Prosper’s Ron Suber: Our Competitors Are Not Here Today

Ron Suber at Lendit 2013 >>>

Ron Suber at Lendit 2013 >>>

When Ron Suber, Head of Global Institutional Sales at Prosper.com, said this at the LendIt 2013 Online Lending Conference, he was not referring to Lending Club, the other peer-to-peer lending giant, who by the way also sponsored the event, he was talking about the banks.

Since the start of the internet and during my career as a new finance entrepreneur in the 90′s and early 2000′s established financial institutions like the big banks, insurance companies, brokerage firms, and mutual fund companies, have been boicotting any effort of innovation or paradigm change in the financial industry. And for years they have been able to maintain the status quo.

But recently companies like Prosper and Lending Club have been slowly changing this situation.

In the last 5 years both peer-to-peer marketplaces together have been able to fund consumer loans totaling $2.5 billion. They are both accelerating their growth and attracting big equity investors like Sequoia Capital and Google. It seems that this time the big players haven’t been able to stop the trend.

This doesn’t mean they don’t compete against each other, but in a $3 trillion market controlled by the banks they still have a long way to go before they clash.

So for now the real competitors were not at the conference.

In this video Ron gives the Lendit Conference 2013 Afternoon Keynote, where he summarizes the main topics of the presentations, debates, and conversations among the main online lending industry players:

Check out the Prosper Channel on Newfination >>>

About Donald McIntyre

From stock broker to internet entrepreneur, to financial adviser, to Newfination! Donald McIntyre started his career on Wall Street in 1992 working as an Investment Consultant for UBS Securities and then for Smith Barney Inc. In 1999 he started Dineronet.com, a financial portal for Latin America, with the support of investors SoftBank and Carlos Slim. In 2002 Donald started McIntyre S.A. to provide financial advisory services to Carlos Slim’s Inbursa and after 2004 opened the practice to private clients. In January of 2013 he started Newfination to help consumers discover the best new finance services to manage their money.

2 thoughts on “Prosper’s Ron Suber: Our Competitors Are Not Here Today

  1. Yes they are here. In fact they have already had an affect on your business by limiting some small investors ability to invest in your business. I know. I was one that got locked out and am still locked out of investing in loans on Prosper marketing because simply the state I live in. I was on my way to investing in some higher risk loans with prosper which I knew some would not pay on. When the SEC got involved, for the “protection of the small investor”, that was the end of folks like me being able to decide where to put out money fo the best investment. And now going on nearly 5 years I have been locked out of investing in Prosper Marketplace simply because I am the little guy that lives in Indiana.

    • RobertBlankenship the SEC rules that “protect” investors from abuse of the financial industry in effect ban a huge segment of the population from investing in what they please. And in doing so allow bigger investors do whatever they want. It seems a limitation in our freedom rather than a protection. I am sure this has been debated over the decades since the 1933 Act that created the SEC. 
      The problem now is the with the fast proliferation of new finance services like Prosper the whole point of their services is to empower the little guy and these laws practically make that impossible. There is a huge contradiction in the law today: “to protect you a don’t let you do things that are better for you”.
      The other part that has been stopped is the JOBS act, again it’s the SEC not implementing it “for your protection”.
      In addition financial institutions many times lobby for this kind of regulation and control be implemented.