There’s something of a drop off in lending volumes behind the world’s largest pair of peer-to-peer consumer platforms – Lending Club and Prosper. But that doesn’t necessarily equate to a drop-off in quality.
One of the more intriguing consumer-facing propositions out there is Peerform. Founded by a group of Wall Street executives way back in 2010, the platform has recently tweaked the model somewhat in an effort to accelerate growth – which has been fairly steady up to now. Peerform’s exact cumulative lending figure has not been disclosed, but we’re assured that it’s somewhere in the millions. But scale is not especially high on Peerform’s list of priorities. The sophisticated investor-facing platform is far more concerned with providing a next-level service – in its own words, the leading “white glove” platform within the US market.
We caught up with Chairman of the Board Gregg Schoenberg to learn more about the background and direction of the platform.
1. Could you give us a little info about the management team and how and when Peerform came about?
Peerform was founded in 2010 by Wall Street executives with extensive backgrounds in Finance and Technology.
Peerform created a marketplace lending platform that would be beneficial for both the borrower and the investor. More specifically, the borrowers would be able to obtain a loan through a process that is clear, fast, and fair.
At the same time, investors would be presented with a well-vetted choice of investment opportunities that provide a chance to achieve favorable risk-adjusted returns.
Peerform’s management team has extensive experience in credit analytics, technology, banking, operations and investment management. We’re all very passionate about our work and excited about the company’s future. The day-to-day office environment is full of energy with ideas constantly being floated around on how to better achieve Peerform’s objectives.
2. How much has been lent via the platform thus far in terms of cumulative volume?
The exact number is confidential, but it's a nice seven figure amount.
3. So Peerform has actually been around a while – but as we understand it has recently undergone a fairly significant structural change. Can you explain more about this?
We on boarded a new pricing model in Spring which is far more advanced. In addition, brought on several talented individuals in operations, business development and technology to accelerate our growth.
4. Who can borrow via the platform?
Individuals from about half of the states in U.S. including many of the most populous ones.
5. What types of investors are you targeting?
We are targeting "accredited investors" with a focus on institutions. These kinds of sophisticated investors expect a high level of service from us, but we are up to the challenge. We look to bring leading edge attributes to the table that run the gamut from our loan pricing methodology to our technology infrastructure to our anti-fraud measures.
6. What are the platform's plans for expansion?
We want to grow our base of borrowers and accredited investor clients. At some point next year, we also plan to roll-out some interesting innovations that will offer more choice to our clients.
7. Where do you see the platform in a year's time?
We believe we are well positioned to be the leading "white glove" platform in the industry. We will not be the biggest player, but when it comes to providing superior service and leading edge innovation, Peerform expects to be a respected player.