travolta
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Post by travolta on Mar 1, 2023 18:44:48 GMT
Not sure if I am happy with their new venture ....up until now they have been VERY GOOD (to me). Whats the general opinion?.Do you agree thats its a can of worms ...as proved by so many that have tried and failed. You can get out by April 1st .
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Post by Badly Drawn Stickman on Mar 1, 2023 19:02:19 GMT
Not sure if I am happy with their new venture ....up until now they have been VERY GOOD (to me). Whats the general opinion?.Do you agree thats its a can of worms ...as proved by so many that have tried and failed. You can get out by April 1st . It is a bit light on detail. My understanding is it has always been possible to withdraw 'your' funds, but accrued interest was not paid. If that is the case then withdrawing it all at the next interest anniversary is the exit option. Not really that much of an issue for me I have a rolling 6 month thing going on so will just stop reinvesting. I am inclined to quit while I am ahead personally, change is always bad it seems.
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Post by df on Mar 1, 2023 19:50:37 GMT
Not sure if I am happy with their new venture ....up until now they have been VERY GOOD (to me). Whats the general opinion?.Do you agree thats its a can of worms ...as proved by so many that have tried and failed. You can get out by April 1st . In my 2 yers with EM I've been very comfortable with their product and my returns. So far I've received more interest than projected and my overall impression of the team and how they operate is positive. The change could be driven by growing borrowing demand and lack of retail investors' funds, so they are probably in need to fill the gap. Skin in the game is generally a good thing (I think), but there might be a can of worms there that I don't see. I haven't formed any strong opinion on this change yet and interested what others think.
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ilmoro
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'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 Mar 1, 2023 19:51:10 GMT
The two issues that need clarification are:
Elfin lending doesnt pollute the P2P loans ie its different loans (see UB case) - regulatory requirement The risk of bad debt to Elfin resulting in a platform collapse and the mitigation against that impacting lenders
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Greenwood2
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Post by Greenwood2 on Mar 1, 2023 21:02:26 GMT
Looks like going into corporate lending, retail is likely to be gone in a year or two. Sad, I really liked elfin.
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Post by DanielG on Mar 2, 2023 11:56:30 GMT
Morning everyone,
Thought I’d pop up to clarify a few things. I’m pretty excited about this news; as you can imagine, the demand for fair, low-cost credit is relatively high. This additional source will enable us to service these customers and grow as a business. Having said that, I can see why some may have a slight sense of trepidation. In my time here, I can see that other lenders in similar circumstances may have left a sour taste in customers’ mouths.
There will be no pollution between the funding lines, new customers will automatically be allocated to the P2P side, or our lending side. We have committed to balancing the risks between P2P lenders and our lending activities, with any variance always favouring P2P lenders. This applies to not only default risk but also queue times.
As always, you can withdraw your funds with no fees, provided we can reallocate your loans. Obviously, I can’t make any guarantees, but at the time of writing, this should go through quickly.
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Post by Badly Drawn Stickman on Mar 2, 2023 12:34:25 GMT
Morning everyone, Thought I’d pop up to clarify a few things. I’m pretty excited about this news; as you can imagine, the demand for fair, low-cost credit is relatively high. This additional source will enable us to service these customers and grow as a business. Having said that, I can see why some may have a slight sense of trepidation. In my time here, I can see that other lenders in similar circumstances may have left a sour taste in customers’ mouths. There will be no pollution between the funding lines, new customers will automatically be allocated to the P2P side, or our lending side. We have committed to balancing the risks between P2P lenders and our lending activities, with any variance always favouring P2P lenders. This applies to not only default risk but also queue times. As always, you can withdraw your funds with no fees, provided we can reallocate your loans. Obviously, I can’t make any guarantees, but at the time of writing, this should go through quickly. Whilst you are in clarifying mode could you confirm where the finance for your lending will come from? I am assuming it was not from an office 'whip round'.
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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 Mar 2, 2023 12:38:14 GMT
Morning everyone, Thought I’d pop up to clarify a few things. I’m pretty excited about this news; as you can imagine, the demand for fair, low-cost credit is relatively high. This additional source will enable us to service these customers and grow as a business. Having said that, I can see why some may have a slight sense of trepidation. In my time here, I can see that other lenders in similar circumstances may have left a sour taste in customers’ mouths. There will be no pollution between the funding lines, new customers will automatically be allocated to the P2P side, or our lending side. We have committed to balancing the risks between P2P lenders and our lending activities, with any variance always favouring P2P lenders. This applies to not only default risk but also queue times. As always, you can withdraw your funds with no fees, provided we can reallocate your loans. Obviously, I can’t make any guarantees, but at the time of writing, this should go through quickly. Hi Thanks for the comments. What is the source of the funding for the Elfin lending? Balance sheet lending by P2P companies increases the risk to lenders and isnt something the FCA likes normally. Edit crossed with VI, great minds etc
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Post by Ace on Mar 2, 2023 13:49:20 GMT
Tagging DanielG. And roughly what percentage split do you anticipate between P2P and institutions in term of lending volume?
