Ditto BJ1. Due to both diminishing loan quantity and quality available to retail investors now, I for one, have continued my withdrawals. Just under half my peak investment has been cashed out now. :t_down:
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A very, very interesting podcast (transcript also available) of the ins and outs of Harmoney:
Podcast 216: Neil Roberts and David Stevens of Harmoney
Yes Myles. Some definite avoidance around the question of exiting the peer part of the business. They are there to make money for themselves and will continue to expand their funding bases to be owner lenders, not P2P.
Cheers for putting that up Myles. This bit says it all :(
Peter: Right, so are you going to eventually shut down the peer-to-peer side of the business?
David: No, look I think we’re sort of…I said we look at the diversity of the business in funding. At this point in time, we’ll obviously look to…over time, we’ll continue to assess that, but certainly, we’ve got a lot of lenders on the books at the moment and that does create that diversity for us which is a good position to be in.
"we've been slowly operating a pivot and moving to lending our ownmoney which we started to do December last year and we're rapidly, you know, picking that sideof our business up because the regulations, particularly in New Zealand are such that we don'tsee a viable model for us doing peer-to-peer lending way into the future and we are sort ofmanaging that and have been for some time"
Bit more information from today's Interest.co.nz article; https://www.interest.co.nz/personal-...ember-2014-has.
If they complete the capital raise, could that money be used to buy out existing retail investor loans?
More written at interest.co.nz this morning including comments from Squirrel & Lending Crowd....
https://www.interest.co.nz/business/...eres-no-viable
I think Harmoney got greedy, and strayed out of its permit scope too much by increasingly listening to and trying cater to the instos alone - in the end even at the cost of its "retail" peers. It isn't graceful to blame regulations for your own follies. And by playing the blame game, one misses the opportunity to learn from one's mistakes...
P2P will survive in NZ, with or without Harmoney. Thanks to the efforts and vigilance of ComCom and FMA etc., P2P in NZ is in much better shape than in some of the other countries around the world.
If Harmoney quits, other fintechs will pick up the slack and grow and evolve, and newer players will come - even in a small market like NZ, because the Aussie Banking cartel simply won't change its ways here. It is for Harmoney to decide whether it wants to play by the P2P rules or not, if it wants to play in the P2P space.