BillGuard works by letting its users track their spending, monitor their credit, set up fraud alerts and, via crowd-sourced data, flag unauthorized charges. According to their website, they have 1.2 million registered users who flag more than USD 70 million in unauthorized charges since its inception in 2010.
For Prosper, the acquisition provides an opportunity to provide customers with more than just a personal loan.
This acquisition follows the trend of explosive growth of the alternative lending space. Sites and services such as SoFi, CommonBond, Earnest and Avant have been evolving at incredibly quick clips, announcing new funding rounds, expanding into new markets and reaching new valuation milestones.
By acquiring a service that has information on users’ bank accounts, credit cards and spending patterns, Prosper will be able to bolster its underwriting process with even more data. And, theoretically, if Prosper users begin to check the BillGuard app three or four times a week, they’ll be more on top of their finances and a little less likely to default on their loan, adds Forbes.com.
In March 2015, Prosper Marketplace partnered with Western Independent Bankers (WIB), a consortium of small community banks, to boost loan offerings via its online platform.
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