chriscross
Member of DD Central
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Post by chriscross on May 16, 2018 12:24:36 GMT
This is very welcoming news, especially after the downer many of us are feeling from Collateral.
My thoughts are that they may well be looking to simplify their offerings and hoping they can build up very fluid 30-day and Quick-Access accounts to eventually run down the Property and Business Accounts and leave just the 30-day, Quick-Access and probably Manual Investment. But they would need to be very confident on the fluidity to achieve this and I can't imagine they would risk losing the Manual Investment.
What they may do is consider longer access accounts, such as a 90-day or 365-day account, which we may see as being more viable than fixed term savings accounts or Bonds, who knows..
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misscas
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Post by misscas on May 16, 2018 12:27:51 GMT
Therein no doubt lies the answer as to why Assetz decided to stop displaying the total. Less experienced investors not fully understanding the function of these funds may get concerned when the total value drops significantly. They wouldn't drop though. When the QAA is used to underwrite a loan the funds still remain in the QAA......it just means the QAA holds the loan units of the loan in question. The QAA balance doesn't shift. Yes, my apologies. Forgot to engage brain in trying to find a simple explanation! Hopefully it’s a temporary omission then and will soon be restored.
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Post by Butch Cassidy on May 16, 2018 12:29:14 GMT
I actually see this a bad news, specifically for MLA lenders, the platform is already awash with “savers money” chasing the headline rate i.e. no interest in investing or what their money is being invested in. This allows AC to fund any loans that see fit, via the collective accounts effectively being used as free underwriting funds, without the necessary DD or value requirements that traditional underwriters would impose on the process.
AC as a platform need growth to generate revenue so it is very tempting to price such loans for liquidity not risk, a charge they strenuously deny, but given the trend in rates offered to lenders over the last few years rather difficult to justify IMO. The result is loans get funded at way below the rates that their risk would justify elsewhere, meaning that the SM has hundreds of “poor value” loans (in term of risk & reward balance) looking for a home, so any quick sales require a discount & competition for the remaining fair value loans is greater so allocations are reduced both resulting in less return for lenders.
As a MLA lender I see little future in AC going forward but as an equity shareholder I see this strategy succeeding, at least in the short/medium term until the savers want their money back, so will invest in the equity rather than as a lender.
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shuff27
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Post by shuff27 on May 16, 2018 12:35:43 GMT
In other news...just had email from Unbolted saying they are reducing their lender interest rates - you win some, you lose some!
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Post by chris on May 16, 2018 12:51:34 GMT
Very welcome indeed! 'We're excited to announce our first ever rate rise across our Access Accounts! This rate increase which takes effect from 1st May 2018 until further notice, will take target gross interest rates for the Quick Access Account and 30-Day Access Account from 3.75% to 4.1% and 4.25% to 5.1% respectively.* ' AND ... at the same time they remove from view the amount in each account. Why the reduction in transparency chris - what is the genius rationale behind removing a critical piece of data with no notice and apparent reason. couples with a HUGE rate change? Should we be worried about your liquidity in the access accounts?! It appears to have been removed in error so will be reinstated. There's a wider discussion being had about bringing more transparency to the account so it isn't our intention to head in the wrong direction on that front. If you've seen our monthly lending volumes recently they've seen a step change upwards so this promotion is part of a wider strategy to bring in more lender funds to make sure we can continue to balance the lender / borrower seesaw and grow the business.
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Post by chris on May 16, 2018 12:52:02 GMT
chris are there any new customer joining incentives atm or expected in the near future? Yes, there's a referral scheme on one of the director's desks at the moment awaiting approval.
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dandy
Posts: 427
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Post by dandy on May 16, 2018 13:04:41 GMT
AND ... at the same time they remove from view the amount in each account. Why the reduction in transparency chris - what is the genius rationale behind removing a critical piece of data with no notice and apparent reason. couples with a HUGE rate change? Should we be worried about your liquidity in the access accounts?! It appears to have been removed in error so will be reinstated. There's a wider discussion being had about bringing more transparency to the account so it isn't our intention to head in the wrong direction on that front. If you've seen our monthly lending volumes recently they've seen a step change upwards so this promotion is part of a wider strategy to bring in more lender funds to make sure we can continue to balance the lender / borrower seesaw and grow the business. thanks chris. one suggestion for transparency would be to provide a figure for Outstanding Commitments (i.e. future funding of existing loans that has not yet been drawn). Is it fair to assume this is always kept within the cash float?
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rick24
Member of DD Central
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Post by rick24 on May 16, 2018 13:06:24 GMT
There must be £50 million for sale on the resale market: is there any pattern to that? Are people 'ensuring their place in the queue' and then buying back in, as they do on MoneyThing, or is this money tending to head off-platform?
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gnasher
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Post by gnasher on May 16, 2018 13:27:07 GMT
hmmmmmm......
to my mind higher rate = higher risk. Higher risk = higher defaults/losses.
Can we really expect higher returns in the long term?
hmmmmmm......
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Post by chris on May 16, 2018 13:33:33 GMT
hmmmmmm...... to my mind higher rate = higher risk. Higher risk = higher defaults/losses. Can we really expect higher returns in the long term? hmmmmmm...... It's a temporary marketing promotion...
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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 May 16, 2018 13:35:22 GMT
chris are there any new customer joining incentives atm or expected in the near future? Yes, there's a referral scheme on one of the director's desks at the moment awaiting approval. Been there a while p2pindependentforum.com/post/62696/thread 
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Post by chris on May 16, 2018 13:39:07 GMT
or is this money tending to head off-platform? The report I just quickly checked only goes back 20 weeks, but not one of those 20 weeks has seen a net withdrawal from the platform. Deposits have exceeded withdrawals in each of those weeks, with only one of those weeks being less than a 7 figure net inflow and even that was over £900k. Our lender base is growing at a very healthy rate but so is our borrower origination so we need to make sure we keep the two balanced and this promotion is part of that strategy.
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Post by chris on May 16, 2018 13:40:04 GMT
Yes it has. It is reaching the top of their pile though due to our current period of growth and wish to consolidate that.
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rick24
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Post by rick24 on May 16, 2018 13:46:31 GMT
or is this money tending to head off-platform? The report I just quickly checked only goes back 20 weeks, but not one of those 20 weeks has seen a net withdrawal from the platform. Deposits have exceeded withdrawals in each of those weeks, with only one of those weeks being less than a 7 figure net inflow and even that was over £900k. Our lender base is growing at a very healthy rate but so is our borrower origination so we need to make sure we keep the two balanced and this promotion is part of that strategy. Thanks Chris. I was beginning to feel a bit jumpy. 
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jlend
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Post by jlend on May 16, 2018 13:51:39 GMT
The spring bonus was funded by AC via a reduction in their fee rather than impacting the contributions to the provision fund i see. chris is this rate increase being funded in the same way? |
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