Harmoney

[RMJH]

I'm talking about the principle staff not the company.

How come your'e cherry picking is more accurate than Harmoneys methods?
Maybe you go into business as a credit scoring agency

There are always those who hope to beat the market. And good luck to them. Personally I take comfort in diversification (over 2000 loans) and it seems to work. That said I don't touch E or F or any business loans (which are sometimes hidden within Other). My overall return is about 20 pips above the platform rate though I did invest quite a lot in the period after rates went up but before investor charges followed suit. Arrears at about 3.5% but again expect these to deteriorate as my book matures.

[Harvey Specter]

As Harmoney usually has plenty of loans to invest in being able to manually cherry pick the best loans in each Grade will improve defaults further for yourself.

Finite has a point. Harmoney have much more info than you so how can you cherry pick. I also assume they will constantly be reviewing their algorithm based on actual data. Plus given all the anomalies noted on this forum, how do you even know you are basing your decision on the correct info

The simple things like dont loan to anyone dumb enough to be borrowing at over 20% for an overseas trip must already been factored in to a higher interest rate.

[kiwi_on_OE]

The simple things like dont loan to anyone dumb enough to be borrowing at over 20% for an overseas trip must already been factored in to a higher interest rate.

Which part is the dumb part? Going back to NZ at the end of the trip? ;-)

[IntheRearWithTheGear]

I wonder how they do debt recoveries on the charge offs.

For example i have 17 cents recovered out of $25 on a charge off.

Perhaps they sell the debt for a small fixed amount to a debt collector - who then attempts collects the full debt value to themselves ?

Anybody have any information ?

[Bjauck]

Which part is the dumb part? Going back to NZ at the end of the trip? ;-)

Lending money to a 20-29 year old single person for an overseas trip must be one of the riskiest types of loans... greater chance of their staying overseas and "forgetting" the loan.

[mccollr]

Trade Me’s foray into the financial services market is yet to prove a winner with its fledgling insurance business under-performing and an investment in loss-making peer-to-peer lender Harmoney causing a drag on profits.
The Wellington-based online marketplace and classified advertising business today reported a 9.2 percent revenue uplift to $218 million for the year ended June with its general items marketplace restoring revenue growth after a two-year absence. Underlying profit was up 3.5 percent to $83 million and the company had a one-off impairment charge of $8.1 million from its struggling online dating business FindSomeone.
Net profit was 1 percent lower due to accounting for losses from the group’s 12.4 percent stake in lending platform Harmoney, the country’s first peer-to-peer lender which is facing increased competition from the arrival of other licensed P2P lenders Squirrel Money, LendMe, Lending Crowd and PledgeMe.
Harmoney reported a $14.2 million loss in the 2016 financial year, compared to $6.3 million the prior year and Trade Me’s share of the loss from continuing operations was $1.6 million, double the amount the prior year. Head of marketplace Stuart McLean has joined the Harmoney board.
Macdonald says the investment is a good fit as the two online platforms have a lot in common and he has confidence that it will pay off in the long-term as the new model for the lending industry gains traction.
Like many early-stage technology startups Harmoney continues to make losses and Macdonald wouldn’t be drawn on what share of losses Trade Me may need to account for in the 2017 financial year. Harmoney has said it is targeting cash flow neutrality – where the money coming in matches the money going out – this financial year.
Harmoney burned through $13 million of cash in the last financial year, after raising almost as much through share issues, and Macdonald points out the valuation in its latest fund-raisings were at a higher level than what Trade Me paid for its stake though that revaluation can’t be accounted for in its books.
Trade Me launched its insurance arm a year ago, selling car, general and house contents insurance direct online. It is underwritten by Tower Insurance.
Sales have been low, though Trade Me wouldn't provide volume or revenue numbers, and has only carried out a low level of marketing so far. Macdonald said it was “early days” and he still believes in the long-term opportunity.
“We’ve had a few performance issues we’ve had to iron out. At the moment we’ve seen low volumes and lower than anticipated a year ago,” he said. “We’ve now got it to a place from experimenting and learning where we have confidence to scale it up.”
Trade Me acquired the life insurance comparison website Life Direct in 2013.
BusinessDesk.co.nz

[winner69]

Heartland say they have $37m loans through Harmony (can gomto $85m)

Suppose you guys are getting your your fair share

[Bjauck]

....
Harmoney reported a $14.2 million loss in the 2016 financial year, compared to $6.3 million the prior year....
Harmoney burned through $13 million of cash in the last financial year...
BusinessDesk.co.nz

Reasons why they have recently hiked up the fees for retail investors, no doubt.

[andrewfreestuff]

I'm new to this thread. I have read the last 30 or so pages and not seen this covered, but perhaps it was earlier.

What length of loan do you tend to target, 36 month or 60month, and why? Or don't you care.

Apologies if covered earlier, if so just point me to the comment(s)

Cheers

[Darchie]

I'm new to this thread. I have read the last 30 or so pages and not seen this covered, but perhaps it was earlier.


What length of loan do you tend to target, 36 month or 60month, and why? Or don't you care.

Apologies if covered earlier, if so just point me to the comment(s)

Cheers

My personal findings ... ive had far less grief all round from 60 mths
I Have a much higher number of 36mths loans in arrears with zero payments