Posted by Rex Dixon :: May 24, 2007 @ 3:48 pmLive!
Welcome to the Lending Club blog. We are very excited today to be part of this fantastic new Facebook platform and service launch. We believe it to be a grand opportunity for our young company and for Facebook members. Facebook is one of the fastest growing social networks today, with 24 million active users and more joining every minute.
We started Lending Club with the idea that trusted social networks and affinity groups were a great place to deliver a person-to-person lending and borrowing service. In selecting our first partner, we looked hard for a social network that its members trusted to deliver more than just a good time. Validation and trust are critical to us. Facebook provides that level of relationship and validation in a way few social networks do. When you are dealing with money, either as a borrower or lender, you need a sense of camaraderie that goes beyond drinking buddies.
Lending Club is creating a direct person-to-person shortcut in borrowing and lending, bypassing the traditional role of the banks. Banks usually collect deposit on one side and extend loans on the other side; we provide a shortcut, a way to directly match lenders with borrowers. Starting today, we are offering a way for Facebook users to take personal loans of $1,000 to $25,000 funded by other Facebook users. Members who have the financial capacity are now able to extend loans to a portfolio of other members they choose from their network, neighborhood, and alumni. Loans carry a lower interest rate than bank loans but higher than a savings account, so both lenders and borrowers get a good deal.
Person-to-person lending delivers great value to both lenders and borrowers, but can also present risks to the lenders. Making the service available to trusted social networks and other affinity groups reduces the risks by leveraging existing groups, connections and relationships among people, and make sure we all help each other.
11 Comments
Let me be your all time first commentator ever. Rex, congratulations on your new venture and gig. I am happy that you are doing what you love.
This could be perfect timing for me to try out this service as my Internet startup will be needing some extra startup cash in the very near future. Looking forward to create a mutual beneficial relationship.
Jimmy Huen
Founders Cafe
I will be very curious to see how much traction this gets in Facebook. I hope it works well for all parties involved.
Hey, Rex -- This is very cool! Congrats on the gig! Hope you are well. Alex.
Social Strategist's Guide to the Facebook Open Platform...
[...]This is the 6th most trafficked site in the U.S. giving everyone access to their users, free of charge. And believe it or not, that's only part of the reason why ...
Congrats on being the first competitor to prosper
Very cool!
I think the new Facebook F8 platform is killer and with great apps like LendingClub, it'll be a *hit*
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Congrats on entering this space. With the Prosper already here, the Virgin announcement, and Zopa coming, its an exciting space.
Kudos to you Rex!,,,and congrats on your new project....bestest of luck...Looks like its shaping up to be something big.
Congratulations, Rex!
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