Peer-2-Peer Lending: Changes I'd Like to See at PROSPER.COM

Bottom line: I make three recommendations as to what Prosper should do to improve the lending experience.

(1) Offer IRA option... It's increasingly important to offer pseudo real-return investment alternatives.

(2) Provide metrics to grade groups, such as:

(a) Red/green light indicator next to groups to indicate if group's portfolio of originated loans as a default rate below or above Prosper.com averages. This is important to identify whether those groups screen applicants sufficiently (Indicator lights recommended b/c they provide a quick indication. There are obviously other ways to accomplish the same goal).

(3) Improve "search loan" filter to include:

(a) Lender rates greater than or equal to (enter value)

(b) Specific borrower credit characteristics (now delinquent, number inquiries last 6 months, etc).

(c) Include only those loans with picture(s) and write-up, while this may not have a material impact, it has an impact on the screening process experience.

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