Upload
realspeaker-20
View
2.860
Download
0
Embed Size (px)
Citation preview
Transforming the banking system into an online marketplace
Invest
PaymentsBorrowers
Investors
U.S. Securities and Exchange Commission (SEC)
crowd sourcing investments is legal
Problem
is it safe?
5 problems borrowers face:• Applications are denied
• Interest rates can be really high
• Loan payments can be expensive
• Hidden fees and penalties
• Calls to much
Benefit for borrowers
is a great option
5 decisions for borrowers:• Easy online application
• Low fixed rates
• Fixed monthly payments and flexible terms
• No hidden fees and prepayment penalties
• Friendly service
Benefit for investors
and efficiency
5 decisions for investors:• Returns to high
• Simple and straightforward
• Portfolio analysis
• Loan analysis
• Auto sell feature
How its work
peer-to-peer lending
Borrowers get fundedInvestors build a portfolio
Borrowers apply for loansInvestors open an account
Borrowers repay automatically
Investors earn & reinvest
Advantage
Operating expenses as % of outstanding loan
balance
Source McKinsey & Company
Competitions
Sources: Liberum “P2P Lending: Opportunity & how to invest” March 2014
Market
Sources: Liberum “P2P Lending: Opportunity & how to invest” March 2014
Positioning
Sources: Foundation Capital 2014
Business model Lender Lender Lender
BorrowerWeb bank
Notes, providing for payments equal to monthly payments received by Lending Club
from borrower, net of 1% service charge
Purchase price of Notes, designed to fund a selected member loan
Monthly payments of principal and interest on
corresponding member loan
Funding of selected corresponding member loan
Loan proceeds
Corresponding member loan promissory note
Non-recourse assignment of corresponding member loan
promissory note
Traction
Sources: Financial Report LendingClub Q1 2014
Forecast
Source: McKinsey & Company
Source: Wall Street Journal “Billion-Dollar Startup Club” January 2014
Risks
Kondratieff waves
• Borrower defaults
• Bankruptcy
• Interest rate risk
• Poor loan diversification
• Liquidity risk
• Government protection
Founded: October 1, 2006
Founders: Renaud Laplanche CEO; Carrie Dolan, CFO; Scott Sanborn, COO; John J. Mack, Director, Mary Meeker, Soul Htite
Headquarters: San Francisco, CA
Funding: $392.2M
Revenue: $98M (2013)
Categories: Finance Technology, Personal Finance, Finance
Employes: 379
Competitors: Prosper, Zidisha, Zopa, Funding Circle, Ratesetter, Kabbage
Partners: UnionBank, BlackRock, T. Rowe Price, Sands Capital Ventures, Google Capital, DST Global, Foundation Capital
Overview
Banks, hedge funds push into peer-to-peer lending
www.lendingclub.com
By Viktor Osetrov25/06/2014