What would possibly make you think they wouldn't? (Scaremongering...) Current loans are out to 5 years...
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No scaremongering at all. Just me thinking about HM's recent business model change but I forgot that they would still need the license for the current loan book.
Looks like harmoney are now only allocating 15% of the loan volume to retail
https://www.harmoney.co.nz/investors...ace-statistics
Really just a token gesture so they can still advertise as p2p lending I guess.
The graph shows *recent* proportion as 17-18%. If you look back over the graph it appears, to me at least, that *more* than 25% has been allocated to retail over the period (a rough guess cutting peaks and troughs is 30%). The current drop may well be a re-balancing to an average of 25%...
Perhaps it would be more appropraite if they gave up the pretense of being a P2P then, and morphed into a finance company etc., since they seem to be so focused on appeasing their wholesale partners.
Funny how wholesalers jump the Q while the little guys wait with their little wallets in a P2P finance provider. 6 weeks and counting... :t_down:
The 'Volume over time' graph clearly shows some 'slowing' of loan volume. Last week (10/06 - 17/06) there were only 124 loans - at 18% that's only 22 loans for the week, at 25% that's only 31 loans for the week. (about what I think went through)
The key question, I think, is what is currently impacting loan volume?
I've noticed a few more Harmoney ads on TV, but I don't watch much TV - so I'm guessing they are trying to increase that number...
I don't monitor Lending Crowd loans, but receive the emails, my 'gut' feel is that they have been offering less loans in recent times?
Perhaps a threshold has been reached of people converting from Credit Card to P2P, or perhaps it's just a very slow market at the moment?
I personally don't think Harmoney are out to crush the retail P2P lenders - it is a huge marketing bonus to sell the idea of Kiwi's lending directly to Kiwi's and 'sticking it' to the banks.
To be fair to Harmoney, the statistics (attached) show that there has been a discernible drop in loans (both value and quantity) since the start of the year. It is likely that the institutional placement is more aligned with a dollar value than a percentage of loan numbers so if the institutional dollar value investment requirement remains the same in a reduced market the percentage that they take will increase. The talk in business circles is that consumer confidence has dropped since the change of government - not necessarily because the economy has changed but I think people may be keeping their wallets in their pockets. The cancellation of National's "middle class" tax reductions won't have helped.
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