Digital Marketing/Social Media is Revolutionizing Education, Awareness, and Understanding of Alternative Investing
by Scott Jordan
“The Future of Peer-to-Peer Loans?
The Interview with Ron Suber, President of Prosper Marketplace”
Joseph Hogue, CrowdFunding Beat
Crowdfunding Beat – “How about the future of the industry? Where do you see peer loans in, let’s say, three years? Maybe even in five years?”
Ron Suber – “Continued integration of these peer-to-peer (P2P) platforms into the social network and the social community. If you look at Facebook today and go to the Prosper page on Facebook, you see thousands, tens of thousands of people telling their stories, sending in videos about how we helped them, and sending in photographs about the benefits of using Prosper. And you’ll start to see more and more of these technology firms embracing peer to peer (P2P) finance and payment. I think that will be a major driver in the next year or two ahead.”
Prominent FinTECH (Financial Technology) executives like Ron Suber, (President – Prosper), are realizing the benefits of marketing to borrowers/lenders on Facebook, Linkedin, and Twitter given social media’s “reach” (over a billion members on Facebook), and ease of sharing/building communities online including Friending” “Following” “Messaging” and “Liking.”
Below are the primary value propositions shared “virally” on social networks by leading FinTECH companies:
P2P (Prosper) TO INDIVIDUAL BORROWERS
► Refinance consumer debt, major purchases, small business loans
P2P TO LENDERS (INDIVIDUAL INVESTORS, INSTITUTIONAL CAPITAL/HEDGE FUNDS)
► Secure premium yields after default rates and fees
EQUITY CROWDFUNDING (HEALTHIOSXCHANGE) TO COMPANIES RAISING EQUITY
► Raise capital on a direct basis at lower fees (~Seed, Series Rounds)
EQUITY CROWDFUNDING TO INVESTORS (ACCREDITED, INSTITUTIONAL/VENTURE CAPITAL)
► Access to premium deal flow, lower fees, higher IRR
P2P/Marketplace Lending (Prosper) and Equity Crowdfunding platforms (HealthiosXchange) are increasingly utilizing social media platforms (~Linkedin) to build stronger relationships with existing members/customers stimulating repeat “purchasing” behaviors (lending, borrowing, investing), and reinforcing referrals to colleagues, friends and family.
Linkedin’s 1st (direct) and 2nd degree (indirect) connections directly influences user behavior facilitating communication, referrals, testimonials, “Followers,” and sharing/messaging.
Let’s now look at some of the leading social media strategies facilitating referral behaviors.Some of these strategies are basic while other complex, regardless, used in combination and with frequency, social media tools empower “Escape Velocity” or exponential member growth …
Financial Technology (FinTech) is revolutionizing the financial services industry, including the way investors participate in alternative investing. From Ally (online banking) to eTrade (online discount brokerage) to Prosper (peer-to-peer lending), to HealthiosXchange (equity crowdfunding), technology is redefining the way we bank, trade stocks, lend money, and invest in companies. Fueling the transition to online marketplaces are tech-savvy Millennials who find visiting banks and participating in offline investment groups an inefficient use of resources/time and more costly than online alternatives.