Harmoney prides itself on being open and transparent about our marketplace performance. All information on this page is accurate up to 22nd August, 2016.
You can view your personal statistics in your Lender Dashboard.
Harmoney prides itself on being open and transparent about our marketplace performance. All information on this page is accurate up to 20th Sept, 2016.
You can view your personal statistics in your Lender Dashboard.
Overall performance to date
Volume over time
There has been $303m lent through the Harmoney Marketplace since it launched in September 2014.
Realised Annual Return
Our portfolio is showing a 12.17% RAR (down 0.01% MoM) across retail and institutional lenders, as at 20 Sept 2016. This is the entire portfolio including retail (25% of portfolio) and institutional (75% of portfolio) lending.
This graph now shows the average RAR split out for Retail Lenders (13.38% - Down 0.06% MoM) and Institutional (11.76% - Up 0.32% MoM). As you can see, with Institutional Lenders funding almost three-quarters of the loan book to date, their RAR has a substantial weighting on the overall Portfolio RAR. The lower RAR for Institutional Lenders is primarily due to their fee structure, and not due to credit performance.
Individual RAR vs Days since first Investment
The return of each individual Lender depends on their lending criteria and the performance of the personal loans in their portfolio. This graph shows the RAR of all the individual Lenders on the platform. As expected there are outliers but Lender returns are more concentrated around the platform RAR.
When viewed in conjunction with the next graph (RAR by Unique Loans) you will see that those who vary significantly from the average tend to have invested in fewer loans.
Realised Annual Return by Unique Loans
The return of each individual Lender also depends on their diversification within their personal portfolio. This graph shows that 100% of Lenders who have invested in 100 or more personal loans have all returned a positive RAR. You can also see that once you have invested in 200 or more personal loans, the volatility of the RAR reduces significantly. Click here to learn more about Diversification.
Interest paid to Lenders
Total interest paid out to Lenders to 20 Sept, 2016 is $32m.
This is up $2.5 million since last month.
Loan and Marketplace Performance by Grade
Loan Performance by Grade
This chart exemplifies the effectiveness of the Harmoney credit grade in ranking borrower risk. It is expected that higher grades will go into arrears less than lower grades. That expectation is realised in performance here.
Arrears by Credit Grade
Looking at the loan performance by grade in more detail (demonstrating further that the Harmoney credit grade ranks risk effectively) we see not only that the lower the grade the greater the proportion of arrears but also the greater the severity of the arrears, i.e. Grade F has more loans at >120 days than Grade E and Grade E more than Grade D, and so on. This gives us greater confidence in grading as it operates in our current processes.
Distribution of loans by Grade
This graph has been updated to show only the distribution of grades for the current month. If you would like to see the distribution of previous months you can still view that graph here.
What we see in this graph is that A & B grades make up over 50% of the total volume (dollars) while only 37% of the total loans. By comparison, in the higher risk grades (E & F) we see a higher percentage of loans but a lower percentage of the volume. This is expected as the higher risk grades (E & F) can not borrow as much as the lower risk grades, which means proportionally there will be more loans as compared to the total volume. The converse is true of the lower risk grades, who can borrow more, so we typically see a higher proportion of volume from a lower proportion of individual loans.
Defaults (static loss)
This chart illustrates the actual loss rates experienced. Each year is broken into quarterly groups - or cohorts - with the exception of 2014 where we have combined Q3 and Q4. The combination of 2014 Q3 & Q4 is due to the low level of volume in the first months of operation.
How to read this graph: In the 19 months since the end of 2014 Quarter 4 period (Oct - Dec), there has been a total loss of 5.95% of principal invested; in the 16 months since the end of 2015 Quarter 1 period (Jan - Mar) there has been a total loss of 3.79%. Each line represents a new quarter, with the length showing how long since that quarter ended and the height showing the total loss as a percentage of the loans written in that period.
One of the factors affecting the loss in each cohort is the risk grade mix. In the first month of operation, for example, Harmoney originated no A grade loans. By looking at the two graphs together you can get a better understanding of the population stability in each cohort. You can see each risk grade's estimated default rate here.
