elliotn
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Post by elliotn on Feb 11, 2017 4:21:04 GMT
The effect on liquidity will be minimal. MT don't do INPL and it's impossible to get invested on the SM. But MT do deposit and withdraw your money rapidly, usually within minutes. I can put money on MT in the morning, and if I don't manage to grab anything, have it back in my account at the end of the day if I am not leaving it on for the pipeline the next day. SS may need to dedicate a resource to a manual process meeting lender demands for same day deposits and withdrawals to try their luck on the SM. Other tight ships do manage it although it wouldn't surprise me if this was used to add wind to the sails of our drifting rates of return. On the upside, as some staff send out generic emails for Q&A (ie this loan is live and the latest updates are available on the website), perhaps one or two headcount would have the capacity to fill up their time.  Anyway, Dr cards would be the answer, depending on FCA take whether these are cleared or promised funds (as previously discussed by Andrew).
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elliotn
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Post by elliotn on Feb 11, 2017 4:58:13 GMT
Isn't there a very simple solution to this 'problem'? Make a new loan live a few days before it draws down. That would provide ample time for investors to have INPL and still pay for their investment before drawdown. This is the preferred pre-fund suggested by others for MT, and maybe it is how SS are going to keep INPL for the PM - launching the loan 48hrs before actual live That makes practical sense for buying new loans with cleared funds. This would need to be balanced with the commercial speed of funding that SS have tried to differentiate themselves with. I believe this is why they are reluctant to commit to a fixed go-live time and their business alacrity got a special mention in the 2016 storytelling (if no longer quite heralded as the biggest p2p loan in the universe, it was certainly close to p2p light-speed for its size). SS would also need to avoid go live creep trying to ensure the client still got their funds at the expected time in case this compromised completion of their comprehensive due diligence processes and caused a delay or cancellation further on. Cash funds could simply been returned although forumites have already complained about whether to keep a small cash float for any SM opportunities they may like.
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SteveT
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Post by SteveT on Feb 11, 2017 6:51:03 GMT
Either way, I think some credit is due to Paul64 for delivering on his commitment to send out weekly update emails on Fridays. 3 out of 3 so far; keep up the good work! |
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elliotn
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Post by elliotn on Feb 11, 2017 7:15:19 GMT
I want to join the congratulations. I am to be convinced that material updates for individual loans will be given once known rather than waiting up to half a month given the maturity of the bridging and development loan book although I do appreciate an insight into the pipeline. A one handed clap for now . Edit - the new defaults' policy requires TP updates to be provided within 5 WDs obviating the above concern. I have plausibly paused applause until 01/03 only. |
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Post by supernumerary on Feb 11, 2017 7:47:55 GMT
Am I correct in thinking I have until 1st March to keep milking INPL? After that there's no way I'm leaving idle cash in SS, pains me to leave idle cash in any platform. 100% invested 100% of the time. Often with SS, it's been 125-150% invested 100% of the time  INPL has been a part of the benefits of investing in Saving Stream, that has contributed to the liquidity on the platform, so that investing and de-investing to maintain a healthy portfolio balance is straightforward and not time consuming. Until I read your comment, I hadn't fully realised or appreciated the reason why Saving Stream have only now brought INPL to an end on the secondary market. Thank you for succinctly explaining the reason why...
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fp
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Post by fp on Feb 11, 2017 10:15:48 GMT
All due respect to SS, I made a withdrawal at around 9am this morning and it was in my bank by 9.20
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oldgrumpy
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Post by oldgrumpy on Feb 11, 2017 10:28:44 GMT
Either way, I think some credit is due to Paul64 for delivering on his commitment to send out weekly update emails on Fridays. 3 out of 3 so far; keep up the good work! It is more of a "spin"date than an update.
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n
Member of DD Central
Yet another Nick
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Post by n on Feb 11, 2017 10:29:33 GMT
All due respect to SS, I made a withdrawal at around 9am this morning and it was in my bank by 9.20 You were lucky!
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Liz
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Post by Liz on Feb 11, 2017 10:45:33 GMT
Not received the email - it seems they only send me 'please resolve your negative balance emails'. Am I correct in thinking I have until 1st March to keep milking INPL? After that there's no way I'm leaving idle cash in SS, pains me to leave idle cash in any platform. 100% invested 100% of the time. Often with SS, it's been 125-150% invested 100% of the time Regards How dare they remove this feature! I resent not getting my free interest and being 105% invested.  I'm just surprised INPL on the SM lasted this long. It adds to platform risk and costs them money. It certainly made me "extra" interest, thanks SS  If we see an ISA in the summer, then this "loss" will become a distant memory. I really hope these new changes/policies lead to full authorisation, it's took long enough.
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bloodycat
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Post by bloodycat on Feb 11, 2017 11:31:30 GMT
Despite a few people making a big fuss about the removal of INPL for the secondary market I suspect for most people it will make a negligible difference.
From SS point of view, if it stops individuals transferring money in and out every few days continually chasing the best deals it will save them a lot of admin and cost involved with processing these transactions.
For the majority of us who, don't have time to monitor more than a couple of platforms, occasionally having a few percent of our investment earning nothing for a few days/weeks while waiting for something worth investing in is no great deal, getting an annual return of 11.9% rather than the headline 12% rate on my money is still considerably better than the paltry rates available in a savings account.
