Well, here's another reason for me to be upset that I missed the LendIt conference in New York this year.
The LendIt conference hosted by Peter Renton of Lend Academy was a huge hit. The excitement was bubbling over in the speakers and the bright future of peer-to-peer lending was being celebrated and plans for the future were discussed.
Ron Suber, President of Prosper Marketplace began his keynote speech with a very fitting illustration of how "must-have" technologies start out as far as perception is concerned. He highlighted the novelty of the cellphone in its early days, the first time someone called you and told you to "Guess where I'm calling you from right now!", it was once a novelty, now cell phones are virtually a must have technology. But there was a progression.
Mr.Suber lays out where we are in the progression of the peer-to-peer lending industry as of today, where we need to go and how to get there.
It was a thrilling and informative closing keynote speech. Grab a coffee and check it out below...
LendIt Conference 2015 Closing Keynote Speech
The peer-to-peer lending platforms have seen great success so far, they've attracted the banks to invest in the p2p lending platform and form alliances, the industry has seen Lending Club enjoy a wildly successful IPO, and finally, loan securitization happened this year (one rated, one unrated) and they are trading well.
In the journey of going from novelty to household name, Ron addresses the LendIt conference crowd and discusses some of the things he believes need to be done in the p2p lending sector to continue the rapid growth.
Ron believes there are three legs to a successful p2p lending platform: innovative products, diversified long-term capital and what's under the hood (pricing, servicing, credit, underwriting, etc). Security is a major issue and requires huge investments. Other important factors include investment in KPI’s along with great analytics, employees, tech, and transparency. This will allow peer-to-peer lending platforms to scale and grow securely for the long term, but as the industry continues to mature, rates will rise and some platforms will inevitably fail.
Ron highlights that securitization is the current secondary market and warns of dangerous derivatives will come if we are not careful. He then sets the future agenda for the the peer-to-peer lending industry, or as he calls them, the "BHAGS" (Big Hairy Audacious Goals). I'll set my sites on being one of the attendees for LendIt conference 2016 to see if they are met. Don't bet against it.