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Institutional Relations

"Person-to-person lending is a small but fast-growing corner of the Web economy."
—The Wall Street Journal

"...peer-to-peer loans are emerging as another way to diversify a portfolio."
—Dow Jones MarketWatch

"...calls social lending 'a game-changing development in financial services.'"

"Most intriguing of all is the possibility that social-lending sites do a better job than their mainstream counterparts of assessing risk."
—The Economist

Institutional Investment through Prosper

Prosper is America's First Peer-to-Peer Lending Platform

Prosper's technology platform provides an exciting opportunity for asset managers, pension funds, hedge funds, family offices and other institutions interested in earning a great return through peer-to-peer lending. Prosper is America’s first, and largest, peer-to-peer lender, having generated over $1 billion in loans since February 2006.

We welcome institutional investors into the Prosper lender community.

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Peer-to-Peer Lending: An Alternative Asset Class

In turbulent markets, portfolio diversification is crucial for prudent portfolio management. Prosper offers investors a new asset class: consumer loans. Institutional investors can use Prosper to diversify their portfolios without the complexity associated with structured products.

Our commitment to data transparency offers registered lenders the ability to create powerful models and algorithmic trading tools. Lenders can build portfolios to meet their criteria for risk and return, and monitor the performance of the loans with real-time data.

Entering the Consumer Loan Marketplace: Positioning for Growth

Consumer credit is a $2.5 trillion industry. The decline of securitization for consumer loans has opened up the market for new innovations in lending. As peer-to peer lending continues to gain market share, firms that understand the market will capitalize on future growth.

Prosper is also rolling out a new initiative, allowing consumer loan originators to sell existing loans through our platform. As with our peer-to-peer listings, investors will have the ability to review credit details on each loan. This will create the world’s most open and transparent market for consumer loans.

Data Transparency & Technology

Prosper provides unbiased access to our borrower's credit data. This revolutionary transparency enables lenders to quantify and calculate an appropriate risk-adjusted return based on historical loan repayment performance on Prosper loans. Institutions can connect electronically with our API interface to analyze listing data and apply program trading modules. Third party developments in enterprise software help large institutions manage a peer-to-peer portfolio.

Traditionally, the only way to invest in consumer loans was through complex securitization vehicles. Investors had little visibility or control over the risk assessment process. This market has collapsed, largely due to the lack of transparency.

Prosper was built to provide borrowers and lenders with complete data transparency. Registered lenders have access to many levels of consumer credit data, including:

  • Credit Score using Experian Scorex PLUSSM
  • Prosper Score based on historical data
  • Loan Seller
  • Bankcard Utilization rate
  • DTI Ratio
  • Employment Status
  • Homeowner status
  • Length of employment status
  • Delinquency data
  • Occupation
  • Credit inquiries
  • Income range
  • Credit Lines
  • Prosper loan history (if applicable)
  • Loan repayment history (if applicable)
  • Collateral information (if applicable)

The data allows a fundamental understanding of a loan portfolio's underlying credit components.

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