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BlogOpen 2011 - SUO - Quick Fix
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BlogOpen 2011 - SUO - Quick Fix

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Presentation for StartUpOpen competition held at BlogOpen 2011

Presentation for StartUpOpen competition held at BlogOpen 2011

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BlogOpen 2011 - SUO - Quick Fix BlogOpen 2011 - SUO - Quick Fix Presentation Transcript

  • One stop shop for onlinemicrofinancing: secureonlinepurchasesandquickshort-termloans
    The team:
    Vedran Grcic
    Ana Indjic
    Margareta Klincic
    Matko Znidaric
  • TheIdea
    QuickFix will use publicly available data on our customers in order to predict behavior and approve an on-line purchase or extend a small loan
  • The Team
    Our team combines regional background with a mix of diverse but complementary professional skillsand experience in four key areas: Finance, Marketing, Entrepreneurship and Technology
  • Why we thought of online financing?
    5 / 12
    Sources: Eurostat, Serbian & Croatian statistical institutes, MasterCard Masterindex, www.cnt.rs, www.poslovni.hr, www.vreme.com
  • Questionare (N:208)* - People are worried about online payments and ask for more security while purchasing on the Internet. - People do shop online, but not in local stores yet.
    *Source: representativerandomonlinequestionare, withbias on Internet users profile
  • Questionare: People are inclined to take (online) short-term loans if needed.
  • Operative presentation – working model for micro loans
    8 / 12
  • Operative presentation – working model for micro loans
    9 / 12
  • Operative presentation – working model for micro loans
  • Operative presentation – small button on an online shop
  • Operative presentation – small button on an online shop
  • Thedecision is madeautomaticaly, no usageofsensitive credit card data
  • Thedecision is madeautomaticaly, no usageofsensitive credit card data
  • Marketing support – crucial ingredient for the success of the model
    15 / 12
    Motivate retailers: lower commissions, higher customer security, co-branding
    Drive traffic to grow sales:
    SEO, community, social networks, unique content
  • Development plan - milestones
    Time inmonths
    0
    15
    12
    9
    6
    3
    18
    21...
  • Financials
    Online microfinancing
    the business is cash positive in 6 months
    breaks even in 12 months
    7-year IRR: 62%; 10-year IRR 66%
    maximum cash need: € 65.000 (month 7, for finishing the web page, the algorithms, marketing investment and working capital)
    Online payment system:
    cash from S-T loans business is reinvested, business is profitable in 10 months, cash positive in 15, and breaks even in 24 months . Additional funds needed: €70.000 (month 12)
    Cash-flow
  • Need more security for onlinebuying
    No extensive credit scoring
    No excessivepaperwork
    Infewminutes time
    Getyour
    Weknowyoubetterthanyour bank does
  • Q: Financial institutions are not transparent, always hiding something?
    Foundation
    Transparent warnings about idebtness
    Online presence implies we're transparent and available
    Selectivity in credit approval
    Q: Further indebtness & high interest rates?
    Fairness
    New-generation financial institution – helping people fix short-term problems with short-term solutions (avoid long term debt caused by lower interest rates and longer payment terms provided by traditional financial institutions)
    Interests are higher than those of traditional financial services, but terms are short and risk also high
    Total cost shown: amount taken – amount repaid
    Q: All control & power belong to financial institutions?
    Flexibility
    Giving exact amounts needed, clients choose up to last cent and payment date
    Our service is designed to put you in control of your cash flow, for those occasional times when an unexpected expense catches you by surprise
    Understanding of changing life circumstances and ability to adapt repayment terms if
    Q: Privacy issues?
    Faith
    Client data treated in responsible manner
    Strict code of ethics
    Collaboration with regulators, industry representatives & consumer associations
    Q: Financial institutions are rigid and unhelpful?
    Friendliness
    Communication is a 2-way process – client feedback upon repayment (satisfaction survey)
    Consulting & spending control – “countdown to zero” site section
    Quick response with specific feedback in case of decline
    19 / 12
    Q&F (Questions & Fixes)
  • Questionare, N:167
  • After mining the data, the algorithm drives complex analysis and predicts behavior
    double-layered credit risk assessment:
    top layer
    data that client fills in
    name, address, bank account, mobile phone number etc.
    quick, simple and easy, no additional documents
    identification and trust question
    bottom layer
    background check with data collected online
    Facebook, LinkedIn, credit register, client history etc.
    data-mining techniques, no client involvment
    efficient extraction of data that holds valuable information
    machine learning techniques employed to describe relationship between client profile and default probability
    result: credit risk assessment in real time with high accuracy
  • The TeamFinance | Marketing | Entrepreneurship | Technology
    Our team combines regional background with a mix of diverse but complementary professional skillsand experience in four key areas: Finance, Marketing, Entrepreneurship and Technology