CROWDBUREAU PEER-TO-PEER LENDING BENCHMARK

The CrowdBureau peer-to-peer lending benchmark serves as a standard by which the industry can measure or use as a basis for evaluation or comparison of market value, volume, interest rates for loans that have listed on a peer-to-peer platform on daily basis.  Further, there is loan origination benchmarks calculated monthly and quarterly that provide transparency into loan performance on the peer-to-peer lending platforms across the globe. Each benchmark has characteristics and definition described, http://crowdbureau.com/definition

THE PLATFORM DEVELOPER’S API

CrowdBureau’s Platform Developer’s API is an Application Protocol Interface that allows peer-to-peer lending platforms to access the CrowdBureau infrastructure to share loan book data. As a platform, connecting to our API gives you a direct connection to provide loan book data by using different data points such as borrower’s loan amount, loan progress, interest rates, loan type, income, country, loan status and much more up through loan origination process. Once the loan originates, monthly and quarterly performance data files by loans (unique id) should be provided, this is a transparent strategy for the market to evolve. CrowdBureau provides the necessary information you need to get started at http://crowdbureau.com/developers/, and you can connect to it for free.

WHAT DOES CROWDBUREAU MEASURE AND TRACK?

CrowdBureau tracks the events that occur on the loans that list on a platform through its origination. All listings do not become loans; although on most platforms there is minimum or maximum loan amount the borrower can accept once either the funded target amount is achieved.  Once a loan originates, CrowdBureau tracks the loan performance until the loan matures, defaults or charge-off.

FREQUENCY OF BENCHMARK UPDATES

CrowdBureau provides time series of benchmarks which include daily, monthly quarterly and yearly presentations. This determination is based on the activity from each platform that we receive data. Meaning that from day-to-day a platform with no activity (e.g. no data) will not appear in the daily benchmark.

IS THE DATA, BENCHMARKS REAL?

Yes.

The data that is displayed in the benchmarks for listings and loans is coming directly from each platform. Dependent on the peer-to-peer lending platform business model, we may not receive all lines of business.

For example, Lending Club, Policy Code 1 versus Policy Code 2 data. 

Policy Code 1 – are all listings/loans available to the public retail investor and what we receive in the listing files. Versus Policy Code 2  – are all new products that are not for the public (e.g., auto_ loan refinancing, auto_small business loans, etc.). We don’t receive these through the API.
Additionally, Listing Volume (CrowdBureau daily/monthly) versus Loan Volume (Lending Club quarterly file) – the Listings only have loans that are available to Retail Investors. At the end of the quarter, Loan Volume files include all of the listings that originated (e.g., retail) plus the transactions for Institutional Investor listings that originated. The variance in the numbers is due to that. This data is usually for an Institutional Investor Account but typically and is reserved for companies like Jeffries.

INCLUSION OF PLATFORMS THE BENCHMARKS

At the end of each quarter, CrowdBureau will rebalance the platform members and will include new platforms that have connected via the CrowdBureau Developer’s API or customized robot. The platform will be included in one or more of the benchmarks and is dependent on meeting CrowdBureau’s data standards.

WHAT IS A LISTING?

A listing is a loan whose loan progress is less than 100% funded for either the minimum or maximum target ‘ask’ amount. A listing is the ‘ask’ phase, no binding contract between parties (individuals, institutions) and indicates the ‘ask’ volume in the market. Listing benchmarks are updated daily.

WHAT IS A LOAN?

A loan is a listing that has loan progress equal to 100%; the borrower has met the minimum or maximum of the funding target from lenders. A loan is an active, binding contract between parties (individuals, institutions) which gives the loan/ credit volume in the market. Loan benchmarks are updated monthly and quarterly.

WHAT IS AN INTEREST RATE?

Interest Rate is the proportion of a loan that is charged as a percentage to the borrower, typically expressed as an annual percentage of the loan principal outstanding.

WHAT IS VOLUME?

Volume is the number of borrower applicants requesting loans on a peer-to-peer lending platform.

WHAT IS VALUE?

Value is the amount of money the borrower has requested for a loan. This amount can have a minimum, and maximum amount asked when the loan is in the listing phase.

WHAT IS REPAYMENT TERM?

Repayment Term is the borrower period to repay the loan. This term can be donated in days, weeks, months, years based on the peer-to-peer lending platform and each respective business model.

WHAT IS LOAN TYPE?

Most consumers have at least one financial product that they borrowed money for; this would include real estate loans (residential and commercial), student loans, consumer loans, business loans, agriculture loans, renewable energy loans, and more.

WHAT DENOMINATION OF CURRENCY APPLY TO THE BENCHMARKS?

There are three levels depicted for the benchmarks, 1) Continent – all currencies have been standardized to US Dollar. 2) Country – all currency has been standardized to US Dollar. 3) Platform – the platform level view is in its native currency of the nation. For example, the United States – US Dollar, United Kingdom – British Sterling, The 28 European Countries – Euro, China – Yuan or RMB, India – Rupee, Singapore – Singapore Dollar, Japan – Yen, and Switzerland – Swiss Franc and more.).

CAN I SEE THE UNDERLYING DATA AND RECEIVE CUSTOMIZED REPORTS?

Yes. Contact us or request a meeting to learn more.