Podcast: Play in new window | Download (Duration: 35:15 — 32.4MB)Subscribe: Apple Podcasts | Android | Email | Google Podcasts | RSSAccording to Steve Andersen and Dave Stein, most salespeople make a vital mistake in the way they approach sales: They think of the sell itself as a short-term gain rather than look to a long-term gain that will sustain relationship and ongoing sales. In this insightful conversation Anthony speaks with Steve and Dave about their new book, “Beyond the Sales Process” and how they are bringing a new approach to the sales process through looking to that long gain.Sales is a long term connection gameClick To TweetWhy a sale has to be seen a long-term gain.It’s very easy and natural to think of a sale as a short-term gain. You get the contract signed and go back to your office, high-fiving everyone in sight, feeling great about yourself and the world. But you have to go out tomorrow and do it again, right? That reality will never change but the mindset behind what that individual sale means should change – you need to see it as the beginning of a longer process, the building of a relationship and the positioning of yourself and your company in a way that makes you an advocate to your customers. In this conversation Anthony gets into the nuts and bolts of that pivotal mindset shift with authors Steve Andersen and Dave Stein.You need to know your customer’s answers to these questions.Dave Stein and Steve Andersen suggest 4 revealing questions that every salesperson should be asking themselves and their customers in order to discover if they have positioned themselves and their company correctly in the minds of their customers. And they insist that the sales professional not simply ask the questions FOR their customers, but that they ask them OF their customers. You need your customer’s honest feedback to these questions to make sure you have an accurate sense of whether your customers value you as you want them to value you. You can hear all 4 questions and how they help you build long term customer relationships on this episode of In The Arena.Successful sales are won long before the salesperson shows up – through engagementClick To TweetDefine your sales success through your customer’s eyes.You don’t really know how successful you are as a sales professional if you don’t know how your existing customers view you and your company. Do they see you as a vendor or a partner? Is their relationship with you one that they can’t live without or one they could do away with when a cheaper or slicker offer comes along? When you’re able to get under your customer’s skin to understand their perception of you, you have something to work on to position yourself where you want to be as their business partner. You’ll either position yourself or be positioned, which do you think is better? Find out how to be in charge of your own position from this episode. What is the value you’re bringing to your customer’s customer?Too many salespeople are short-sighted, thinking only about the things they can do for their customer. While it’s very important to know that, you also want to put yourself in your customer’s shoes so you can understand what they value – and just like you, they value what they are able to do for their customer. One of the ways you can be of greatest value to them is by understanding what they are trying to provide to their customers and positioning yourself to be their best asset in getting that done. It’s part of the long-term gain of sales that you’ll learn to think about and implement from this episode of In The Arena.What is the value you can provide to your customer’s customer?Click To TweetOutline of this great episode Anthony’s introduction to Steve and Dave and their new book “Beyond the Sales Process.” The gap Steve and Dave are trying to close for salespeople. Why sales is a long-term gain. A better way to hit your sales numbers than going customer to customer. The vital questions sales professionals need to ask their customers to build long-term relationships. Defining your sales success through your customer’s eyes. How to collaborate with your customers and prospects for greater success. Creating differentiation of yourself and your company. Why the sales process is GPS rather than a road map.Our Sponsors:Sales Gravy University – tell Jeb that Anthony sent you.Jeffrey Gitomer Sales Seminars – use the code “Anthony” to receive your discount.Resources & Links mentioned in this episode081443715X The theme song “Into the Arena” is written and produced by Chris Sernel. You can find it on SoundcloudConnect with AnthonyWebsite: www.TheSalesBlog.comYoutube: www.Youtube.com/IannarinoFacebook: https://www.facebook.com/iannarinoTwitter: https://twitter.com/iannarinoGoogle Plus: https://plus.google.com/+SAnthonyIannarinoLinkedIn: https://www.linkedin.com/in/iannarino Tweets you can use to share this episodeA better way to hit your sales numbers than going customer to customerClick To TweetDefining your sales success through your customer’s eyes.Click To TweetSubscribe toIn the ArenaApple PodcastsGoogle PodcastsAndroidby EmailRSSOr subscribe with your favorite app by using the address below Get the Free eBook! Learn how to sell without a sales manager. Download my free eBook! You need to make sales. You need help now. We’ve got you covered. This eBook will help you Seize Your Sales Destiny, with or without a manager. Download Now
Most people believe that producing a better result in some area of their life requires that they start doing something, that they add something to what they are already doing. Better results, as far as they are concerned, requires they do something new. Better is found through addition.Taleb introduced me to the idea of Via Negativa, the idea that better is more often found in subtraction. It’s more likely that you will find the better results you want by subtracting, eliminating things instead of adding things.You might improve your health by eliminating certain foods and food-like substances or calories in excess of what you need. You might improve your wealth by eliminating spending on things that bring you no real joy and no real value. You might also improve your work through elimination.You can start by eliminating tasks and projects that aren’t going to move you towards your goals and outcomes. The time you recover is time that can dedicated to the tasks and projects that are most important and useful to you and others. Some time ago, I reviewed my project list and deleted eighty-percent of it, an exercise that not only freed up time but also provided clarity of purpose.Distractions are now so many and varied that it can be difficult to eliminate them and give yourself over to what needs your attention. You can eliminate the Internet and the social apps that draw you away from the very few things that produce the most meaningful results. More difficult, but just as important, you can block your time and provide public notice to remove interruptions.Email isn’t something you can easily drop. It is, however, something you can eliminate for hours at a time by closing your inbox. Unless you are in some role that requires you to monitor email to provide support, you can go two hours without responding to email with confidence your phone will ring if someone has an emergency that requires your attention.For most sales professionals, one of the most important things they need to remove is the tasks (or transactions) that belong to someone else on their team. Subtraction hear multiplies results, even though it requires trust in your team.More isn’t better. Better is better. Multiplication is found in subtraction, not addition. Essential Reading! Get my 2nd book: The Lost Art of Closing “In The Lost Art of Closing, Anthony proves that the final commitment can actually be one of the easiest parts of the sales process—if you’ve set it up properly with other commitments that have to happen long before the close. The key is to lead customers through a series of necessary steps designed to prevent a purchase stall.” Buy Now
An Army man on Friday was booked by the Crime Branch of Jammu and Kashmir Police for allegedly blackmailing a girl after outraging her modesty in Ramban district of the State.Gulab Singh Parihar, posted in Kupwara district, allegedly outraged the modesty of the girl and obtained her photographs.He then prepared an offensive video and started sending threatening text messages to her through different mobile phones, a senior officer of J&K Crime Branch said here on Friday.Parihar allegedly demanded her photographs along with money amounting to ₹5 lakh, failing which he threatened to upload her nude pictures online. He also allegedly demanded from her photographs and videos of other girls from Ramban area for blackmailing them as well, the officer said.After receiving a complaint from the victim, a preliminary inquiry was initiated and it was revealed through mobile phone locations that Parihar, with the connivance of other suspects, had sent vulgar and offensive text messages by impersonating a blackmailer, the officer said.A formal case was registered under relevant sections of the IPC and have investigations started into the case.
