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Analytics on Lending Club social lending by Dataspora
<p> <a href="http://www.dataspora.com/2011/10/mining-lending-clubs-goldmine-of-loan-data-part-i-of-ii-visualizations-by-state/">There is a fantastic analysis</a> using the <a href="https://www.lendingclub.com/info/download-data.action">Lending Club datastore</a> to investigate and visualize the marketplace Lending Club blogged over at <a href="http://www.dataspora.com/">Dataspora</a>. As I've mentioned before, I'm intrigued with P2P finance as an emerging industry, and if we're lucky, as an alternative asset class. As an emerging industry, we're seeing a number of different competitors rapidly enter and exit the industry, and regulations that fit it like a hand-me-down sweater, a little too big, clearly made for the problems of a different industry: the financial older brother they most resemble, but are distinct from.</p>
Read more…Announcing: the ARIMA sector forecast report series is live
<p> For several months now, I've been putting together <a href="http://www.designandanalytics.com/ARIMA-Sectors">an automated econometric forecasting platform</a>. Using a simple ARIMA model, I've created a forecast for stock sectors to inform my own short-term option trades. Despite being a statistical model, rather than a foundational one about informationally poor stocks, I found it useful for my purposes---though I make no promises about yours---and developed this infrastructure in order to share it online. Even if you're not interested in stock market movements, the further utility of the platform is as a demonstration of the capabilities of reports automation: this platform runs an analysis every day, makes forecasts, charts, typesets instructions and accompanying advertizements, and publishes them to PDF and in an animated gallery online. This is an analysis that once automated, never again needs human intervention. That's a powerful thing, especially in how it frees <em>this</em> human to solve new problems.</p> <p> Here it is: <a href="http://www.designandanalytics.com/ARIMA-Sectors">http://www.designandanalytics.com/ARIMA-Sectors</a> And <a href="http://www.designandanalytics.com/newsletter/subscriptions">here is where to sign up</a> for the newsletter providing coverage.</p>
Read more…The future of finance? P2P equity and VC funding
I'm optimistic about the efficiency gains coming from direct P2P entering the finance market, and with some skeptical reservation believe that this is where finance is heading generally---disintermediation can be a beautiful thing for market efficiency and participatory transparency. As a survey: sites like Lendingclub and Prosper have gone far already in establishing the market for P2P credit. Kiva and Grameen have done impressive things for P2P donation and microcredit models, and Kickstarter has been exceptional in artistic donation services. Rather than waiting for banking institutions to evaluate the profitability of their ideas or causes, individuals are gaining increasing access to funding the opportunities they support, on terms they define themselves.
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