BDI: The Future of Financial Communications
December 4, 2013

Noah Breslow (CEO)
nbreslow@ondeck.com
OnDeck powers the growth of small businesses
through lending and technology innovation
Key Metrics
Delivered over $750M to...
How is the financial services
industry being disrupted by new
entrants?

How do new financial services
entrants build trus...
Types of Disruption

4
© Copyright 2013 On Deck. All rights reserved.
Three Financial Services Markets Being Disrupted

PAYMENTS

LENDING

BANKING

5
© Copyright 2013 On Deck. All rights reser...
Small Business Lending: Ripe for Disruption
Number of sub-$100k
commercial loans is declining
(millions)1

Low success rat...
Small Business Owners Value Access,
Convenience, Speed, and Service
Branch Closures Signal Online Trend1

But, Bank Websit...
OnDeck uses technology to open up the market for
small business loans
Access
Untapped SMB market
Performance-based capital...
And, to solve small business’ pain points
Small businesses should spend time running their business – not
dealing with fin...
It is more difficult to be a new entrant in
financial services than in other industries

10
© Copyright 2013 On Deck. All ...
How can we create trust among a
customer base that has good
reason to be distrustful?

11
© Copyright 2013 On Deck. All ri...
Building trust as a new entrant in financial services
Set the contrast

Simplify the message
Manage expectations accuratel...
Set the Contrast
Tell your customers that you’re better than the established provider

Established Provider

Who is disrup...
Simplify Your Message
Financial services is outside of small business’ day-to-day expertise –
make it easy to understand w...
Manage Expectations Closely
Business owners are strapped for time – don’t make them search to find
processes and procedure...
Bring the Human Touch to the Online Channel
Small business owners closely associate their business with their
identity – s...
Engage Your Promoters
Small business owners trust other small business owners more
than they trust you
Build ratings and p...
Contacts:
Noah Breslow (CEO)
nbreslow@ondeck.com
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Embracing technology to create trust among small businesses - BDI 12/4/13 The Future of Financial Services Communications: Case Studies and Roundtables

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Presentation: Embracing technology to create trust among small businesses
Presented by: Noah Breslow, Chief Executive Officer, OnDeck
While the alternative lending industry for small businesses is burgeoning, creating trust for a customer base with heightened sensitivities is no easy feat. OnDeck CEO Noah Breslow explores how his 7-year old company used cutting edge technology and a passion for Main Street to change the relationship small businesses have with their lenders.

www.bdionline.com

Published in: Business, Economy & Finance

Embracing technology to create trust among small businesses - BDI 12/4/13 The Future of Financial Services Communications: Case Studies and Roundtables

  1. 1. BDI: The Future of Financial Communications December 4, 2013 Noah Breslow (CEO) nbreslow@ondeck.com
  2. 2. OnDeck powers the growth of small businesses through lending and technology innovation Key Metrics Delivered over $750M to small businesses nationwide since 2007 $100M of equity capital raised $50M in monthly loan originations (Nov. 2013) Headquartered in NYC, with regional offices in Arlington, VA and Denver, CO 100%+ year-over-year revenue growth Over 700 different industries served 225 employees Accolades include:  2-Time Inc. 500|5000 Fastest Growing Companies  Forbes 100 Most Promising Companies 2 © Copyright 2013 On Deck. All rights reserved.
  3. 3. How is the financial services industry being disrupted by new entrants? How do new financial services entrants build trust with their customers? 3 © Copyright 2013 On Deck. All rights reserved.
  4. 4. Types of Disruption 4 © Copyright 2013 On Deck. All rights reserved.
  5. 5. Three Financial Services Markets Being Disrupted PAYMENTS LENDING BANKING 5 © Copyright 2013 On Deck. All rights reserved.
  6. 6. Small Business Lending: Ripe for Disruption Number of sub-$100k commercial loans is declining (millions)1 Low success rate of SMBs securing capital2 13.0 Amount undetermined 14% 10.2 Partial amount approved 36% 5.8 3.9 Denied 37% 3.3 Full amount approved 13% 2007 2008 2009 2010 2011 1. SBA 2012 Small Business Lending Study - # of Loans Originated by CRA Reporting Institutions 2. Federal Reserve Bank of New York Small Business Borrowers Poll Report, May 2012 © Copyright 2013 On Deck. All rights reserved. 6
  7. 7. Small Business Owners Value Access, Convenience, Speed, and Service Branch Closures Signal Online Trend1 But, Bank Websites Still Request In-Person Applications2 1. Bancography Study: The State of Branches In the Age of Automated Banking 2. Wells Fargo Website 7 © Copyright 2013 On Deck. All rights reserved.
  8. 8. OnDeck uses technology to open up the market for small business loans Access Untapped SMB market Performance-based capital using proprietary data and credit models Typical Borrower Profile Speed Customer Service 10-minute application Funding as fast as 24 hours A+ BBB rating Best in Class NPS of 67 OnDeck Term Loans Time in Business: 9.8 years Amounts: $5-$250k Annual Revenues: $964,000 Term: 3 - 18 months Over 700 Different Industries Used for inventory, working capital, equipment, marketing 8 © Copyright 2013 On Deck. All rights reserved.
  9. 9. And, to solve small business’ pain points Small businesses should spend time running their business – not dealing with financing Small Business Problem OnDeck’s Technology Solution No time to search for capital Advanced algorithms deliver decisions in minutes No time to assemble paperwork Simple and paperless online application – takes 10 minutes to complete Large monthly payments impact on cash flow Smaller, automated daily debit payments Ongoing financing needs Easy loan renewal process for existing customers Little / no business credit Repayment reported back to the credit agencies 9 © Copyright 2013 On Deck. All rights reserved.
  10. 10. It is more difficult to be a new entrant in financial services than in other industries 10 © Copyright 2013 On Deck. All rights reserved.
  11. 11. How can we create trust among a customer base that has good reason to be distrustful? 11 © Copyright 2013 On Deck. All rights reserved.
  12. 12. Building trust as a new entrant in financial services Set the contrast Simplify the message Manage expectations accurately Bring a human touch to online experiences Engage your promoters 12 © Copyright 2013 On Deck. All rights reserved.
  13. 13. Set the Contrast Tell your customers that you’re better than the established provider Established Provider Who is disrupting them? Payment Processors Traditional Banks 13 © Copyright 2013 On Deck. All rights reserved.
  14. 14. Simplify Your Message Financial services is outside of small business’ day-to-day expertise – make it easy to understand what you provide 14 © Copyright 2013 On Deck. All rights reserved.
  15. 15. Manage Expectations Closely Business owners are strapped for time – don’t make them search to find processes and procedures How do I become a customer? How much does it cost? How long will this take? A fast and easy application process – takes only minutes to complete. Or, you can call 888-269-4246 if you have questions We have Loan Specialists available 6days a week 15 © Copyright 2013 On Deck. All rights reserved.
  16. 16. Bring the Human Touch to the Online Channel Small business owners closely associate their business with their identity – servicing both the business and the person is crucial Have real people available – OnDeck is open 6 days a week with extended hours Have multiple channels available – – – – Phone Email Click to chat Fax** Bridge online and offline transactions through explicit connection points **Yes, small business owners still use fax machines 16 © Copyright 2013 On Deck. All rights reserved.
  17. 17. Engage Your Promoters Small business owners trust other small business owners more than they trust you Build ratings and profiles in places your audience visits 17 © Copyright 2013 On Deck. All rights reserved.
  18. 18. Contacts: Noah Breslow (CEO) nbreslow@ondeck.com

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