For 31-year-old Baby Gupta of Parli village, life with an alcoholic, unemployed husband was one long struggle. She and her two young sons had to depend on her father-in-law, who often belittled them for the hand outs. Finding a job was not an option as her family had not encouraged her education. But when her husband died in 2009, Ms. Gupta decided to find a job — much against her in-laws’ wishes.She approached the Shramik Naari Sangh (Sa-Ni-Sa), a charitable society with a vocational centre at Rajnagar, not far from Parli in western Maharashtra. Ms. Gupta joined the society’s Mahila Gruh Udyog, which manufactures khakhras — a thicker Gujarati cousin of the papad — under the brand name Chaakri, which means service.Speedy road to success“I had never heard of khakhras, much less knew how they looked or tasted,” says Ms. Gupta. However, she quickly learnt how to roll out the crisp snack and soon became one of the unit’s top performers. Today, she makes khakhras from as much as 18 kg to 20 kg of dough every day. “I have learnt to make different varieties,” she says with a smile. “And I teach the juniors too.”Most of Ms. Gupta’s fellow workers at the unit have a similar story of domestic conflict and deprivation. They come from around 20 hamlets in the underdeveloped Sudhagad taluk of the arid Raigad district, west of Pune. With little employment for the men, these women have taken on the task of keeping the home fires burning.The Shrimad Rajchandra Aatma Tatva Research Centre started Sa Ni Sa in 2004, says Simi Thapar, a trustee. It aimed at providing employment opportunities for the women of Parli. But monetising their skills was a challenge.“Unlike women in rural areas in the rest of the country, those in Sudhagad lacked a specialised local skill,” says Shruti Sheth, who heads the Chaakri unit. “We felt that the one thing every Indian woman has mastered is the art of rolling rotis (flat breads). We decided to tap this and started the khakhra project in 2005.” Quality assuranceJyotsnaben Shah, who began training tribal women in the process, and oversees the quality and audit functions, says the unit started in a small kitchen with two or three women making a single variety of khakhra. Today, 60 women, aged between 18 and 45, make around 10 varieties of the savoury.“We stringently follow quality assurance processes,” says Ms. Shah. “Laboratory testing is done to ensure quality and that the product range is compliant with the statutory food grade packaging norms and licensing requirements. The Chaakri unit has an FSSAI licence.”Bosky Bavisi, who heads Sa Ni Sa’s sales operations and is also a trustee, is proud that the khakhras now have a global presence. “We are available in 95 to 100 stores in the U.S. in California, Illinois, Nevada and Texas. Very soon our products will be launched in some premium stores in New York, New Jersey, Connecticut and Pennsylvania. The khakhras are also available in some of the leading stores in Dubai and [will be available] very soon in Singapore.”Perhaps more important than those international markets is how the work has transformed the lives of women in the area.Identity, independenceSanchita Sachin Jhambulkar, 32, a resident of Gothavade village, who has been working with Chaakri for the past eight years, says, “Before I started working here, it used to be difficult to make ends meet. My husband works at construction sites, and his income is erratic. I wanted my son to get an education, unlike his parents.” Ms. Jhambulkar’s 12-year-old son studies in Class VI.Megha Jadhav (23), was able to resume her studies, thanks to Chaakri. She dropped out of school to support her family after her father was struck by paraly- sis. Financial independence after joining the unit meant she could resume her studies via distance education. “Chaakri encouraged me to study again, and funded all my expenses towards admission, books, conveyance and tuitions,” says Ms. Jadhav. “We faced a lot of challenges after my father was paralysed as we didn’t have any savings. My mother and I started working at Chaakri. It has given us a means of earning with dignity.” Ms. Jadhav completed Class XII this year.In 2007, Chaakri diversified into ‘Udaan’, to develop tribal women’s craft skills. “Udaan, which in Hindi means flight, is aimed at giving tribal women the freedom to achieve their dreams,” says Bhavna Parikh, its creative head. Udaan’s journey, though, was challenging. Most of the tribal women were not willing to think about their future. “We began our employment-generation programme with training in making diyas (clay lamps). Their grasping abilities, skill and talent encouraged us to expand the product range and set up the vocational training centre in the unit itself.”Today, women at Udaan make a wide range of handmade products from paper bags to garlands, door strings, shoulder bags and mobile pouches to yoga mats, jewellery and room fresheners.In 2014, Sa Ni Sa bought a bus to provide transport to and from work for the women. They are also served breakfast every day. “Our vision is to provide employment to 800-900 women and open centres in various surrounding hamlets,” says Ms. Sheth.Caring communityChaitanyaben Rambhia, who supervises the training and helps with administrative work and staff welfare, says, “It is fulfilling to see the girls progress, not just socio-economically but also in terms of their confidence and self-reliance.”For the women in the units, life revolves around home and the workplace. “Many of them have never travelled beyond their villages. Picnics are organised for them twice a year to places such as Mumbai, Pune and Alibaug, which the staff look forward to eagerly,” says Ms. Sheth. Sa Ni Sa also conducts free, medical camps for women and their families every quarter. It also organises workshops on issues such as teamwork, motivation, self-expression and awareness of government schemes.Above all, there is the sense of community. “We are given surprise gifts,” says 23-year-old Surekha Ghute, who has been working with Udaan for the past eight years. And birthdays are a big deal. “I had never heard of birthday celebrations before,” says Ms. Rambhia. “It is such an emotional moment when we cut cakes.”