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Post by Mansour B on Mar 2, 2023 14:19:39 GMT
Hi everyone,
This is Mansour, one of Elfin Market's co-founders. I thought I'd add a bit to Dan's response above, to answer more of your questions.
First, we are still committed to the peer-to-peer lending model. We have no plans to close the peer-to-peer side of our business, nor to stop accepting new lenders. However, we've seen over the years that the amount of funding we can source through peer-to-peer is somewhat limited, and doesn't allow us to scale our borrower population as well or as quickly as we'd like to.
The solution we've been looking towards is to source funding from institutional investors. However, the FCA's peer-to-peer lending permission highly limits our ability to take in institutional funding, as the only institutions that are allowed to invest in a peer-to-peer platform in the UK are those who have their own consumer credit permission.
This is why we have designed an alternative structure, where Elfin Market acts as a lender (and we've obtained the required permission from the FCA to do so). But we will not be keeping any of the risk on our own balance sheet. The general idea is that we'll take funding from institutional investors, use that funding to lend to borrowers, and then pass on to the institutional investor all the risk and return from the loans entered into with their funds (minus only our servicing fee, just like on the peer-to-peer side). The goal is to perfectly replicate the economics of our peer-to-peer lending business, but in a structure that allows us to accept institutional investors.
As we noted in yesterday's email, we do intend to put on a blog post over the next few weeks, to explain in more detail how all this will work.
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travolta
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Post by travolta on Mar 3, 2023 17:32:21 GMT
Jumped(not without regret) before there is a rush. Sorry ,Elves , been bitten by so many misadventures, mentioned here ,that I'm overcautious now . Good luck with the new venture .Hope it works for you .
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Post by Badly Drawn Stickman on Mar 3, 2023 19:50:42 GMT
Jumped(not without regret) before there is a rush. Sorry ,Elves , been bitten by so many misadventures, mentioned here ,that I'm overcautious now . Good luck with the new venture .Hope it works for you . I must admit I was slightly impressed that they have managed to find institutional investors prepared to supply funds in the same way we have been doing. I would have assumed they would have wanted something not totally opaque and trust us 'because we are good people' references. I was never totally sure it was a good investment so parting is not really that hard for me, I doubt my level of investment will make a big impact on them either way. Its a business model that needs to keep scaling up to survive and clearly there is not the appetite in P2P that there was for ratesetter and the like. I suspect we have helped to prove the model and it is now time to go large.
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Post by Mr Baggy on Mar 3, 2023 21:49:11 GMT
I'm sticking in there.In for the long run..I have faith wish me luck..
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Greenwood2
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Post by Greenwood2 on Mar 4, 2023 10:31:48 GMT
I'm sticking in there.In for the long run..I have faith wish me luck.. I'm staying too, once they get enough institutional funds I expect retail to get phased out, but that could be a good way off. Happy with the rates so wait and see what happens.
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firedog
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Post by firedog on Mar 4, 2023 11:45:17 GMT
I'm sticking in there.In for the long run..I have faith wish me luck.. I'm staying too, once they get enough institutional funds I expect retail to get phased out, but that could be a good way off. Happy with the rates so wait and see what happens. I probably will too. I've no problems with organisations taking institutional funding (who could blame them at a time when retail investors are so timid?) And if retail gets phased out in the years hence, then that's fine as long as it's done equably. I suppose my irritation is down to my impression that Elfin Market hasn't really tried with retail. Have they marketed it (their social media favours pictures of their credit card in exotic places)? Have they done anything to pierce the veil that surrounds what we're lending to? You're hard placed, as a potential investor, to understand what interest rate to expect, or why each investment has its own return that stops accruing interest shortly before it matures, or why you can choose between six-month and three year loan terms yet apparently withdraw your investment at any time without penalty? Elfin Market's returns, when I work them out, have been above expectations. One of my best-performing P2P investments. But Elfin is still my smallest investment by value, simply because I don't truly understand how it works and there's been little attention paid to communication with investors. I think it could have done better in this regard.
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