Become your own hedgefund at Prosper.com

Click here for money. Seriously.

Prosper, America’s first people-to-people lending marketplace has launched to make consumer lending more financially and socially rewarding for everyone!

Think of it as a more intuitive and much cooler combination of Facebook, Ebay and your local bank.com. Instead of listing and bidding on items, people list and bid on loans using the online auction platform.
People who want to lend set the minimum interest rate they are willing to earn and bid in increments of $50 to $25,000 on loan listings they select. People who lend can easily diversify using “standing orders”, which automatically make many small loans to different borrowers.
Borrowers create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Then the auction begins as people who lend bid down the interest rate. Once the auction ends, Prosper takes the bids with the lowest rates and combines them into one simple loan. Prosper handles all on-going loan administration tasks including loan repayment and collections on behalf of the matched borrower and lenders.

Prosper makes several claims insisting they don’t sell, rent, or share members’ personal information with third party marketers. Their security and identity verification systems are state of the art and reportedly consistent with those used by banks, brokerages and institutional creditors.

Hmmmm. When it comes to a loan, would you rather chillout at Citibank or surf your social graph?

Click Send. Get Cash. I like the sound of that much better.

Why you should break up with your bank.

Admit it….The thrill is gone. You’ve grown complacent. The whole thing has turned into a long, drawn out, uninspiring routine that’s getting you nowhere–It’s prime time for an intervention and I’m here to tell you to take a long hard look at your relationship and ask yourself: Is my bank just not that into me?

Be it less than exemplary service, high transaction fees, lines at the teller, or interest rates that just don’t stack up, just cut the cord and switch already.     Proceed directly to the nearest red carpet where the bank next door is ready to treat you (and your money) like royalty.

In the old days, all it took me to switch banks was a cooler welcome gift than a toaster. I admit my standards were low. They had to be. 10 years ago Citibank and Chase were the only gigs in town. Memories of endless teller lines and disgruntled customer service was the norm. Back in the day, going to the bank was just about as inspiring as waiting in line for 2-cent stamps at the post office. Thankfully, the retail baking landscape has changed dramatically in recent years. And now I’ll happily admit, I’m a tough customer.

Swarovski Encrusted Toaster. Now we’re talking.

Why wouldn’t I be a banking snob? A quick stroll through my neighborhood and I’m endlessly taunted by high-yield CDs and even more attractive on-line savings rates offered by more than 20 different retail banking newcomers. Espressos at Wamu, free change counting at Commerce, and concierge services at HSBC are just a few perks banks are using to stand out from the crowd. Toasters are a thing of the past.

Who is the best bank out there today? I’ve got my eye on WaMu. With an attractive suite of products and services such as a 4.75 On-Line Savings rate (at the time of this writing) and Free Checking (for life) topped off by a competitive 5.10 CD rate (for 12 months) and I’m intrigued. Add a clean and easy on-line banking interface, and new branches popping up faster than sub-prime-financed-hi-rise condos and I’m sold!

I confess. I have very little loyalty when it comes to my local bank. I’ve been a customer of 1st National, Emigrant Savings, Fleet, Chase, Citibank, Commerce Bank, HSBC and most recently Countrywide. Yes Countrywide for their 6-month CD at 5.25 APY (FDIC insured of course). Sound fickle? Maybe. But I see it like this: The 20 minute time investment it took to sign up and fund my Countrywide account on line will save me approximately $1100 in yearly interest–Money lost had I stayed asleep at the wheel while my HSBC on-line savings rate dropped a full point since I joined last year. The moral of the story is this: when it comes to banking, it’s OK to be a diva. Your bank should work hard for your money.