A Kashmir resident was on Monday questioned for suspected terror activities after he was caught travelling without ticket on a train in Mathura.Bilal Ahmed Wani was detained for questioning after he was arrested on Sunday night. The police said Wani was taken to the police station after which the anti-terror squad was called. “We have not been able to confirm any terror links,” said ATS Inspector-General Aseem Arun. Wani was later sent to Anantnag with his family members. “We are investigating the issue along with the J&K police,” Mr. Arun said.
The Gujarat Government on Friday announced a cash reward of ₹1 crore to Sarita Gaekwad, who won a Gold Medal in Asian Games in 4X400 relay in Indonesia. Hailing from a remote village in tribal dominated Dangs district in South Gujarat, Sarita is a daughter of a farm labourer in the state’s most backward district.“It’s a huge achievement for the state and the country. As her home state, Gujarat is proud of her feat. As part of the state’s policy, ₹1 crore reward will be given to her,” Chief Minister Vijay Rupani announced on Friday.On Thursday when news came that she won the Gold Medal, people in her small village burst crackers in celebrations while local legislator of Congress party immediately announced his one month salary as financial reward to her.Subsequently, South Gujarat University where she studied, also announced ₹2 lakh reward while.
Back on the streets: Tens of thousands of farmers in Maharashtra marched to the State capital Mumbai on Thursday to demand loan waivers and the transfer of forestland to villagers who have farmed there for decades. There have been protests by farmers all over the country over falling income and other issues. Many of those marching in Maharashtra had joined a similar protest in March when the State promised to settle the land rights issue. Reuters quoted one protester as saying that “nothing has been done.” The farmers, mostly from the tribal belt of the State, are also demanding farm loan waivers and higher prices for grain, milk and other produce. This week, a report submitted by the Union Agriculture Ministry to the Parliamentary Standing Committee on Finance said millions of farmers in India were unable to buy seeds and fertilizer for their winter crops because of demonetisation. Pictures show farmers marching towards Azad Maidan in Mumbai.
Prime Minister Narendra Modi will sound the poll bugle in Maharastra with the inauguration of big-ticket projects in Yavatmal and Dhule on Saturday. Senior leaders of the Bharatiya Janta Party (BJP) said that with this the party will begin its preparations both for the State and national elections in 2019. Mr. Modi will unveil a model residential school in Nanded, housing units under the Pradhan Mantri Awas Yojana (PMAY), key rail projects and lay the foundation stone of roads planned under the Central Road Fund (CRF). A state-of-the-art Eklavya Model Residential School will be opened at Nanded, with a total capacity of 42 students. The school is being seen as a panacea to the region’s dilapidated ashram shalas, which have not done much to improve quality of education for tribal students. It will also provide an avenue for their overall growth and personal development, officials said. The PM will also hand over keys to selected beneficiaries for the houses constructed under PMAY, and later flag off the Ajni (Nagpur)-Pune train through video link. The train comprises of three-tier air conditioned coaches and will provide overnight service between Nagpur and Pune. The foundation stone of roads under the CRF will be laid through the press of button in the same ceremony.He will also lay the foundation stone of the Dhule-Nardana and third Jalgaon-Manmad Railway lines, the Bhusaval-Bandra Khandesh Express Train and inaugurate the Jalgaon-Udhana Doubling and Electrification Rail Project.The PM is also scheduled to distribute cheques under the Maharashtra State Rural Livelihoods Mission to women self-help groups. Among the irrigation projects, he will launch the Lower Panazara Medium Project under the Pradhan Mantri Krishi Sinchan Yojana, and the Sulwade Jamphal Kanoli Lift Irrigation Schemes at Dhule.
Punjab AAP chief and Sangrur MP Bhagwant Mann has sought financial support from people for campaigning ahead of the general election.Mr. Mann, who is seeking re-election from the constituency, uploaded a video on his Facebook page asking for financial aid to encourage people with “clean image” in politics.“For campaigning (in Lok Sabha polls), money is needed and I am requesting you to give ‘Dasvandh’ (one-tenth of income) so we can encourage people with clean image. “If people with clean image get defeated in politics because of shortage of funds, they will be hurt and in future, such people will not come forward,” the comedian-turned-politician said. Mr. Mann asserted that the funds received would be accounted for.“You may send money in any denomination — 1, 5, 10, 20, 50, 100, 500. The funds, we receive, will be accounted for. When I get the required amount of funds, I will tell you that I now do not require more funds,” he said. He said the AAP was committed to the welfare of people and it was not here to make money. On spending of MPLAD funds, Mr. Mann claimed that he spent the whole funds in his constituency on development work. In the 2014 Lok Sabha polls, Mr. Mann had won the Sangrur seat with a record margin by defeating SAD candidate Sukhdev Singh Dhindsa.
