Investor
Member of DD Central
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Post by Investor on Aug 21, 2014 10:37:28 GMT
Always start with a nice evocative thread title I have now completed my ZP to RS migration and found an unexpected by-product. Having been with ZP for some time, a number of my loans pre-date the 'Safeguard' offer and are therefore generally at a significantly higher rate (7%-13.5%). I have now rapid returned every possible loan, taken the 1% hit on all these and this has left me with a five figure sum which has now been reinvested in my RS account (well obviously a few boaty loans got serviced too). Anticipation was that some dregs would be left in ZP as they do not allow any loans through rapid return if they have ever missed a payment. I assume Zopa believes these people to be so incapable of managing their finances that they are too high risk to pass over to an alternate lender. So now all I have is a few dozen loans left which give me an excellent blended rate of 7.4% (6.4% after ongoing admin fee) When I checked, the vast majority (screen shot attached) of my retained loans had made 1 failed payment, normally within the first couple of months a few years ago. All these payments had been caught up within a day or two of the failed payment. So now my new position is that my Zopa account is giving me a higher rate of return than my RS account. Interesting that the only way that a lender can get Zopa rates to exceed RS rates is by leaving.  |
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Post by GSV3MIaC on Aug 21, 2014 12:15:36 GMT
I was amused, or not, to discover zopa would not let me RR a loan (a safeguard loan at that) where the borrower had been one day late with payment #1. This just reinforced my desire to get out of there to someplace with half a clue. Even their name is now wrong, the only zone I can agree on with them is the 0_zone .. Zero funds. Well, £9.36 unless I can RR that one loan.
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Post by seaninog on Aug 21, 2014 14:06:16 GMT
The whole trend that RateSetter are now the dominant player in this space and Zopa are somewhat 'asleep at the wheel' in terms of responding to the changing market around them is just accelerating. In terms of innovation, customer service and general self-awareness, RateSetter are, and have for some time been, miles ahead. Zopa still think it's 2008 and they "are the market". Such a shame as the space could use two (or more?) strong players and I don't think Zopa will be in their relative position 5 years from now without a serious change (probably in senior management).
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Post by henders on Aug 21, 2014 14:54:48 GMT
I joined ZOPA (2012) followed by RS then AC and finally Wellesley.
For the first time I am seriously considering winding ZOPA down and re-investing in RS.
Not particularly unhappy with the rates at Z (averaging 5.5 after fees and currently 5.2) but a bit worried about the platform, their future and their unresponsiveness to lenders.
They rarely respond to searching questions on their forum (at least not in a timely way) compared to RS (averaging 6%) , AC (averaging over 10%) and W (one year at 4.75%).
Rate promise is fine but how profitable is it for Z?
I think I am right in saying that Z do not yet make a profit; that is a worry.
My preference over the next year or so is (assuming they keep delivering) to stick with RS and AC and probably wind down Z and she how Wellesley develops.
Not a final decision yet but beginning to lean that way.
Would welcome others' views.
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mike
Member of DD Central
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Post by mike on Aug 21, 2014 16:56:10 GMT
I first started investing in P2P about a year ago. I decided to start with the consumer lending side ie RS or Zopa. Having evaluated both before investing RS was a no brainer for me. Better rates, more control and on the up and up. The only counter argument would have been diversification and maybe splitting between the two. In the last year the gap has grown in RS's favour. Six months ago I turned my attention to business lending and have have invested in AC, SS and Wellsley. AC is by far my biggest holding. The two things they have in common are asset backed security and generally good customer interfacing. Over the next few months i will be increasing my holdings across these platforms with the exception of Wellsley who have dropped their rates since my previous investment. I would probably like to add another platform maybe TC but I have mixed opinions here based on what I've read.
Mike
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Post by davee39 on Aug 21, 2014 22:27:25 GMT
Zopa is the place to be for lovers of trivia and avid watchers of paint drying. The latest 'I lent £10 last Friday' thread is linked below for inspection. Note that this refers to the new system where there is a queue to go in the queue. talk.zopa.com/topic/9201-in-the-queue-to-go-on-offer/ |
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Post by westonkevRS on Aug 22, 2014 5:32:08 GMT
A queue to get in a queue, that sounds like an Englishman's dream. That's why I still lend with Zopa.
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Post by GSV3MIaC on Aug 22, 2014 8:02:52 GMT
I'm sure you do it to keep up with the opposition and chuckle over their latest pratfall, no?. 8>.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 22, 2014 9:50:31 GMT
Zopa are ahead of the curve here. Q2Q lending P2P -the next generation  |
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Post by westonkevRS on Aug 22, 2014 18:44:14 GMT
I'm sure you do it to keep up with the opposition and chuckle over their latest pratfall, no?. 8>. Actually, no. I was an early lender with Zopa, and a huge advocate. I told many people to lend with them. Although it isn't as much fun now and the returns have reduced, but perhaps that's inevitable if they aren't to stay some niche product for financial geeks (like me). My perfect outlook would be an environment where P2P grows together successfully with strong players. Providing equal competition to the traditional banks, and with minimal risk premium. Force them to give fair returns and decent customer service, rather than greedy CEOs and bonus driven risk taking Of course there is healthy competition within P2P, but that's a diversion. With small % of consumer lending in the UK by P2P we need to grow together. Apologies for the cliche, but we are stronger and bigger together!
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c88dnf
Member of DD Central
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Post by c88dnf on Aug 23, 2014 17:54:16 GMT
I joined ZOPA (2012) followed by RS then AC and finally Wellesley. For the first time I am seriously considering winding ZOPA down and re-investing in RS. I think I am right in saying that Z do not yet make a profit; that is a worry. Would welcome others' views. Zopa made small profits in 2011 & 2012, but not in 2013, according to press reports. I have simply lost patience with Zopa and "rapid-returned" as many of my Zopa loans (all pre-Safeguard) as I was allowed to earlier this year, yielding a few thou to invest in Ratesetter. The principal reasons were Zopa's awful "hidden queue" model and growing concern in my head about their long-term viability. £563 remains in 21 loans, at least 7 of which are clearly going to go bad. I consider that cash written off, with any further income just a bonus. I really should diversify into Wellesley and the business platforms, but I really don't want to spend lots of time managing P2P investments.
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