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StartUpOpen 2011 - Projekat20
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StartUpOpen 2011 - Projekat20

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Presentation submitted for StartUpOpen 2011 competition, a part of BlogOpen conference

Presentation submitted for StartUpOpen 2011 competition, a part of BlogOpen conference


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  • 1. The team:
    Ana Indjic
    Margareta Klincic
    Matko Znidaric
  • 2. TheIdea quick and punctual risk assessment for ST loans allow for better default-risk profiling
    short-term loans done by quickandonline risk assessment
    QuickFix would collect all publicly available data on potential clients, run them through the algorithm, thus assess credit worthiness. Funds would be available in 15 minutes or directly transferred to an online retailer. For small amounts of money banks don’t do such a detailed and tailor-made background check. With our logarithm a better risk assessment is done, so that loans could be extended to people with no access to traditional financial institutions 
    business model is based on two characteristics:
    • better risk profiling
    • 3. high margins (due to short-term nature of the loans and low operative costs)
  • 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
  • 4. MacroIndustryStructure
    In the past decade, with the arrival of foreign banks, there has been a rapid expansion in consumer debt. With the crisis the banks have tighten loan issuance but the need for funds still exists. People in need are looking for alternatives, such as outdated cheques and even illegal source of finnacing.
    The situation differs among SEE countries and our business plan is set accordingly. Croatia has the biggest consumer debt market, regulatory framework is set and similar companies have started operating, so is our primary market. Serbia on the other hand has much more potential for the growth in debt market and we would be among first ones to develop these services, thus getting a big lead. Once operative in these two countries it would be easier to expand intoother countries and plan for growth beyond the region.
  • 5. Theroad to SUCCESS
  • 6. Technology
    Sophisticated client screening algorithm
    Intelligent data-mining techniques:
    • collect all the publicly available data about the potential customer, extract valuable information and drive conclusions on the risk of investment
    • 7. the algorithm calculates gathered data to asses how likely it is that a client will default, and practically in the real time the loan is granted or declined
    • 8. examples of the data collected:
    name, date of birth and address – search of formal information about clients
    time of purchase; is the name typed or copied – data provided by cooperation with involved online retailers
    Business relies on short term loans; this means it quickly gets feedback from the customers and can adjust the algorithm instantaneously
  • 9. Marketing strategy & communications
    Communication strategy and tactics
    Position against competitors’ weaknesses to gain market share
    SMS loans - poor credit scoring and bad reputation due to extremely unpopular IRs
    Credit cards in constant decline since 2008 due to market pressure (lower margins, high attrition rates, low usage leading to low outstanding debts and transaction volumes
    Attract young clients with potentially long and lucrative lifecycle instead of risky ones (majority of SMS loan users)
    Consumer insights
    • Don’t want long-term obligations such as cards, out of fear of further debt, but still need occasional “financial injections”
    • 10. Having part of the salary “on the side” limits access to traditional fin. services
    • 11. Younger population prefers online business and banking
    Key success factors / key client benefits
    • Accessibility (online, 24/7)
    • 12. Simplicity (easy to use & apply, fast response & pay-out)
    • 13. Fair price (more expensive than traditional fin. institutions but 3 times cheaper than direct competitors)
    Value proposition – one of a kind, first to fix your short-term fin. issues without extensive credit scoring and paperwork
    Communication channels – strictly online, ease of convergence (comm. channel = purchase channel), constant Internet presence
    • SEO, Google AdWords & local providers (ex.Etarget in Serbia), “pay per click” model as the most cost-effective
    • 14. Blogs, to build credibility and create influence within the web community
    • 15. Social networks (Facebook page, Twitter account), to spread information and generate buzz
    • 16. Display campaign (banners on web sites related to financial services and several mass market oriented), to build brand
  • Crucial to this business model are initial investments in developing the web page and the algorithm, plus substantial working capital in form of cash needed to extend loans. Because these are S-T loans (average 1 month) these funds are recovered quickly and reinvested.
    Depending on expansion plans, financial results vary:
    Only Croatia is developed-
    the business is cash positive in 2 years,
    7-year IRR: 53%; 10-year IRR 57%
    Maximum cash need: € 75.000 (month 7)
    Aggressive expansion, first Serbia, then other regional markets:
    the business needs to reinvest cash into new markets, it is cash positive in 3 years
    7-year IRR: 62%; 10-year IRR 66%
    Maximum cash need: € 75.000 (month 7)
    Financials
  • 17. FACES ofourbusiness
  • 18. No extensive credit scoring
    No excessive paperwork
    In few minutes time
    Get your
    We know you better than your bank does