The Hailakandi district administration in Assam relaxed the indefinite curfew for three hours on Sunday, even though internet services remained suspended in the entire Barak valley. District Magistrate Keerthi Jalli ordered relaxation in curfew in the district from 12 noon to 3 p.m., as no untoward incident was reported in the last 24 hours. The curfew, along with prohibitory orders under Section 144 CrPC, will remain in force till 7 a.m. on Monday in the district, Jalli said.“The overall law and order situation will be reviewed and a decision will be taken whether to lift the curfew after 7 a.m. tomorrow (Monday),” another senior official said. During the three-hour relaxationof curfew, most shops remained closed and only private vehicles were seen on the roads. Internet services were suspended in Hailakandi, Karimganj and Cachar districts since Friday night. Following clashes after a person had died on Friday, curfew was imposed in Hailakandi and later extended to the the entire district, as authorities apprehended breach of peace and tranquility.
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Less than three months after hospitality company OYO Hotels & Homes raised $1 billion from SoftBank, Sequoia and other existing investors to enter unicorn club, it is reportedly working on another $1 billion funding round.Singapore-based ride-hailing company Grab — hailed as Southeast Asia’s most valuable startup — is in advanced discussions to invest $100 million (Rs 697.7 crore) in the Ritesh Agarwal company, The Economic Times reported.Read it at Business Today Related Items
Peer-to-peer lending hit the headlines in early December when former Citigroup CEO Vikram Pandit invested in Orchard, a New York City-based startup that aims to create a secondary market for P2P loans. Pandit is part of a group including venture capital firms Canaan Partners and Spark Capital that is investing $2.7 million in Orchard.Peer-to-peer (P2P) lending bypasses banks by connecting borrowers with lenders through online platforms for mostly small loans — like credit card debt — using proprietary technology to assess risk, creditworthiness and interest rates. Enthusiasts say banks have left open a wide and growing market for P2P lending, given that the banks are burdened with stiffer capital adequacy requirements, brick-and-mortar costs, legacy technology and impaired loan portfolios.Indeed, despite a few red flags raised by critics, participants in the industry feel it is ready for broad-based expansion. The two biggest P2P platforms in the U.S. — LendingClub and Prosper, both based in San Francisco — are witnessing triple-digit growth. LendingClub expects to close 2013 with loan origination of $2 billion, while Prosper is looking at $350 million, compared with a combined $871 million last year. Last September, Prosper raised $25 million in a round led by its existing VC partner Sequoia Capital and BlackRock.How P2P Lending WorksBorrowers can list loan requests of between $2,000 and $35,000 on lending platforms. Retail and institutional lenders can select from those requests and invest as little as $25 in a part of each loan, called “fractional loans,” or invest in “whole loans.” P2P lending platforms carry the loans on their books, collect repayments and pursue defaulters. For those services, lending platforms charge investors annual fees of 1% of the loan amounts. These fees are the “skin in the game” for the platforms, which forgo the fees for unrecovered loans. The platforms also charge borrowers loan origination fees of between 1% and 5% of the loan amount, in addition to the interest rate.The minimum FICO credit score requirements are 660 at LendingClub and 640 at Prosper. (FICO credit scores are the most widely used in the U.S., and range between 300 and 850. The higher the score, the lower the consumer’s credit risk.) These lending platforms evaluate each loan application to decide on the interest rate, which ranges between 6% and 35%. On average, only one tenth of the loan applications find willing lenders, either because of poor credit scores or because credit histories cannot be verified. LendingClub’s average loan size is $14,000 with an average interest rate of 15.5%, while the corresponding numbers at Prosper are $11,000 and 16.3%.Because the lending platforms do not have banking licenses, they use WebBank, a bank in Salt Lake City, Utah, to make the loans. The platforms then sell pieces of those loans to investors, who use proprietary risk evaluation criteria to select the loans they want to finance.“This is a niche that probably has some future,” says Wharton finance professor Franklin Allen, adding that the P2P lending industry has overcome the biggest hurdle in capturing the market of credit card debt. “Unless you have some kind of a technology platform or computing system, it is extremely costly to process these loans.” Using advanced techniques for credit scoring and risk evaluation, the major platforms have made P2P lending viable, he adds. P2P lending also has a natural advantage in the current financial system, Allen says. “If you think of the low rates that most depositors get and the high rates on credit cards, it is a big opportunity.”Wharton management professor Keith Weigelt describes P2P lending as an attempt at disintermediation of the banking system, a form of “shadow banking.” He draws a parallel with such practices in China, where many private lenders thrive amid government restrictions on bank credit.Ron Suber, head of global institutional sales at Prosper, calls P2P lending a “full-fledged mega trend and a brand-new legitimate asset class,” noting that Prosper closed November with loan originations of $50 million, 10% higher than in the previous month. (LendingClub closed November with $234 million in loan originations, a 5% growth over the previous month.)P2P lending is seeing growth because it is in “one of the best credit cycles we’ve ever been in,” Suber says. He explains why: “Unemployment is low. People are consolidating debt and improving their personal financial balance sheets. At the same time, lenders are hungry for yields and cash flow every month. Banks are lending less. And P2P platforms have grown and institutionalized the credit process.”Suber also suggests that the younger generation prefers to borrow or lend online at P2P platforms through their smartphones and tablets rather than visit a traditional bank for their needs. “It is easy, and it is quick,” he says, adding that P2P platforms have cut the time taken to process loans from 10 to 11 days or longer to about four days.P2P lending has many factors in its favor, according to Bill Kassul, a partner at Ranger Specialty Income Fund, a $15 million P2P fund that Ranger Capital Group in Dallas, Texas., launched last November. One, the banking industry is not challenging P2P lending platforms even as they disrupt the existing business