For the past months we have been working on splitting the business and product into two separate parts. One business is designed to serve the investor exclusively. The other serves only the borrower.
Why are we splitting the system?
The decision to divide the system was triggered by legal changes but is now rooted in one goal: to improve the performance, stability and development speed of the investor product. We want to have a very well tested and high performing investor core product where user experience can be continuously and quickly improved without quality issues. A separated system design will achieve that purpose.
While our current design offers usability and an intuitive design we’ve learned that improvements to the loan product create downstream problems for the investor product. Dividing the system will prevent this issue. As a result, we can focus on upgrades and improvements without the restrictions associated with different system needs.
How will this change benefit the end user?
One of the benefits of this system update is that it will enable us to initiate fractional calculations when determining payments and claims. The increased precision of this method allows for a more equitable distribution of cash among investors. Fractional computation also enhances the liquidity of existing investments and portfolios. Therefore investors can sell whole loan portfolios at once while buyers take a fraction of each loan rather than full single loans. In effect, secondary trades can be priced on a portfolio level, which more accurately reflects the value of high-performing and poor-performing loans. Finally, the change will create more robust reporting and analytical features with concise visualizations for granular-level data.
What’s the current state of the transition?
Initially, we’ve achieved a legal separation of the investor product from the borrower. Next, we’ll complete the disengaging of the two entities from a technological standpoint. In the meantime, we’ll continue to make our regular improvement to the user experience and updates to our core products.