The demand for investment opportunities on Lending Club may be outpacing the supply. Consider that some of the best loans on Lending Club are funded within 30 seconds of hitting the platform. It takes an extremely active lender to find and fund the best deals.
However, Lending Club has an API, and a new service aims to make use of that API to help combat the fact that the best deals are often funded faster than many lenders can find them. The service is called LendingRobot, “a provider of investment automation and data services for the rapidly growing peer lending market.”
LendingRobot founders discovered the most lucrative loans are funded very quickly, and even when dedicating significant time it is hard for individual investors to constantly reinvest their portfolios. LendingRobot evolved from efforts by the founders to automate their personal peer lending investments.
Now open to the general public, the LendingRobot service helps investors successfully fund those loans in highest demand and/or best meet their personal investment criteria. Users define what kind of loans they want to invest in using a simple yet powerful set of filters. Unique to LendingRobot, they can also define a cascading set of rules to invest simultaneously in different loans profiles. The cloud-based service then tirelessly works to invest and reinvest according to those filters.
Investors’ funds always remain in their Lending Club accounts and LendingRobot has no access to investor funds. LendingRobot provides a daily activity report and lets investors modify their investment criteria at any time. LendingRobot enables better investment selection, reduces the amount of time required and ensures idle cash is continuously reinvested.
The service has been in private beta since September and the team says it has been hailed as a great tool by early users. “LendingRobot makes investing in peer-to-peer loans easy and efficient. It allows me to find the exact loans I want without having to sort them manually. Great product!” says Brendan B., an early user. According to Don B., another early LendingRobot user, and Lending Club investor since 2008, “LendingRobot has changed my relation with Lending Club, in less than one week”.
LendingRobot, which exits beta today, charges a fee based on the investments successfully funded by the service. There are no set up or fixed costs.