I guess I never saw the benefit for lenders. Banks use proven algorithms to determine investment risk and set appropriate interest rates/credit limits based on

I guess I never saw the benefit for lenders. Banks use proven algorithms to determine investment risk and set appropriate interest rates/credit limits based on that. Whereas people on Prosper are investing knowing only a credit score and some debt ratios. It's not hard to guess which loan would have the more realistic interest rate. I guess for really high-quality debt, it could be a reasonably safe investment option but I don't see how the risky investments could really pay off.