model. By contrast, technology disrupters have faced stiff opposition from the entrenched leaders elsewhere. Examples include Napster in the music industry, and Travelocity and Expedia in online travel reservations, he notes.Banks cannot enter the P2P space “even if they wanted to because they are brick-and-mortar, have legacy technology and would almost have to start all over with a clean slate to compete with the online platforms,” says Kassul. However, Allen is not so sure: “Banks may be able to set up subsidiaries that mimic these platforms,” he suggests.Second, P2P lending is an attractive alternative for investors who “are starving for yields,” says Kassul. P2P investors can earn net returns between high single digits and low double digits with lower risk than in conventional fixed-income securities, he adds, noting that Ranger wanted to launch a distinctive fixed-income product before it decided that a P2P fund would be a better option. He expects the fund to grow to between $150 million and $200 million by the end of 2014.Peter Renton, publisher of P2P lending website Lend Academy, says in a blog post that as a P2P investor with LendingClub and Prosper, he earned his best-ever returns of 11.62% last quarter. “It is a win-win for all parties,” he writes. “The investor gets a better return on their money than a traditional savings account or CD, and the borrower gets a lower interest rate than they would likely pay for a credit card advance or bank loan.”Cherry Picking Loans“We look for mispriced loans our technology platform identifies,” says Kassul. For example, if a platform assigns a 15% interest rate for a specific loan, Ranger’s technology might determine that the borrower carries lower risk and is eligible for a 10% interest rate.Joshua Rand, one of three partners at Petra Partners LLC in New York City, which also launched a P2P fund in November, is equally bullish. He is aiming for net returns of between 12% and 17% from his approximately $2 million fund. Petra Partners cherry picks the loans, hoping to find borrowers saddled with a relatively higher interest rate than their creditworthiness and risk of default might warrant. Like Ranger, Petra Partners also relies on proprietary tools to assess borrowers’ creditworthiness.Consumer loans form the biggest chunk of P2P loans, and most of those are for credit card debt settlements. Kassul says his fund will have 60%-70% of its investments in U.S. consumer loans, and 15%-20% in U.S. small business loans. International consumer loans and small business loans will make up the remainder of Ranger’s investments. Kassul’s sights are on the European market, especially the U.K., Australia and New Zealand.Kassul says he prefers countries like the U.K. among overseas markets because they have an existing base of P2P lending platforms, supportive government policies and sufficient data and credit histories of borrowers. The major P2P platforms in the U.K. are Zopa, Ratesetter and Funding Circle. Loan originations in November were $32.3 million at Zopa, $24.9 million at Funding Circle and $24.2 million at Ratesetter. P2P lending has begun in India as well, with at least two new platforms — i-lend.in and Faircent.com — launching operations in the last six months.Credit card debt is the biggest market for P2P lenders and makes up about 70% of Prosper’s business. Suber says total U.S. credit card debt is about $850 billion. “We are looking at 10% of that; we have $82 billion to go.” He is seeing a “rapid increase” of 5%-7% each month in demand for the second biggest category: small business loans. Home improvement loans are also becoming popular, as are loans for vacations, tax payments and products like solar panels or motorcycles, he adds.Investors in payday loans may also come into the P2P space and create lending platforms, Kassul suggests. Payday loans are cash advances that borrowers repay on their next payday. They typically carry very high interest rates of nearly 400% (such as a $15 fee for a two-week loan of $100), but also suffer high default rates of up to 20%. The motivation to create platforms is because Wall Street tends to assign them valuations of up to six times earnings, compared with a multiple of two for finance companies like Ranger, he adds. The next big push for P2P valuations will come when LendingClub goes public next year as planned, he says.Suber does not expect P2P lenders to enter big-ticket corporate lending any time soon, but sees possibilities in weddings, student loans and medical expense loans like those for elective surgery. Other asset classes he sees within reach for P2P lending include residential and commercial real estate such as land purchases, car loans, furniture purchases, litigation and finance, among other areas.Prying open another market, LendingClub has begun selling its loans to small community banks that need to diversify their asset portfolios, says a recent report in American Banker. The platform has partnered with seven banks so far, and is working with some of them to make personal loans to their customers, according to the report.Beginning this month, Orchard expects to advise financial institutional investors on developing risk prediction models and regulatory compliance, among other aspects of P2P lending. Later next year, it plans to launch a secondary market for loans from lending platforms like Prosper and LendingClub. With secondary trading platforms for P2P loans, investors can sell the loans they finance instead of holding on to them through their tenures of three years or more.The creation of a secondary market for P2P loan portfolios will catapult the industry to its next growth level, says Kassul. “The Achilles’ heel of the investments in this market is it is not liquid.” He expects the secondary market to expand in the next two years with more entities like Orchard coming up. He also sees the possibility of funds like Ranger creating an exchange where they could trade in loan portfolios.Yet securitization, or trading in bundles of loans, will take time, according to Allen. “These loans are pretty small, and the cost of checking them out will be quite large. That will be difficult to do until these platforms become big.” According to Suber, a few funds have already securitized and sold parcels of P2P loans.Concerns over Loan PerformanceAmid all the enthusiasm, the performance of lending platforms has not exactly been stellar. After being 120 days past due in repayments, a loan moves into default status and is then charged off, states a blog post on Orchard’s website. According to the post, a review of LendingClub loans since January 2012 showed large fluctuations in recoveries. The percentage of accounts paying some amount of recovery ranged from a high of 79.5% of charge-offs in October 2012 to a low 11.6% in June 2013. Total recoveries of charge-offs fell from about 8% in January 2012 to almost