Prosper Marketplace, one of the largest marketplace lenders in the world, has become the first US platform to open its data up to AltFi Data – the UK analytics firm. As part of the arrangement, Prosper has shared complete historic loan portfolio data, and its performance can now be stacked up against UK competitors, such as Zopa and RateSetter.
AltFi Data’s analytics engine now feeds on highly granular data from Prosper,Zopa,RateSetter,Funding Circle and MarketInvoice. Investors can compare the performance of these platforms on a like-for-like basis, despite the wide range of asset types and geographies that they encompass. Net returns, losses and arrears, terms, volumes and a whole host of other key metrics may be reviewed using the analytics engine.
AltFi Data believes that standardisation of this kind will help to promote the widespread adoption of online lending as an asset class. Ron Suber (pictured above), president of Prosper Marketplace, seems to agree.
“Prosper’s investors want customized tools that help them analyse and visualise loan level data and performance,” said Suber. “By integrating with AltFi Data, we now have another independent member of the industry’s ecosystem delivering standardized metrics so that investors have the ability to compare and contrast performance of loans originated through Prosper against other marketplace lending platforms.”
AltFi Data is rumoured to be nearing a deal with a European platform which would again expand its coverage geographically. Founder and CEO Rupert Taylor sees the firm’s work as critical to aligning incentives between platforms and investors.
“Due diligence should allow investors to identify two critical characteristics in an originator platform: competence and alignment,” he said. “Platforms that allow verified disclosure of asset performance to a comparable standard can demonstrate both.”
“Institutional investors are encouraged to discover the existence of data representing verified performance to a consistent standard,” he continued. “Combined with origination volumes which now amount to a significant deployment opportunity this is encouraging large institutions to begin to review making their first investments in the online lending sector.”