This week, we made a couple of improvements to the platform which affect MYC4 investors in one way or another. The two main changes are highlighted here:
Prioritisation of Auto Bids
The Auto Bid function on the MYC4 platform is a unique feature that allows investors to make automatic bids on loans that match a set of customised criteria (e.g. by country, provider, industry, size, gender of entrepreneur, payback period). As an investor, you can create, view and edit your Auto Bids under My Account (read more about this in our FAQ).
Automatic bidding is particularly useful to avoid idle funds in investor accounts seeing as money is bid out almost instantaneously when a loan matches the investors’ specified criteria. In a time where the liquidity on the platform is insufficient to fund all loan applications, the Auto Bids are instrumental in ensuring that as many loans as possible are funded.
In order to optimise the allocation of available capital on the platform, we have decided to change the prioritisation of the Auto Bids to target loans at risk of cancelling. This means that whenever two or more loans match the criteria of an Auto Bid, the system will decide which of the loans to bid on based on two parameters – first, the funding status of the loan and then the bidding deadline.
1. THE FUNDING STATUS OF THE LOAN
Essentially, the update to the Auto Bid function introduces the loans’ funding status as a new – and key – parameter:
- loans that are yet to obtain 100 % funding at or below the wanted investor interest rate (red loans) are prioritised first;
- loans where bids with minimum interest rates will be adjusted at the bidding deadline and thereby ensure funding (yellow loans) are prioritised second;
- and loans with 100 % funding at or below the wanted investor interest rate (green loans) are prioritised last.
2. THE BIDDING DEADLINE
Before the update, all Auto Bids were prioritised according to the loans’ bidding deadline so that the loans that were about to close would be first in line to receive bids. The bidding deadline is still an important parameter for the Auto Bids, but it now comes into play only when two or more loans are in the same funding status.
Withdrawals from new investor accounts: 90-day lock
In order to tighten the security on the MYC4 platform, we are introducing a 90-day withdrawal lock on new investor accounts as a fraud prevention mechanism, particularly targeted at online credit card fraud. In practical terms it means that new investors will be unable to withdraw funds from their account in the first 90 days after activation.
Money can however be refunded to a credit card (the same credit card that was used for the upload) earlier than the 90 day limit if the full amount of the initial transaction is still available on the MYC4 account (contact email@example.com to do so).
This change is only applicable for investor accounts created after November 5th 2012.