The matching market, AutoLend & ARBU
The Matching market is the “Anonymous Loan Requests Reverse Auction Automated Matching Market” for unsecured personal loans. Just like the Bidding market, the Matching market is a reverse auction for lenders to be matched with borrowers' loan requests. It's a reverse auction because the "winning" lenders have been matched because their bids have lower interest rates than other lenders have offered via AutoLend. This market has been designed to achieve:-
1. For the borrower, complete anonymity (in so far as the loan request is not visible to the public, to other borrowers or to lenders), and speedy fulfillment for the loan request as it's matched at electronic speeds, and
2. For the lender, the opportunity to automate lending to achieve greater speed and volume of lending.
The main difference from the Bidding ("Open Loan Requests Reverse Auction Market") being that this Matching market does not display the loan request, and lenders do not place bids manually, but the loan request is automatically matched, out of sight, via the AutoLend facility and the Matching Engine. In the Matching market, we describe the lenders’ bids as lenders’ matches.
Once a Matching market loan request is fully matched, i.e. the loan request is 100% funded, the borrower has up to 48 hours to decide to accept the loan at the final interest rate, or to decline. The borrower is not obliged to accept the loan.
Borrowers and lenders need to have purchased the Advanced Borrower or the Advanced Lender membership, respectively, to participate in the Matching market.
For the borrower who has an Advanced Borrower membership, a potential loan is initiated in the Matching market via the completion of a Matching market Loan Request. Select "Matching Loan Request" from the Advanced Borrower Menu.
THE MATCHING ENGINE
LendLoanInvest's matching engine has been designed to match lenders lending portfolios requirements against loan requests in both the Bidding and the Matching markets. Administration has various options for the configuration of the matching engine, driven by principles of impartiality and fairness, and its independant selection of loan requests and lenders bids/matches. It will ensure that all lenders and borrowers get a fair chance for their requirements to be fulfilled. We will occasionally change the many matching engine settings to endeavour to improve the speed and fairness of bidding and matching.
For the lender having acquired an Advanced Lender membership, the AutoLend facility is designed to enable lending on a larger scale and with more sophistication than is feasible by manually searching and selecting loan requests, and borrowers, and then manually placing bids on those loan requests. AutoLend optionally enables automatic bidding on Bidding market loan requests as well as being the only mechanism for the placing of matches on loan requests in the Matching market.
AutoLend will automatically place lending bids or matches on loan requests (depending on the market in which the loan request resides) selected according to sets of selection criteria. Up to five different sets of selection criteria settings (in the five available lending portfolios) may be made by the lender. This enables lenders to lend on a portfolio basis, in either or both markets – Bidding or Matching, and with a spread of, for example, borrower credit ratings, borrower ages, interest rates and lending amounts. This enables lending in larger volume and in a more structured manner than is feasible making manual lending bids on specific loan requests.
Detailed instructions for setting up the AutoLend lending portfolios will be found by clicking here.
ARBU is the Automated Response to Bumped-off Underbid facility.
ARBU works in conjunction with AutoLend and is a facility which is provided for Advanced Lenders (those having bought Advanced Lender membership). It is designed to automatically replace a bid or match that has been bumped-off via another lender's underbid. The lender has the facility to specify a number of parameters controlling how the replacement bid/s or match/es will be placed.
For Instructions in setting up ARBU, click here