A specialist access platform in the US by the name of LendingRobot has set out to deepen liquidity in the LendingClub secondary market.
LendingRobot is an automated, online investment service which currently facilitates investment through the LendingClub and Prosper platforms. The access platform was founded in 2013, and has raised $3.7m in funding to date. The company’s client base has seen year-on-year growth of over 1,000 users.
On Thursday last week, LendingRobot unveiled its latest innovation: fully automated transactions on the LendingClub secondary market. The new service entails automatically listing, pricing and repricing all of the P2P platform’s loans, and then reinvesting user income within the secondary market according to pre-determined criteria. Previously, secondary market investors were forced to assess and compare thousands of available notes on the LendingClub secondary market by hand – a time-wasting and inefficient process.
Emmanuel Marot, Co-Founder and CEO of LendingRobot, explained:
"If there's one problem, it's the lack of liquidity. If you want your money back, you have to wait a while to get it back."
The impetus behind the move is to create a smoother P2P experience. Mr. Marot suggested to CNBC that a fundamental shift – away from sophisticated investment enthusiasts, and towards everyday investors – has taken place within the P2P space over the past 5 or 6 years. The average investor is not especially interested in the inner-workings of the LendingClub marketplace – but they are interested in knowing that they can get their money back ahead of schedule. LendingRobot will hope to satisfy that need by increasing the flow of capital into LendingClub’s secondary market.