Apr 22 2008
What Should Prosper Do
I believe Prosper started a great business concept, but they are not adjusting to the needs of the lenders. There is much discontent on the Internet about Prosper.com, but I sincerely believe if they made some serious course corrections, they still have a great business opportunity.
Why I Think Prosper.com is Struggling
I have wondered if they do not have enough lenders. They run referral promotions to solicit new lenders. They have a lot of data and experience, but there are a number of blogs and comments by unhappy lenders. Just the data at LendingStats tells me that things are not going well. Whether or not my assumptions are correct, I have some suggestions for Prosper.com that would keep their business growing and thriving.
Suggestions for Prosper.com
- collatoralize loans
- vastly improve collection performance and aggressively pursue delinquent borrowers
- listen to lenders
- listen to borrowers
- listen to group leaders
- listen, listen, listen…. did I mention listen?
- bring back standing orders or greatly simplify portfolio plans
- effectively communicate decisions and rationale timely
- engage in an open forum with lenders and borrowers and group leaders - get feedback from their customers and really listen. Prosper Days is not an open forum.
- post collection activity and results for late loans to keep lenders updated on status
- pull out of bad performing and lender unfriendly states. Look at the Loan Map. New Mexico, Texas, Alabama, New Hampshire, and others have appalling delinquency rates.
Please pass these suggestions onto Prosper.com. Perhaps there’s still a chance they’ll listen and make adjustments. Until then, I’ve stopped prospering at Prosper.com.
What suggestions do you have?
I had a terribel experience on Prosper. I have AA credit and was funded and then Prosper emailed me that they had cancelled my loan becasue I am not a resident of the US! I provided all the credentials, address, bank account, everything and by the way I have been a voting, driving, working American citizen for 56 years! It was astounding and a big waste of my time and the poor lenders that had a fabulous borrower in me. And to top it off they would not return my calls, speak to me personally nor allow me back on the web site. Talk about discrimination. That has to be illegal!
Just my personal experience with the PROSPER.
Jeanne, I’m sorry you had a bad experience as a borrower. Unfortunately, this site is designed for lenders. I can say that I’ve not always had good experience with Prosper support and contact. Good luck.