2. Virgin Brand Awareness in the US
Nationwide Awareness of Virgin Awareness by Major Market
Minneapolis Toronto
83% 82%
Boston
90%
76%
Chicago
g
New York
San Francisco 89%
94% 93%
Los Angeles
93%
Miami
91%
“Have you heard of Virgin?”
Source: Simmons Two Year Study 2007; ABT Research Feb 06
virginmoneyus.com
3. Virgin Brand Target in the US
OPTIMISTIC AMBITIOUS OPEN CONNECTED EXPRESSIVE
(122) It’s important to have lasting (325) I like to stand out in a
(240) I have a keen sense of
(214) I am an optimist (209) I am a workaholic relationships crowd
adventure
(176) I like to enjoy life, (207) I’m work centered (117) I enjoy spending time with (177) I speak my mind even if it
(255) I like to pursue novelty,
( ) p y,
d ’t worry about th f t
don’t b t the future family
my f il t
upsets people
l
challenge and change
(201) I want to get to the
(136) I’m very happy with very top of my career (191) I enjoy entertaining people in (163) I’m frank, straightforward,
(207) I’m brave, courageous and
my life my home candid, outspoken
adventurous
(176) I look at work as a
career, not just a job (160) I like to have a close circle of (180) I consider myself to be
(218) I’m interested in
friends creative
international events
(245) The internet is the prime of
(213) I’m interested in other
my entertainment
cultures
(224) Would pay more for
environmentally f i dl products
i t ll friendly d t
Source: Simmons Two-Year Survey 2007/ Mullen Analysis virginmoneyus.com
4. Innovations
Social Lending
• Pioneer in the U.S.; originally
CircleLending
• First to report P2P loans to credit
bureaus (Experian, Transunion,
PRBC)
• First to develop robust product line
for home loans, business loans,
student loans and personal loans
loans,
• First to distribute social lending
p
products via intermediaries ( (mortgage
g g
brokers, financial planners)
virginmoneyus.com
5. Social Lending Market Opportunity
Peer-to-Peer Loans are Common,
Mainly Among Relatives and Relationships bet ee Parties
e at o s ps between a t es
Friends: Extended Other
Family 7%
9%
•$89 billion in outstanding
Parent/
transactions between “family and
friends” in the U.S. Child
39%
Siblings
•72% of first-time home buyers have
21%
access to funds from relatives
•90% of all small business start-ups
get money from informal sources such as Friends
friends and relatives 24%
Data sources: Federal Reserve Board, Survey of Consumer Finances, 2004; Monitor Company survey
of 400 individuals in 4 states; Proprietary research; Global Entrepreneurship Monitor.
virginmoneyus.com
6. Growth
• Two Customers for the Price of One
• Deep customer relationships for multi-
multi
years (90%+ Willingness to Refer /
Cross-Sell)
• Highly engaged client base
• Above-average credit scores
FICO Score Distribution
25.0% 21.2% 20.2%
20.0% 15.8%
13.7%
15.0%
9.1%
10.0% 6.0% 6.0% 7.0%
5.0% 1.0%
0.0%
300-349 350-399 400-449. 450-499 500-549 550-599 600-649 650-699 700-749 750-799 800-850
Virgin Money National Average
virginmoneyus.com
9. Sample “Coupled” Products with Banks
Student Loans Percent of Site Visitors by Income Bracket
• Parent borrows, student repays in a
100%
flexible manner, family saves money
90% 22%
33%
80%
Mortgages
70%
28%
• Borrower gets affordable second 60%
21%
mortgage and g
g g gets to deduct interest 50%
40%
21% 28%
• Private investor in the first mortgage 30%
gets superior quality client with a 20%
social anchor for repayment 10% 25% 22%
0%
Business Loans / Cards P2P Traditional Mortgage
Providers
• Start-up l
loan f
from F&F, pre-qualify
lf
for Virgin Money loan from bank <$30K $30-60K $60-100K $100K+
virginmoneyus.com
10. Oh Behave!
Loan Servicing Protocols
Flexibility and Structure
• Spread out missed payments
•M
Move payments t end of l
t to d f loan
• Grace periods before first payment
• Portable Piggyback
virginmoneyus.com
11. Predicting the Future
Analyst forecasts are optimistic
US Peer-to-Peer Loan Originations (in Billions)
•Projections range from $1.3B to $5.8B
$7.00
by 2011 – this is growth from $300M in
$
$6.00
2007
$5.00
$4.00
•Gartner predicts that by 2010, social
Gartner
banking platforms will have captured $3.00
10% of the available market for retail $2.00
g
lending $1.00
$1 00
$0.00
2007 2008 2009 2010 2011 2012
Celent Javelin OBR
virginmoneyus.com