As these cohorts mature, we will see a flattening out of the losses as represented in our forecast Hazard Curve. We expect that around 80% of the defaults will occur by around 18 months, which means 36-months and 60-month loans will have a similar default hazard rate.
Repeat Borrowers (Rewrites)
Proportion of repeat Borrowers (Rewrites) by Grade
How to read this graph: Of all the volume (dollars) rewritten to date, 33.68% of it went to Grade A Borrowers, 27.47% went to Grade B Borrowers etc.
Repeat Borrowing is made possible by customers having sufficient limit available to them from which to draw a higher amount. It makes sense that higher grades with higher limits have greater opportunity to repeat borrow. A good Harmoney repayment history is a critical factor in being eligible to repeat borrow. Both of these factors contribute to the distribution of grades that have re-written their loans. This reinforces the value of repeat customers in reducing the overall credit risk in the portfolio.
Proportion of rewritten volume (dollars) by month
This graph illustrates the proportion of volume originated each month that was re-written, vs the proportion of volume that was new lending.
This graph shows a breakdown of the Harmoney loan portfolio by purpose for borrowing.
Debt consolidation is a large proportion of loan outcomes, however in a number of cases these loans will also include a portion of the loan funds going to the borrower for an additional purpose; debt consolidation was a means by which this could be achieved (by lowering the current repayment amount of credit to free up income for that additional purpose).
The spread of other purposes is varied and a positive thing for spreading portfolio risk.
Borrower by Region
This graph shows the proportion of the loan book broken down by borrower residence.
The Harmoney loan book has a strong representation from the Auckland, Wellington and Canterbury regions, which might be reasonably expected. There is no significant risk to portfolio from any acute concentration of risk in any one geographical region.
This graph shows the proportion of the loan book broken down by Borrowers' employment status.
It shows that the vast majority of Borrowers are skilled workers, reinforcing that we have a prime book of Borrowers.
This graph shows the proportion of the loan book broken down by Borrowers' residential status.
Almost 50% of Borrowers are homeowners (by loan count) which translates into over $165m by loan volume. The bulk of homeowners fall in the lower risk grades (A - C) with the higher risk grades often being renters and boarders.
This graph shows the proportion of the loan book broken down by Borrowers' marital status.
75% of the money lent has gone to Borrowers who are either married, or in a de facto relationship. Again it tends to be lower risk grades (A - C) that tend to have a higher proportion of married Borrowers.
This graph shows the proportion of the loan book broken down by Borrowers' age.
The average age of a Borrower is around 43 years old - slightly higher than the average age of a Lender.
Borrowers by Gender
This graph shows the proportion of the loan book broken down by grade and Borrowers' gender.
Overall the portfolio split is 45% women and 55% men - however as the chart shows the divergence from 50:50 becomes more pronounced in the higher risk grades.
Retail VS Institutional Funding
On average, 25% of loans have been funded by Retail (mum and dad) Lenders and 75% are funded by institutions.
However, we are seeing strong growth in retail Lenders with sept 2016 having the highest proportion of retail lending to date.
The mix of retail and institutional Lenders has enabled us to scale, and continue our growth.
Our Lenders come from a broad cross-section of society - this infographic shows their demographic split.
However, in average terms, the typical Harmoney Lenders is a 41 year old man, from Auckland, who has lent money to (invested in) 95 Kiwis.
Our Borrowers come in all shapes and sizes, from all walks of life - this infographic shows their demographic split.
However, in average terms, the typical Harmoney Borrower is a 40-something homeowner, from Auckland, who is borrowing to consolidate debt.
From zero to $300m in the first 2 years months.
In the first 24 months, Harmoney Lenders lent over $300m. But who has been borrowing and why?
Here's a quick infographic looking at what Lenders helped Kiwis achieve.
Why do our Borrowers borrow?
Debt Consolidation is the most common reason our Borrowers borrow, but dig deeper and even amoungst the broader categories there are some great stories.
Here's a quick infographic looking at some of the loan reasons we've had through the Marketplace.
The Harmoney Marketplace
Harmoney is a Peer-to-peer lending marketplace; which means we are where everyday people can lend their money to (and borrow money from) other everyday people.
Here's a quick infographic looking at who uses the Marketplace, and how it works.