On October 23rd, 2014, we updated our
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“… The consumer revolution of the last 30 years is giving way to the Freeform Revolution of the next 30 …”
Consumers are changing
We have been here before TECHNOLOGY REVOLUTION INSTALLATION DEPLOYMENT ERUPTION FRENZY GOLDEN AGE MATURITY Turning Point 2 nd Age of Steam & Railways 1836 Railway mania 1829 Revolutions 1848 Panic 1847 1857 1866 1873 3 rd Age of Steel, Electricity & Heavy Engineering The “Great Depression” 1875 1890 Argentina (Baring ) USA 1893 1903 USA “ Rich man’s panic” 1907 1920 4 th Age of Oil, Automobiles & Mass Production 1930s and WWII 1908 1920 * 1929 USA stock mania 1960 1974 “Oil crisis” Source: Carlota Perez ‘Technological Revolutions and Financial Capital – the Dynamics of Bubbles and Golden Ages’ Canal mania 1793 1 st ‘ Industrial Revolution’ 1771 1810 1819 1825 Panic 1797 5 th Age of Information & Telecommunications ? 20?? 1971 1974 * “Oil crisis” 1987 1989 Collapse 2 nd World 1997 Asia 2000 NASDAQ 2005 eBay
Freeform companies, enabled by technology are transforming industries 2000 2005 2010 P2P Lending P2P Voice P2P Video P2P Info P2P Social P2P Photos Social Networks eBay for things … iTunes for music … Zopa for money TECHNOLOGY REVOLUTION INSTALLATION DEPLOYMENT ERUPTION FRENZY GOLDEN AGE MATURITY Turning Point 5 th Age of Information & Telecommunications ? 20?? 1971 1974 * “Oil crisis” 1987 1989 Collapse 2 nd World 1997 Asia 2000 NASDAQ 2005 eBay ? ? ? ? P2P Trading P2P Payments Personalised Search
The online marketplace where people meet to lend and borrow money With no bank in the middle, both parties get better rates
You’re in control
Low, low rates
Lenders receiving a c.30% better return than base rate; Borrowers borrowing c.30% below the market
Financial return and social reward Working, differentiated, compelling
Launched in the UK March 2005
Borrowers getting the cheapest loans in the country
Lender returns 7-11%
Launched in the US
Launched in Italy
JV in Japan
Control, community, transparency and ethicality key for value and trust
“ No other financial site that I have visited has the guts to run a discussion board and take it on the chin.
Openness is highly valued Users feel valued and committed Users become champions of Zopa That makes me feel like I am part of a community and seems to trigger a sense of belonging. With belonging comes pride and passion. When I tell my friends about Zopa I feel hurt by any negative comments they make as though the site was my own, and for that reason it gets me all wound up when I see even the tiniest glitches on the site” Mosshill, Zopa lender ( Oct 18 2006, 09:17 AM)
An evolving model More involving, more viral
An evolving model A derivative in the US
Social Finance is already global Expect proliferation, niches developing, consolidation
What new opportunities can you see to serve Freeformers?
How will you provide an experience that embraces
How will you take your brand into a consumers life and give up demanding they hold a relationship with you?
Feel free to get in touch: James Alexander [email_address] +44 7957 209670