Anyone that runs an affiliate banner for Lending Club will notice something changed. They are re-tooling how they advertise their returns. Instead of giving a platform average they are explicitly stating a range, which is probably a more realistic way to promote the returns of the platform. I find it interesting though that the range of returns only included A – C grade loans, making no mention of D-G. I have a feeling the shift might have come from they fact the base underlying ROI on the platform dropped and 9.6% was no longer accurate. This is not because of defaults, rather their is a shift on the platform, especially during the market craze of 2011 towards A-B loans. Regardless, I think stating a range is a much better approach and gives investors a solid feel for the returns they can expect instead of the golden 9.6%.
What do you think? Do you think this new marketing is better? How do you feel about D-G loans not being addressed?