Data for peer lending marketplaces such as Lending Club and Prosper are very transparent, which is a boon for statistical analysis.
Are you new to peer lending or uncertain about the details? Below are some things that may surprise you
It is natural to want to measure the amount of money one makes from a financial investment such as Peer Lending.
A healthy asset balance makes for steady returns.
We have seen previously how machine learning and statistics could help predicting how much money a loan would pay back.
Most of the time, lending institutions claim exceptional results are made possible through “better risk management.”
In a previous paper, we showed how we could predict the future return of a loan at its inception, based on historical data from the marketplace and the loan’s characteristics.
Deciding which loans to invest in, or gauging the ongoing performance of a portfolio requires investors to be able to predict how much a given loan will return before reaching maturity.