BitLendingClub Deep Insight Series: Defaults By Country

[BitLendingClub]

In the past year, BitLenidngClub has processed over 5500 loans, worth more than $4.4 million USD and the borrowers have come from over 70 different countries. We've learned a lot about the space in the progress and I wanted to share some of those findings with the community in a series of blog posts called the "Deep Insight Series". The first blog post discusses the Default by Country, I hope you enjoy it: http://blog.bitlendingclub.com/bitlendingclub-deep-insight-series-defaults-by-country/

Introduction Snippet:

BitLendingClub was founded on two core values in mind: be as transparent as possible (resources permitting) and only collect fees from the loan repayments. These core values differentiate us from any other lending marketplace out there and we still abide by them today. The unique thing about BitLenidngClub is that when a borrower defaults on a loan, we don’t make money at the expense of our lenders. Having your incentives properly aligned is a strong driving force to lower defaults, and lowering defaults is always an ongoing effort at BitLendingClub.

Our efforts in underwriting have been extremely successful: we’ve managed to lower defaults by 50% in the past 2 months. Our defaults went from an average of 17% in the months before March to 7.7%:


However, there is always room for improvement. One of the areas our lenders have always wanted to explore is the detailed statistics on loan origination and defaults by country. In this post, we will explore what are some safe countries to invest in and what are some risky ones.

Full Blog Post:
http://blog.bitlendingclub.com/bitlendingclub-deep-insight-series-defaults-by-country/

Kiril Gantchev | CEO of BitLendingClub | @kgantchev
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[josephno1]

What do you do differently from your competitors such as BTCJam to reduce the default rate? Like what did you change to reduce from 17% to 8%

[BitLendingClub]

What do you do differently from your competitors such as BTCJam to reduce the default rate? Like what did you change to reduce from 17% to 8%

We implemented certain underwriting rules, which helped us lower defaults. We no longer allow loans with a term longer than 9 months and borrowers can't have more than 4 active loans at a time. We've also implemented some additional post-processing of loans and we've enforced credit limits depending on the income. There is no silver bullet, but more of a comprehensive improvement of the underwriting procedures. It's an ongoing process within BitLendingClub.