Ideas for the Mambu Banking Engine

Support secondary marketplaces for P2P loans

What: Support secondary P2P loan marketplaces by allowing to change funders for a active fractionalized loans.

The functionality would allow assigning the fractions already funded for a P2P loan to new investors, which would replace the original investor of said fraction.

For example, investor A would be replaced by a new investor in the loan, B. Investor B would use his own funding account to replace A's current principal fraction. Investor A would be reimbursed their principal amount in their funding account and will no longer be funding the loan.

Investors should also be able to assign only part of their investment to a new investor.

Support API availability for this.

Why: Many P2P organizations want to have a secondary market in which loan funders can sell their fractions of already funded loans to other funders, while the organization charges a fee for the service. This brings several advantages for the model, as it allows funders to cash out early for any of their funded loans and other investors to invest in loans that already have a proven track record.

  • Rodrigo Ocampo
  • Aug 17 2016
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  • Drew Broadley commented
    August 19, 2016 05:50

    To note, this would be important to allow the same type of association you have with creating loans/savings accounts, where you can define an AccountHolderKey and AccountHolderType so allow association to not just clients but groups too.

  • CJ Nordquist commented
    September 03, 2016 08:44

    This is a good suggestion, it must be possible to change funder/investor for a loan. That happens for many reasons – regardless if there is a P2P marketplace or not

  • Robert Morgan commented
    October 05, 2016 03:53

    Hi Mambu people, it's looking likely that we'll be keen to explore the timeline of this feature - as it allows marketplace loans to be initially funded from a warehouse facility, and then on-sold to other investors at varying tenors.  
    As Rodrigo noted above, the key to this feature appears very simple - at least in concept - allowing funding fractions to be transferred from one owner to another.
    We would be content to manage the transfer of sale proceeds as a separate API transaction, orchestrated in concert with the change in funding fraction ownership.