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Thread: Harmoney

  1. #4171
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    The proportion of institutional funding to retail funding has been gradually tracking up. This is despite unsatisfied retail lender demand. The conclusion must be that Harmoney prefer the institution lender “peers”. With Harmoney itself also becoming an institutional lender, could it be that retail lenders will be further squeezed into a small proportion of available notes.

    https://www.harmoney.co.nz/investors...ace-statistics
    Retail vs Institutional Funding graph at end of page.
    Last edited by Bjauck; 11-03-2019 at 12:29 PM.

  2. #4172
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    Quote Originally Posted by Bjauck View Post
    The proportion of institutional funding to retail funding has been gradually tracking up. This is despite unsatisfied retail lender demand. The conclusion must be that Harmoney prefer the institution lender “peers”.

    https://www.harmoney.co.nz/investors...ace-statistics
    Retail vs Institutional Funding graph at end of page.
    I don't know but that may just be the stats for the market open to retail investors....

  3. #4173
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    From 4 or 5 pages back:
    Quote Originally Posted by myles View Post
    In the last 3 years the Retail:Institutional loan volume split has gone from 70% to 85% in favour of Institutions (note that this is a halving of the retail allocation).
    Quote Originally Posted by Bjauck View Post
    The conclusion must be that Harmoney prefer the institution lender “peers”.
    Or does it have something to do with Business Continuity?

    Added: The danger for Harmoney - something Leesal highlighted a little while back - are borrowers happy that they are not borrowing from other Kiwi's... If the borrowers begin to care, it could be a real risk to Harmoney's future - i.e. without borrowers...
    Last edited by myles; 11-03-2019 at 12:39 PM. Reason: Added:

  4. #4174
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    Quote Originally Posted by myles View Post
    From 4 or 5 pages back:




    Or does it have something to do with Business Continuity?

    Added: The danger for Harmoney - something Leesal highlighted a little while back - is if the borroweres are happy that they are not borrowing from other Kiwi's... If the borrowers begin to care, it could be a real risk to Harmoney's future - i.e. without borrowers...
    Is another risk that there may be an investigation by the FMA if it receives complaints from disgruntled retail lenders, who are forced to withdraw funds for lack of available notes as a result of the increased proportion allocated to instos?

    Halving the allocation to retail lenders indicates they prefer their institutional lenders. They could adjust the institutional mix to 90 or 95% for “business continuity” in the future?
    Last edited by Bjauck; 11-03-2019 at 12:49 PM.

  5. #4175
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    Quote Originally Posted by Bjauck View Post
    They could adjust the institutional mix to 90 or 95% for “business continuity” in the future?
    Or 100% if that's what it takes for them to continue. Would that be grounds for any action - quite possibly not.

    I have hope that the current situation is a 'growth phase', that at some point will turn back, but it is only a hope.
    Last edited by myles; 11-03-2019 at 12:58 PM. Reason: typo

  6. #4176
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    I e-mailed Harmoney regarding retail loan volumes last month. Below is my e-mail, and their response..

    Good afternoon,

    Looking at the marketplace statistics page on the website, it looks as though the percentage of money being diverted to Institutional investors is now as high as 80% of all money lent through Harmoney.


    I'm a big fan of Harmoney, and wish to increase my portfolio of loans over 2019 and beyond. However, I'm finding it incredibly difficult to invest in new loans, and no doubt this is the same story for other retail investors.


    I was wondering if you could provide an update, or guidance of when retail investors can expect to see an increased number of loans on the retail marketplace?


    Kind regards,
    alundracloud

    Hi alundracloud,


    Thank you for your email.



    Yes, the current allocation is set to ~80% Wholesale and ~20% Retail, however, these percentages are monitored by the Exec Team and changed depending on the overall volume received as well as monthly targets.


    The percentage allocation for Retail was around the same for January, however, we had higher volumes in January (~$35m overall). This would be why there would be a noticeable drop in the number of investment opportunities for the month of February as our overall volume for Feb was around $30m.


    We tend to see the overall volume increase in March, historically, and do hope to see more investment opportunities available to Retail. This can come about with more volume or a higher percentage allocation. Our Marketing team is working to have the volume increased as much as possible.


    To help in deploying your funds, please try checking the Marketplace between 9-11 AM and then again between 2-4 PM. We see favorable volumes of loans during those times.


    Hope this helps and have a great weekend.
    Read into it what you will, but I struggled to take anything positive from the response.

  7. #4177
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    Quote Originally Posted by myles View Post
    Or 100% if that's what it takes for them to continue. Would that be grounds for any action - quite possibly not.

    I have hope that the current situation is a 'growth phase', that at some point will turn back, but it is only a hope.
    Is it still peer-to-peer, if institutional “peers” are treated differently from other peers? I think the spirit of peer-to-peer is lost. Also the allocation of loans to different market places for instos and retail is contrary to what I imagined was the concept of P2P. However it may still pass muster as far as the FMA is concerned.
    Last edited by Bjauck; 11-03-2019 at 01:36 PM.

  8. #4178
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    Quote Originally Posted by Bjauck View Post
    Is it still peer-to-peer, if institutional “peers” are treated differently from other peers? I think the spirit of peer-to-peer is lost. Also the allocation of loans to different market places for instos and retail is contrary to what I imagined was the concept of P2P. However it may still pass muster as far as the FMA is concerned.
    That, I believe, is one of the main issue with P2P in NZ, it (peer-to-peer) was never clearly defined by ComCom.

    The whole concept of peer-to-peer is more about doing away with the central controlling entity and allowing peers to more closely interact with each other. Within the constraints of privacy and security, this is how the Harmoney platform works, both for retail and institutional investors.

    I agree that it is not in the 'spirit' of what most think P2P to be, but does that matter?

  9. #4179
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    It seems fairly simple to me - Harmoney has been losing money from day one by running a P2P platform, so has decided that borrowing money from a bank and taking a lending margin is the way to keep its business alive - so as retail lenders we should not expect any better than what we are getting.

  10. #4180
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    Quote Originally Posted by Harmoney View Post
    We tend to see the overall volume increase in March
    Waiting, waiting, waiting...

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