BlogOpen 2011 - SUO - Quick Fix

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Presentation for StartUpOpen competition held at BlogOpen 2011

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BlogOpen 2011 - SUO - Quick Fix

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

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