Up until now I've been imagining a computer learning algorithm to determine whether or not I should invest in any given loan. I'm starting to wonder if that's the best question I can be asking.
I'm a small lender, without a lot of money invested into either Prosper or Lending Club. As my loans are paid off, I reinvest that money in more loans. I wonder if a better question for an AI for a lender like me would be:
Given that I have $200 to invest and these are the open loan requests, which requests will likely yield the highest returns on my investment.
Of course, if I look at the problem this way, there still needs to be a way for the program to determine that my money is better left uninvested to wait for another set of listings.
Incidentally, for those interested in Machine Lending, Smart Peer Lending is doing a series on their own efforts to make a Recommendation Engine. Very interesting stuff.
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