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ablender
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Post by ablender on Feb 11, 2017 11:34:40 GMT
You are thinking only of yourself with big money. Why should I have £1k sitting on a platform, SS in this case, when I can have it in my bank, ready to go to which P2P platform has a good offer and arriving at that platform very fast? It is not the money that you will earn in interest from the bank which is the driving force. That is just not true. The example I have given (as i think you know) is just using round, base 10 numbers to make an example. Divide by 10 (or 100 if you like) and it gives the same result (£1 missed interest on £1200 earned or 10p lost on £120). Whichever way you slice it the missing interest is 0.083% pa. If lost interest isn't the driving force then what exactly is? The principle? I think you've been spoilt - you can't have your cake and eat it. Have you put a similar complaint on the MT board? Why should I put a similar complaint on the MT board? MT deposits are fast. If SS deposits improve then I see no problems and I have said that in other posts. I hope that you read in a non selective way. Re MT you are free to go to their boards and check for yourself. Re cake and eat it - What is the use of having a cake if you cannot eat it?
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bg
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Post by bg on Feb 11, 2017 11:44:21 GMT
That is just not true. The example I have given (as i think you know) is just using round, base 10 numbers to make an example. Divide by 10 (or 100 if you like) and it gives the same result (£1 missed interest on £1200 earned or 10p lost on £120). Whichever way you slice it the missing interest is 0.083% pa. If lost interest isn't the driving force then what exactly is? The principle? I think you've been spoilt - you can't have your cake and eat it. Have you put a similar complaint on the MT board? Why should I put a similar complaint on the MT board? MT deposits are fast. If SS deposits improve then I see no problems and I have said that in other posts. I hope that you read in a non selective way. Re MT you are free to go to their boards and check for yourself. Re cake and eat it - What is the use of having a cake if you cannot eat it? I don't really see your point. My understanding is that most parts on the SM on SS only hang around for a few seconds. Can you do a deposit on MT within a few seconds so you could snap these parts up? (I use MT so I know the answer to that is no). On top of that, it's a level playing field. If it takes everyone the same time to transfer money in why would faster deposits make it easier to snap up parts. There will still be the same completion with the same number of people missing out. People like me who hold a small cash balance will always beat you to it (if I could ever be bothered to sit on the SM all day trawling). Demand outstrips supply and and slight changes in the SM rules is not going to change that.
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Feb 11, 2017 11:47:21 GMT
Despite a few people making a big fuss about the removal of INPL for the secondary market I suspect for most people it will make a negligible difference. From SS point of view, if it stops individuals transferring money in and out every few days continually chasing the best deals it will save them a lot of admin and cost involved with processing these transactions. For the majority of us who, don't have time to monitor more than a couple of platforms, occasionally having a few percent of our investment earning nothing for a few days/weeks while waiting for something worth investing in is no great deal, getting an annual return of 11.9% rather than the headline 12% rate on my money is still considerably better than the paltry rates available in a savings account. If SS can automate or increase their deposit runs then the problem would be nominal. If I have money held in MT and an opportunity arises at COL then you can withdraw at one and deposits in the other in a mater of hours (sometimes minutes!). The biggest issue is diversifying via the SM which will become impossible with the new rules unless I have money sitting in the SS account. Not complaining though, I can live with the changes
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fp
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Post by fp on Feb 11, 2017 12:24:40 GMT
All due respect to SS, I made a withdrawal at around 9am this morning and it was in my bank by 9.20 You were lucky! Indeed, the second one at around 9.45 which was made after some of my loan parts vanished into the SM black hole and couldn't be sold until someone pushed me down the queue isn't likely to be so prompt though!
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Post by d_saver on Feb 11, 2017 13:00:14 GMT
I can live with the changes too, as I do on other platforms, but I'm glad I managed to get mostly invested before this change came about. It would have been a much, much longer journey otherwise. It does seem a beneficial feature to some and a unique plus of the SS platform is being lost, which is a shame.
SS was/probably still is my favourite platform because it allowed me to get invested quickly and diversify, all because of the way the SM works.
I can understand the reasons for the changes, but with a bit of effort, I think this valuable feature could be maintained and still be within the FCA rules, if SS are interested in investing a little time to do it
Debit card is fixed small cost, no matter the transaction. ~20 pence maybe. I would be happier to pay £1 for processing charges to buy a SM investment there and then, than leave money in account. Lendy would only have to suspend the sale to other parties (the loan part remaining in the hands of the seller) for the length of time it takes to complete the transaction. So, FFF still works. There are no charge backs to debit cards and all the people purchasing on the SM have already had some basic DD done on them so I think card fraud is unlikely. Some other p2p platforms accept debit cards without issue. You could limit the transaction size given this probably mostly appeals to smaller investors.
Add loan parts to shopper basket, purchaser making a commitment to pay for them
seller goes through checkout immediately thereafter, paying with debit card
transaction is good, all is well.
transaction fails, part is immediately put back on SM
Lendy never takes ownership of the part
, fca happy
If buyer has funds on account, simply skip the checkout.
Lendy may need to operate some float to allow a seller to withdraw money from loan parts immediately due to cash settlement times, but it could be small given the transaction size restriction. I guess this might be risk they would not want.
This would keep the current system which some of us very much like and continue to allow small investors to easily diversify into loans as they are available. It is that last part which I think is important to smaller investors and what made the SS platform great (for me).
This is just a wish. I realise it likely will not happen. It probably is only beneficial to smaller investors like myself and as I said, it seems a shame to loose the very feature that made SS your fav platform. I guess it all depends on whether you want to build features into your platform to encourage smaller investors, or not.
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