LCPicks

Fantasy Sports and Peer to Peer Lending

With the NFL fantasy season winding down and the NBA seasons in full swing, it’s interesting to look at the parallels between fantasy sports and peer-to-peer lending. 

Let’s look at some basic concepts around peer-to-peer lending and what the parallel concept is for fantasy football. 

Diversify:Setting up a strong peer to peer portfolio is the same as picking a strong fantasy team. A good strategy in fantasy is to have a mix of consistent performers (A and B loans on Lending Club) that give you the base performance that you can count on and a few “lottery picks” (D and above loans) that might get you big points throughout the season. If you go with all lottery picks you face a lot of variability some players (or loans) will hit big, but usually most of them will flame out give you nothing. Those losers will often wipe out the gains you got from your other picks. If you go too conservatively, and have all consistent performers, you limit your ceiling. You will probably never have a bad week but you’ll also never have a record setting week. Diversification is the key to maximizing your performance over the long haul, and figuring out how to pick those “lottery picks” is what makes fantasy sports so fun. LCPicks helps you pick those lottery picks on LendingClub, giving you more information about each loan in an easy to view dashboard so you can see the most promising loans that still have high returns. 

Get the Superstars:Obviously you want as many of the consistent superstars like LeBron (on LendingClub that might be the E loan that is guaranteed to pay off), but they are few and far between. Plus the only way you can get those superstars is by getting the first pick in the draft. Lending Club sends out new loans for purchase 4 times a day, and the best loans get purchased within minutes. How do you make sure that you get a chance to buy those loans? You have to be ready to act right when the new loans get released. One way to do this is to download the new data directly from LendingClub when they announce the newly available loans. Then sift through all the data and find the ones you want to invest in. Then go back to lending club and hopefully they’re still available for purchase, but usually folks with automated investment services (whether that’s a broker or other service) have gotten to them first, and then you have to start going down your list to find the next best option.

We get it, we used to do it that way and got frustrated by losing out on the most promising looking loans. Which is why we created LCPicks. We used machine learning to create an algorithm that gives a score to all the new loans right when they come out. LCPicks sends a notification email immediately and you can choose from a handful of the best loans to invest in instead of looking through several hundred loans. It’s like you’re getting the first pick of the draft every time. As we all know, the first pick of the draft doesn’t always work out but more often than not that pick is the reason you win your season and can be the way that you get the best results on Lending Club. 

We find that people don’t think twice about spending hours researching their fantasy lineup for the week, but often they don’t want to spend the same amount of time on their investments and LCPicks wants to give you that leg up so you can work more efficiently when choosing your investments.  

Happy Investing!

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