Scaling P2P Lending with Institutional Investors

Scaling P2P Lending with Institutional Investors
Panelists: Harsh Patel, Vice President Victory Park Capital; Bill Kassul, Partner, Ranger Capital; Etienne Boillot, CEO & Co-Founder, Eiffel eCapital; Simon Champ, CEO of Eaglewood Europe; Karan Chabba, Portfolio Manager at KLS Diversified
Moderator: Rory McHugh, Head of Structured Finance & Automated Treasury Solutions, RBS

Mr. Patel first asked the panelists how P2P investors choose platforms. The panelists offered a variety of criteria, including secured lending, high yield, low volatility and customer origination; platforms specializing in a particular segment of lending; verification of promises given by platforms; and a unique proposition.

The panelists also discussed active versus passive fund selection strategies, and the approach favored by their firms. Another topic was the outlook for the European online lending market. The panelists mentioned increased regulation, as exemplified by France and Spain; the prevalence of startup platforms; and the arrival of capital, which will help the European ecosystem grow.

Securitization as an important leverage tool was discussed next. The panelists noted the difference in US and UK marketplace lending returns; banks’ increasing interest in warehouse lending; and the need for platforms to concentrate on their core activity - origination and servicing of loans.

The participants closed by discussing general factors they focus on. This list included underwriting and customer acquisition strategy, the challenge of scaling, and customer origination, among others.