http://blog.lendingclub.com/2007/12/09/lending-club-welcomes-zopa-person-to-person-lending/ The Official Lending Club blog Sun, 29 Jan 2012 13:31:47 +0000 hourly 1 http://blog.lendingclub.com/2007/12/09/lending-club-welcomes-zopa-person-to-person-lending/#comment-437 Eric Sun, 16 Dec 2007 00:25:15 +0000 http://blog.lendingclub.com/2007/12/09/welcome-zopa/#comment-437 I just got turned down for a loan at Zopa and I have no clue as to why as of yet. I thought Zopa was a P2P model, but it looks like a bank just reviewed my application and turned it down in less than a couple of hours. This just leaves me to think - what the heck is Zopa? Why didn't I just apply at the bank? I figured at least getting people to "bid" on the loan would help to reduce the risk to the bank, thus increasing the chances for it being funded. Dang - yet another possible good idea neutralized by some weird business concept. I just got turned down for a loan at Zopa and I have no clue as to
why as of yet. I thought Zopa was a P2P model, but it looks like a
bank just reviewed my application and turned it down in less than a
couple of hours. This just leaves me to think - what the heck is
Zopa? Why didn't I just apply at the bank? I figured at least
getting people to "bid" on the loan would help to reduce the risk
to the bank, thus increasing the chances for it being funded. Dang
- yet another possible good idea neutralized by some weird business
concept.

]]> http://blog.lendingclub.com/2007/12/09/lending-club-welcomes-zopa-person-to-person-lending/#comment-436 usnelcid Wed, 12 Dec 2007 04:43:16 +0000 http://blog.lendingclub.com/2007/12/09/welcome-zopa/#comment-436 Kudo's for your warm welcome of Zopa. I checked out Zopa's site last Wednesday because I was interested in diversifying my P2P lending business portfolio and I was disappointed by the business model they chose. It's quite different from their UK operations, which I would have invested in if I were a UK resident since they are similar to lendingclubs. Their US structure has too many things working against it for me to seriously consider investing in it: Compared to lending club borrowers pay higher interest, lenders get significantly lower returns, and the "help" system is a conflict of interest when a person is aggressively pursuing higher returns. As a philanthropic venture it is an excellent way to feel good about how you save your money, but the most I would ever invest in it is my short term savings reserve. Kudo's for your warm welcome of Zopa. I checked out Zopa's site
last Wednesday because I was interested in diversifying my P2P
lending business portfolio and I was disappointed by the business
model they chose. It's quite different from their UK operations,
which I would have invested in if I were a UK resident since they
are similar to lendingclubs. Their US structure has too many things
working against it for me to seriously consider investing in it:
Compared to lending club borrowers pay higher interest, lenders get
significantly lower returns, and the "help" system is a conflict of
interest when a person is aggressively pursuing higher returns. As
a philanthropic venture it is an excellent way to feel good about
how you save your money, but the most I would ever invest in it is
my short term savings reserve.

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