zero in June 2013. Prosper, too, went through an uneasy patch with charge-offs and recoveries last year. “Recovery amounts are highly dependent on the collection techniques of the agency along with what agencies are able to offer the borrower as an incentive,” says the Orchard blog post.Weigelt describes the uninspiring performances on charge-offs and recoveries as “growing pains” and does not consider them to be red flags suggesting that the P2P industry might face a crisis, especially with high-risk loans. The industry, he adds, is currently too small to worry about those types of loans. At the same time, however, he labels P2P lending an “unproven model” and expects lending platforms to be aware of that and exercise caution in the early years. “If you take on risky loans and you have a lot of defaults, they will get in the business news, and people reading that will be more hesitant to go to these platforms and lend money,” Weigelt states.The high default rates turn off many prospective investors, acknowledges Kassul, but it would be the wrong way to evaluate investment opportunities, he says. “You have to look at the net yield. You need enough of an interest rate to offset the defaults.” Typically, an investor looking for a 10% net return needs to select loans with an average interest rate of about 18%, with the difference taking care of defaults, fund fees, expenses, etc., he says, adding that funds also need to diversify their investment in loans across the spectrum of high-interest and low-interest loans to hedge their risks.Prosper under its new management has “dramatically improved the pricing risk, and credits and defaults have declined significantly,” says Suber. The performance of its new management team is evident in the 500% growth in originations since [last] February, he adds. Last January, Prosper came under new management led by former Wells Fargo executives Stephan Vermut as CEO and Suber.According to Allen, regulators in the future will have to pay closer attention to “the integrity of lending platforms, check out their credit scoring models and see how reliable they are.” They must also take a careful look at the contracts borrowers sign, he adds.The regulatory environment for P2P lending is evolving, although most of the major players are subject to some form of supervision. For starters, each U.S. state has different rules for borrowers and lenders of P2P loans. Currently, residents of 47 states can apply for Prosper loans, and those in 44 states for LendingClub loans. Only residents of Iowa, Maine and North Dakota cannot apply for P2P loans. Investors in P2P loans have a narrower field: 30 states allow their residents to invest in Prosper loans, while only 26 states are open to LendingClub, ostensibly because of how they perceive the risks.Investors in P2P funds, whether they are individuals or institutions, are not subject to any specific regulation. However, the states that permit their residents to become P2P lenders require them to be “accredited investors.” The SEC defines accredited investors as those with net worth of $1 million, not counting the value of their primary residence. The U.S. Securities and Exchange Commission regulates P2P lending platforms like LendingClub and Prosper that deal with accredited investors. They also come under the purview of the Federal Trade Commission because they entertain non-accredited retail investors. The Federal Deposit Insurance Corp. regulates WebBank, which makes those loans.“The main problem is whether these platforms can overcome fraud issues,” says Allen, adding, however, that P2P platforms should be able to handle such issues once they get big enough to invest in mechanisms that can combat fraudulent activity.Suber says the lending platforms file documents with the SEC every day and work closely with the Consumer Fraud Protection Bureau. “The regulators are incredibly supportive because they view us as helping consumers pay less interest and get more credit, and investors get more returns.” According to Rand, the platforms are transparent enough with their financial statements, and “the possibility of fraud is zero.”Recent developments in China dampen the cheer in P2P lending circles. Dozens of P2P lending platforms have gone bankrupt in China since October, with the amount of money involved reaching one billion yuan ($164.5 million), according to a report in early December by Want China Times, a Taiwan-based news site. The site attributed the estimates to Wangdaizhijia, a P2P lending portal in China. It blamed the closures on risky loans that bypassed the traditional banking system, inadequate regulatory oversight, poor managerial capabilities and tardy responses to security breaches and hacking. Related Items
Dharun Ravi, a former Rutgers University student who used a webcam to spy on his roommate in an intimate encounter with another man, was convicted of 15 counts of invasion of privacy, evidence tampering and hate crimes in March.The roommate, Tyler Clementi, committed suicide by jumping off the George Washington Bridge, propelling the case to national prominence and highlighting the growing problem of cyberbullying and teenage homophobia. Ravi, who was just 18 at the time, was caught up in the resulting national maelstrom and now faces up to 10 years in prison and deportation to India.Ravi had rejected a plea bargain deal that would have spared him jail time, but required 600 hours of community service, probation and a commitment by the prosecution to help him stave off deportation. It is perhaps the more appropriate punishment for what was unquestionably loathsome, reprehensible and mean conduct. Whether it rose to the level of a hate crime remains hotly debated and in subsequent media interviews Ravi has denied that he was homophobic. The prosecution, however, argued at the trial that Ravi’s actions “were planned to expose Tyler Clementi’s sexual orientation, and they were planned to expose Tyler Clementi’s private sexual activity.” A jury that weighed the evidence seems to have concurred.Ravi’s fate now rests in the hands of the judge who will sentence him in May. It is likely that he will face at least some jail time and as a permanent resident, most immigration attorneys believe, he is at serious risk of deportation at the conclusion of his sentence.Cyberbullying and harassment of gay teenagers are serious issues nationwide and equally, perhaps even more so, within the Indian community. Ravi’s case should serve as a wake-up call and prompt serious introspection and dialogue among Indian Americans.New Jersey Indians have long been among the prime targets of hate crimes and can relate well to the harassment and persecution that gay teens are subjected to in schools, playgrounds and colleges every day. From the tweets and email exchanges disclosed at trial it is abundantly clear that even if Ravi wasn’t homophobic, as he insists, he