Prosper Marketplace Reports Lucrative Q3 in Personal Loans Amid Overall Market Growth

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In recent years, the personal loan market has been showing immense growth as more consumers are starting to see the value in taking out personal loans for various reasons. In line with this overall trend, San Francisco-based Prosper has been one of the leaders in the personal loan market; in fact, the lender recently showcased its growth and revenue in 2017.

For the third quarter of 2017, the company saw a 6 percent increase quarter-over-quarter and a 164 percent increase year-over-year for personal loan originations through its platform. In that same time period, transaction fee revenue grew 5 percent quarter-over-quarter and matched originations with a shocking 164 percent increase year-over-year according to a press release from Business Wire.

All in all, the company has secured $1.5 billion in securitizations with 45 different partners. These numbers are staggering, but they are also in line with the current trend.

Looking forward, the company has high hopes for more growth, noting strategic investments of about $50 million from the third quarter alone.

According to the Business Wire press release, David Kimball, CEO of Prosper Marketplace, said, “As we look to the end of the year and 2018, our ability to consistently generate positive operating cash flow… will help drive strategic investment in the company’s platform and products,” noting the securitization.

This news is exciting for Prosper, but it’s also part of a much larger market trend for those in the personal loan business as mentioned earlier. Consumers are starting to take note of fintech companies and lending platforms as viable sources of funding and loans. Traditional lending houses, such as banks, differ from these innovative lenders, who are seeming to thrive, in several prominent ways: convenience, accessibility, and ease of use.

For consumers in need of loan, these companies could spell great news. A company like Prosper is the kind of disruptive company that brings changes to the industry overall, an industry that seems to be shifting towards internet marketplaces. Other companies, such as Marlette Funding, have been experiencing similar success this year, signifying the overall trend of growth.

When commenting on the personal loan as a product, CEO Kimball claimed that people are turning to personal loan products “to refinance high-interest debt, pay for medical expenses and finance home improvement projects.”

It appears that many consumers are starting to leave credit cards out of the equation by turning to a personal loan to pick up expenses or eliminate credit card debt. Overall, the market share of personal loans has grown, accounting for over $106 billion by mid-2017 according to an article by LendEDU.

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