I am very curious about peer to peer lending as a potential investment strategy. I have wondered a few times in the past why investors don't make loans as part of an investment strategy.
When I bought my house I found some people who were doing just that - I think it was like an investment company that invested in home loans. In this case I went with this alternative based on personal recommendations and the fact that I could get the deal done quickly. They gave me a good rate with no schmoozy sales pitches and made the lending process very easy. They turned around and sold all the loan to a bank within a month of the sale of the house.
Lending to a person vs. investing in stock seems more tangible to me for some reason, but it could be just as or more risky depending on the person. But it's like a dividend - it's pure money not something that may or may not go up in value like a stock or a house. There are pros and cons to every investment strategy but I decided to do some research in this area.
Here are some links with more information:
CBS Review of Lending Club
Growth of Peer to Peer lending - a market place which removes some of the traditional risk of a bank:
Lending Club CNBC Top 50 disruptor
NASDAQ says good addition to lending portfolio (wondering if and how this endorsing post may be related to upcoming IPO...)
Google invests in Lending Club
Hedge Funds and Banks Taking Investment Away From Peer Investors
Wells Fargo Bans Staff From Investing in P2P Lending
Loss rate on verified and non-verified income
American Household Credit Card Debt Statistics 2014
Various Lending Club Strategies and Results (web search, not verified):
Lending Club Going Public