was mocking and relishing in his roommate’s sexual orientation.At the same time, equating hate-motivated murders, assaults, violent crimes and cross burnings that are designed to intimidate with cyberbullying by cruel teenagers, albeit in this occasion with heartrending consequences, is quite a stretch and in the long run likely to undermine both the efficacy of and public support for hate crime laws. The proper resolution in this case is a restrained sentence that adequately punishes and sends a resolute signal on the gravity and cruelty of cyberbullying, but does not overreach. But even that is likely to be harsher than the plea agreement Ravi turned down.The judicial system is frequently irrational, unfair and even cruel. Take the senseless killing of Trayvon Martin, an unarmed 17-year-old black teenager, fatally shot by a seemingly trigger-happy, overzealous neighborhood watch volunteer in Sanford, Fl., who claimed self defense.The local police declined to either arrest or charge George Zimmerman, 28, citing Florida’s “Stand Your Ground” law, which gives the benefit of the doubt to individuals claiming self-defense, even though Zimmerman apparently ignored a 9/11 dispatcher’s instructions to stop following Martin and by all accounts and 9/11 recordings may have shadowed and accosted his victim.Zimmerman has the right to assert a self-defense claim under Florida’s bizarre law, which encourages vigilantism and belligerence, not just in one’s home, but even in public places. But surely the proper venue for evaluating the legitimacy of that defense is a courtroom. It is hard to reconcile the overzealousness displayed in the prosecution of Ravi with the refusal of the Sanford police to even book a man who stalked, confronted, shot and killed an innocent and unarmed teenager running an errand for his father.But then such is the irrationality of American law and its judicial system. Abraham Lincoln once said, “The best way to get a bad law repealed is to enforce it strictly.” New Jersey’s hate crime and Florida’s stand your ground laws may be entering just that territory. Related Items
A seven-member Inter-Ministerial Central Team is in Odisha to assess the damage caused by cyclone Bulbul. The team will visit Bhadrak, Jagatsinghpur, Kendrapara and Balasore districts to evaluate the extent of damage and submit a report to the Centre, officials said. Soon after arriving here on Thursday, the team led by Saheli Ghosh Roy, Joint Secretary (CIC), Ministry of Home Affairs, visited some of the affected areas at Chandbali in Bhadrak district. The officials said that the team will split into two groups on Friday and make field visits to the affected blocks. Group A will conduct a field trip to Chandbali and Basudevpur blocks in Bhadrak district and Bhograi block in Balasore district. Group B will visit Rajnagar block in Kendrapara district and Kujang and Ersama blocks of Jagatsinghpur district. Both the groups will return to the state capital on Friday evening and attend a wrap-up meeting, to be chaired by Chief Secretary A.K. Tripathy. Though the cyclone skipped Odisha and made landfall between West Bengal and Bangladesh coasts on Saturday, heavy downpour and gale-force winds left a trail of destruction, damaging hundreds of houses, uprooting trees, electric poles and affecting telecom towers in the state Preliminary report prepared by the state government said that the cyclone had caused damage to crops in three lakh hectares, which includes more than 33% crop damage in over 2 lakh hectares land. Around 5,500 houses were damaged, 16 lakh electric consumers affected and 653 piped water supply systems suffered break down due disruption in power supply. The State government is likely to submit a preliminary damage assessment report to the team, the officials said. Besides Ghosh Roy, the other team members are Chief Engineer in Ministry of Power Vandana Singhal, consultant in Department of Expenditure Deena Nath, Deputy Secretary in Ministry of Rural Development SS Modi, Superintending Engineer of Central Warehousing Corporation, Odisha, Amarish Pal Singh. Director of DRD Agriculture in Patna Virendra Singh and senior official at the regional office of the Ministry of Road Transport in the state, Sunil Kumar are also in the team.
Healso apologized to Trinidad, who began the tournament as a starter but fell out of the rotation through the course of the season.“Ron’s growth is actually a reflection of the team’s growth, wherever Ron went the team went with him,” said Racela. “There’s a bright future for him, he’s a good role player and many will be interested in him.”“I also apologized to Jojo for what he went through this season. He started for us, fell from the rotation, and started for us again but you didn’t hear anything from him. It’s all team for him and I appreciate it.”ADVERTISEMENT “I would like to apologize to these two because I couldn’t bring them to the Finals in their last year,” said Racela in Filipino Wednesday at Mall of Asia Arena. “These two are very good players, not just good players, but very good people.”FEU, which finished fourth in Season 80 after a 7-7 record in the elimination round, was able to force Ateneo, the top-seeded team with a 13-1 slate, to use its twice-to-beat advantage in the semifinals with an 80-67 beating in the first game.FEATURED STORIESSPORTSWATCH: Drones light up sky in final leg of SEA Games torch runSPORTSSEA Games: Philippines picks up 1st win in men’s water poloSPORTSMalditas save PH from shutoutAteneo, though, battled back in the second game to secure a win in overtime and set up a Finals date with defending champion De La Salle.Racela, who just finished his first head coaching year at FEU, said Dennison was the reflection of the Tamaraws’ growth. Kammuri turning to super typhoon less likely but possible — Pagasa Japan ex-PM Nakasone who boosted ties with US dies at 101 FEU head coach Olsen Racela. Photo by Tristan Tamayo/INQUIRER.netRon Dennison and Jojo Trinidad bid goodbye to Far Eastern University, and if there’s one person who is saddened to see the two leave is head coach Olsen Racela. Racela and the Tamaraws failed to enter the UAAP Season 80 men’s basketball Finals after losing to Ateneo, 88-84, in their rubber match and this will forever be in the former PBA star’s mind as he regrets not seeing his seniors play for a title.ADVERTISEMENT QC cops nab robbery gang leader, cohort FEU alum Santos says Tams should learn from Final 4 loss Kris Aquino ‘pretty chill about becoming irrelevant’ For the complete collegiate sports coverage including scores, schedules and stories, visit Inquirer Varsity. Stronger peso trims PH debt value to P7.9 trillion MOST READ Brace for potentially devastating typhoon approaching PH – NDRRMC Typhoon Kammuri accelerates, gains strength en route to PH Don’t miss out on the latest news and information. View comments Archers, Eagles favorites to win UAAP Season 80 PLAY LIST 02:36Archers, Eagles favorites to win UAAP Season 8002:49La Salle, FEU put ugly offseason brawl behind: ‘Let’s forget what happened’03:43UAAP Season 80 Preview: FEU Tamaraws01:47Panelo casts doubts on Robredo’s drug war ‘discoveries’01:29Police teams find crossbows, bows in HK university01:35Panelo suggests discounted SEA Games tickets for students02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice LATEST STORIES Read Next CPP denies ‘Ka Diego’ arrest caused ‘mass panic’ among S. Tagalog NPA
