So What is the Demand Index?
Once the Demand Index algorithm has been completed and fully tested, the demand index will be a daily tracking index showing the overall demand for certain loan grades/types. It will be primarily coded in Unix Shell script.
How does the Demand Index work?
The Demand index will automatically download the “In Funding” and “Funded” loan data once per day and measure how much has been invested into different types of loans. Since Lending Club issues updated tables once per day, that is the minimum update period that can be achieved. The algorithm’s primary purpose is to measure demand via comparing speed of funding and the overall “vacancy” rates for loan types.
How can the Demand Index be used?
The Demand Index can be used by institutions or any other interested parties to track the development of investor preference on the Peer to Peer lending platform of Lending Club.
So how close is it to being done?
The basic code for comparing the In Funding loan amounts on a day by day basis is now complete. Basic functionality and preliminary performance will be posted on P2P Analytics soon.