The platform determines which investors are visible to which brokers using a matching algorithm. The algorithm is designed to maximize the number of loans written through the platform. It includes that:
- Investors and brokers can see all counterparties with whom they have settled a loan in the last 5 years (historical counterparties).
- In addition to historical counterparties investors and brokers receive additional counterparties in each category they subscribe to (new counterparties).
- Investors can set limits in their preferences as to how many new brokers their profile will feed to.
- Brokers receive more new investors in a category the more loans they have settled in that category in the prior 12 months.
- Investors and brokers can pause (reversible) or ban (irreversible) a counterparty.
- Investors are matched by parcel size, geographic preference, security preference and interest rate to brokers who have a track record of settling similar loans in the prior 12 months.
- Low volume investors are matched with low volume brokers and vice versa, thus the more a party uses the platform the more privilege they are accorded.
- Low rating investors are matched with low rating brokers and vice versa, thus the better parties behave the better behaved the parties they are matched with.
- Lower interests rates are given preference to higher interest rates within the same category.
The algorithm does not take the place of personal relationships. While it is useful in assisting investors and brokers to form new relationships the vast majority of loans written on the platform are between investors and brokers who have previously dealt with one another. What the platform does do is enable investors and brokers to manage a larger number of relationships than they would be able to manually. Specifically it tells brokers who, out of their existing relationships, has suitable funds available at a given moment in time.