NEXT BLOCK ASIA 2.0 introduces GURUS AWARDS to recognize and reward industry influencers Defeat for Halep would see her toppled by Wozniacki, who is currently second.Defending men’s champion Roger Federer plays Croat Marin Cilic in the men’s final on Sunday.FEATURED STORIESSPORTSWATCH: Drones light up sky in final leg of SEA Games torch runSPORTSLillard, Anthony lead Blazers over ThunderSPORTSMalditas save PH from shutoutThe Swiss ace, who leads Cilic 8-1 in their previous meetings, is targeting an incredible 20th Grand Slam title and his sixth in Australia.In contrast, Halep and Wozniacki are looking for their first. They are both in their third major decider, but have never won. Kammuri turning to super typhoon less likely but possible — Pagasa Slow and steady hope for near-extinct Bangladesh tortoises The gritty Halep, 26, made her only previous Grand Slam final appearances at Roland Garros in 2014 and 2017.The Romanian has only beaten Wozniacki twice in their six previous matches, the most recent meeting ending in a 6-0, 6-2 battering by the Dane at the 2017 WTA Finals in Singapore.“The way she’s playing, she’s not missing,” said Halep of Wozniacki. “She’s running very well. So she’s a strong opponent. I played her many times. I won against her few times.“It’s going to be a different match. Emotions are there. Pressures are there for both of us. We’ll see what is going to happen.” John Lloyd Cruz a dashing guest at Vhong Navarro’s wedding MOST READ Read Next Sports venues to be ready in time for SEA Games PLAY LIST 00:59Sports venues to be ready in time for SEA Games01:27Filipino athletes get grand send-off ahead of SEA Games00:50Trending Articles01:29Police teams find crossbows, bows in HK university01:35Panelo suggests discounted SEA Games tickets for students02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City Romania’s Simona Halep celebrates after defeating Germany’s Angelique Kerber in their semifinal at the Australian Open tennis championships in Melbourne, Australia, Thursday, Jan. 25, 2018. (AP Photo/Dita Alangkara)MELBOURNE, Australia — Simona Halep and Caroline Wozniacki face off for the Australian Open title on Saturday in a culmination of two weeks of intense tennis that will see a new name engraved on the trophy.The Romanian is the top seed and the Dane number two, with the evening decider on Rod Laver Arena having an extra enticement for both players with the number one world ranking at stake.ADVERTISEMENT LATEST STORIES Wozniacki, 27, has long carried the unwanted moniker of best player never to claim a major, having reached the US Open final in 2009 and 2014, and first becoming number one in 2010.She is in her 43rd Grand Slam appearance and desperate to get off the mark.“I always believed in myself,” she said. “I knew that if I can stay healthy and I work hard, my game is good enough for it.”Her hard work was rewarded with a renaissance in 2017, reaching eight finals — winning in Tokyo and at the season-ending WTA Finals, where she banished another hoodoo by registering a first career win over Venus Williams.She continued her sparkling form at the start of this year and has 10 wins and only one defeat, to Julia Goerges in the warm-up Auckland final.ADVERTISEMENT Painters turn back Road Warriors Typhoon Kammuri accelerates, gains strength en route to PH Brace for potentially devastating typhoon approaching PH – NDRRMC Don’t miss out on the latest news and information. Globe Business launches leading cloud-enabled and hardware-agnostic conferencing platform in PH 2 ‘newbie’ drug pushers fall in Lucena sting View comments
Don’t miss out on the latest news and information. WATCH: Firefighters rescue baby seal found in parking garage World’s 50 Best Restaurants launches new drinking and dining guide LATEST STORIES Victolero keeps faith in Lee despite missing potential game winner It was the fourth most number of rebounds by a player in a PBA game and the second highest rebound output in the playoffs next to Michael Hackett’s 45 back in 1985.“Next time, we should limit his rebounding as well as his scoring,” said Austria.FEATURED STORIESSPORTSSEA Games: Biñan football stadium stands out in preparedness, completionSPORTSPrivate companies step in to help SEA Games hostingSPORTSMalditas save PH from shutoutRhodes found himself in foul trouble again, but still came away with a decent showing with 21 points, 10 rebounds, two steals, and a block.“After the first half, we know that Ratliffe already has 22 rebounds. He got 30-plus rebounds, but as long as their locals aren’t scoring, it’s okay for us. We won by one point, but next time, we have to limit their locals again,” he said. PBA IMAGESSan Miguel emerged victorious in Game 2, but Beermen coach Leo Austria is expecting more from his import Charles Rhodes after Star’s reinforcement Ricardo Ratliffe nearly led his team to a win with a dominating performance Monday night.Ratliffe outplayed Rhodes with a 25-point, 35-rebound performance in the Beermen’s 77-76 escape to knot the semifinals series at 1-1.ADVERTISEMENT Ethel Booba on hotel’s clarification that ‘kikiam’ is ‘chicken sausage’: ‘Kung di pa pansinin, baka isipin nila ok lang’ Robredo: True leaders perform well despite having ‘uninspiring’ boss PLAY LIST 02:49Robredo: True leaders perform well despite having ‘uninspiring’ boss02:42PH underwater hockey team aims to make waves in SEA Games01:44Philippines marks anniversary of massacre with calls for justice01:19Fire erupts in Barangay Tatalon in Quezon City01:07Trump talks impeachment while meeting NCAA athletes02:49World-class track facilities installed at NCC for SEA Games MOST READ View comments Heart Evangelista admits she’s pregnant… with chicken Heart Evangelista admits she’s pregnant… with chicken Lacson: SEA Games fund put in foundation like ‘Napoles case’ 1 dead in Cavite blast, fire What ‘missteps’? Austria also issued a challenge to Rhodes.“For me, [Ratliffe] is the best import right now. Maybe, Charles can argue with that and it’s up to him,” he said. “Because of eagerness to block and to attack, sometimes he gets called for an offensive foul. He knows that Ratliffe is really the kind of import who you can’t take lightly, so he should step up because this next game is very important for us.”Game 3 is on Wednesday at Smart Araneta Coliseum.ADVERTISEMENT Sports Related Videospowered by AdSparcRead Next