adrianc
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Post by adrianc on Jul 17, 2015 8:26:42 GMT
Ah, gotcha. Thanks for the clarification.
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Post by GSV3MIaC on Jul 17, 2015 8:28:08 GMT
Ditto, ditto and likewise.
Did either of the two bold adventurers (or others) get any convincing insight into when/how the it infrastructure is going to get fixed? Although it has been a bit better of late. 120 new staff is likely to cause as many problems as it fixes.
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pom
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Post by pom on Jul 17, 2015 8:30:29 GMT
I can see there being a problem with the US, but it should all be straightforward within the EU? Guess it may depend if we stay or go!
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adrianc
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Post by adrianc on Jul 17, 2015 8:33:47 GMT
120 new staff is likely to cause as many problems as it fixes. Do we have any indication of the current scale of their IT operation? If there's currently 40 people, 120 noobs is likely to be unmanageable. If there's currently 400 people, 120 will be absorbed easily. Oh, and Pom - don't even go there...
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arbster
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Post by arbster on Jul 17, 2015 9:11:48 GMT
120 new staff is likely to cause as many problems as it fixes. Do we have any indication of the current scale of their IT operation? If there's currently 40 people, 120 noobs is likely to be unmanageable. If there's currently 400 people, 120 will be absorbed easily. Oh, and Pom - don't even go there... IIRC they currently have c. 400 staff, of whom c. 100 are IT, so they're roughly doubling. The European experiment is very much in feasibility stages at the moment, looking at regulatory and social aspects.
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Post by pepperpot on Jul 17, 2015 9:26:40 GMT
Yep, thanks to both, great reviews. On the 'declaring income net/gross of defaults' point, Christine Farnish (chair of P2PFA) said at the TC conference (timestamp 1:03:30) that legislation will indeed come in for Apr '16 but will be backdated to '15, so I'm taking it as currently live. (Disclaimer - Although I trust what she says, I guess it's 2nd hand info, not direct from HMRC) |
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am
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Post by am on Jul 17, 2015 10:35:30 GMT
- They have lots of cash available (though I didn't get their burn rate their operating income is ~£300 million a year (this needs a sanity check, it might have been $).
£300 million per year sounds about right for the annual rate of loan origination. (They have about £500 million of loans under management, and there is a definite bias towards the present.) I don't consider this to be their operating income. Their operating income is 1% of loans under management (£5 million), several percent of new loan volume as arrangement fees (finger in the air - call it £9 million (3% of £300 million)), plus about 7% of loans on PCPF's books (£60,000). So that's an operating income of £15 million - I can't see anyway it could be north of £20 million. It will cost them at least £20 million employing their 400 staff. If I'm not missing something, staffing costs is going to be their biggest expenditure. I estimate cashback is costing them £1 million or so, and the advertising budget to be of the same order of magnitude.
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registerme
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Post by registerme on Jul 17, 2015 10:56:36 GMT
Agreed am, I was just writing this when I saw your post  . A couple of additional comments:- * I don't think my £300m operating income can be correct, might it have been $30m? * I agree with arbsters comments about IT staffing, that's my recollection as well. * They're absolutely not utter incompetents. But I do think they're aware that they are on a pretty wild ride, and that the platform needs to mature quickly. - They were really rather contrite about some of the problems that people have experienced (eg the current fiasco with the mis / re-banding of the E to A loan). - They are recruiting a new CRO from a major UK financial services firm. I took this not as a criticism of their current CRO, but an aknowledgment that they need to mature fast. * They are moving premises in a few weeks time. Whilst I hope this doesn't negatively impact their operations my own experiences of managing building moves suggests that there will, inevitably, be some disruption. |
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arbster
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Post by arbster on Jul 17, 2015 11:25:44 GMT
Yep, thanks to both, great reviews. On the 'declaring income net/gross of defaults' point, Christine Farnish (chair of P2PFA) said at the TC conference (timestamp 1:03:30) that legislation will indeed come in for Apr '16 but will be backdated to '15, so I'm taking it as currently live. (Disclaimer - Although I trust what she says, I guess it's 2nd hand info, not direct from HMRC) You're absolutely right, and reviewing my notes again, this is what I wrote down: Which appears to be consistent with the comments from Christine Farnish.
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