be familiar to current lenders, where you opt to lend into markets depending on value and term buckets. This is my own lender screen, and you'll see I typically lend in the £250 and £500 market. This is my attempt at fractionalisation with small loans, obviously depending on total lend. However this is probably not the lowest risk approach on an individual loan basis, as the £750 and £1,000 lending criteria is far more strict and is restricted with tighter credit scores and policy. But lenders are free to make their own approach.
The logic is based on FIFO (first in, first out) and works regardless of which markets a lender is in. Imagine all lenders are considered in a single queue, and when lenders make a loan they go to back of the queue. Of course lending is done in individual markets, so lenders in multiple markets increase their chances of lending.
If you are lending across segments/buckets or have a multiple of your offer amount in your wallet; when you are matched to a loan then your remaining funds go to the back of the queue. So for example if you have £1,000 in your wallet and lend across the 8-week and 12-week £250 buckets, if you are matched to a loan in either market then remaining funds are sent to the back of the queue. Again if you lend in multiple markets it is more likely that you'll get to the front of the queue again.
No priority is given for lenders who have been with the platform longer, or reinvested funds.
We don't allow lenders to make offers lower than the minimum to lend faster, as the returns have been calculated based on expected defaults and income. Therefore we wouldn't want lenders to enter into rates that we know we would expect them to make a loss, if bad debt estimates are in line with forecasts. Additionally The Money Platform receives an equal share of income, from which significant costs have to be paid. Without this income the platform would not be sustainable.
Kevin.