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  • Kriger

    1. 1.
    2. 2. <ul><li>We have entered the… </li></ul>
    3. 3. P2P The P stands for person era
    4. 4. The person
    5. 5. SYNERGISTIC Quality of cooperation is high The P2P era is 1+1>2
    6. 6. Market 2.0 <ul><li>Traditional market model: one central organization (financial, governmental, non-profit institution or corporation) serving many individuals </li></ul><ul><ul><li>Large-scale impersonal markets </li></ul></ul><ul><ul><li>Low resolution preference expression </li></ul></ul><ul><li>New innovative market models: flexible dynamic capital allocation systems that provide democratic, more immediate, low-cost, affinity-directed capital </li></ul><ul><ul><li>Benefits to individuals: freedom, convenience, preferences articulation </li></ul></ul><ul><ul><li>Benefits to groups: virtual aggregation of group power to conduct transactions </li></ul></ul>Traditional Market Model Innovative Market Models Many: One Peer finance Many: Many Prediction markets Peer philanthropy One: Many Affinity purchasing
    7. 7. The P2P era is… <ul><li>SOCIAL </li></ul>
    8. 9. <ul><li>Social </li></ul><ul><ul><li>Values self-expression </li></ul></ul><ul><ul><li>Reputation building </li></ul></ul><ul><ul><li>Activity broadcasting </li></ul></ul><ul><ul><li>Interaction and fun: winning, gaming </li></ul></ul><ul><li>Empowerment </li></ul><ul><ul><li>Aggregation, group power </li></ul></ul><ul><ul><li>Democratization </li></ul></ul><ul><ul><li>Increased agency </li></ul></ul><ul><li>Affinity </li></ul><ul><ul><li>Personalization through rich attribute selection </li></ul></ul><ul><li>Impact and efficacy </li></ul><ul><ul><li>Ability for social impact via economic actions </li></ul></ul><ul><ul><li>Greater efficiency of capital allocation and utilization </li></ul></ul><ul><ul><li>Linkage/feedback loop to capital end use </li></ul></ul><ul><li>Broader application of market mechanisms </li></ul>Characteristics of Markets 2.0
    9. 10. What can you do with social media?
    10. 11. <ul><li>Communicate </li></ul><ul><li>Connect </li></ul><ul><li>Collaborate/Co-create </li></ul><ul><li>Collect/categorize </li></ul><ul><li>Collect wisdom </li></ul><ul><li>Customization </li></ul><ul><li>Conversation </li></ul><ul><li>Community/network </li></ul>
    11. 12. social LENDING communities The internet is evolving. The Market is evolving. Social Networks are evolving. Evolution
    12. 13. Fundamentals of community <ul><li>Purpose </li></ul><ul><li>Places </li></ul><ul><li>Profiles </li></ul><ul><li>Roles and responsibility </li></ul><ul><li>Leaders </li></ul><ul><li>Etiquette </li></ul><ul><li>Events </li></ul><ul><li>Rituals </li></ul><ul><li>subgroups </li></ul>
    13. 14. Social Media to the Rescue P2P LENDING is here
    14. 15. <ul><li>Social lending networks connect individual lenders with individual borrowers, creating a peer-to-peer loan service that is streamlined, efficient, legally formatted, profitable, and most importantly helpful . </li></ul>“ In an increasing number of countries across the world, social lending is being hailed asan alternative to ‘traditional’ bank small business and personal loans.”
    15. 16. <ul><li>Social lending is </li></ul>BOOMING -Christopher Langlois Senior Innovation Manager Lloys TSB (London)
    16. 17. “ Some researchers even see Peer-to-Peer lending networks as a serious threat to the banking industry. “ -Christopher Langlois Business Week has estimated that P2P lending is expected to be a $ Billion dollar industry by 2010
    17. 18. <ul><li>A new report released by Javelin Strategy & Research closely examines the recent growth of person-to-person lending (P2P) and reveals its primary users, their motivations and the potential impact on banks. Javelin predicts that the demand for ハ p erson-to-person lending services to pay off credit card debt may grow ハ f rom $38 billion to $159 billion over the next five years. </li></ul><ul><li>The main consumer groups turning to person-to-person lending are young adults and higher income groups. Both consumers age 25-34 and those with incomes over $150K are equally willing to offer or accept person-to-person loans. メ </li></ul><ul><li>“ W e see a surge in popularity among younger consumers because they ユ r e accustomed to interacting in the social media space and also used to transacting online,” said Jean Garascia, an analyst with Javelin Strategy & Research. </li></ul><ul><li>T hose two factors, plus their desire to help others, make person-to-person lending very appealing. </li></ul>
    18. 19. Person to Person Lending facts <ul><li>The demand for using P2P lending to pay off credit card debt is predicted to grow from $38 billion in 2007 to $159 billion by 2012. </li></ul><ul><li>The top three reasons consumers said they would use a P2P loan were to get a better interest rate (36%), avoid using credit cards (33%) and because they do not qualify for a loan from a bank or credit union (27%). </li></ul><ul><li>Consumers ユ motivations for offering P2P loans includes both altruistic and self-interest factors with an equal amount (36%) wishing to help others who may not be eligible for a loan or receive a higher return than traditional banking products. </li></ul><ul><li>With 58% of consumers likely to carry a balance on at least one credit card in the next six months, 44% of those respondents say they ユ r e likely to use P2P lending to pay off their balances. </li></ul><ul><li>Among consumers age 25-34, 9% are likely and 26% are interested in making person-to-person loans; 18% are likely to use P2P lending to pay off a credit card balance, 36% are interested. </li></ul>
    19. 20. Where do I sign up?
    20. 21. Social Lending Players Global <ul><li>Communitylend- Canada </li></ul><ul><li>Smava- Germany </li></ul><ul><li>Boober- Netherlands & Italy </li></ul><ul><li>Igrin- Australia </li></ul><ul><li>Globefunder- Coming soon </li></ul><ul><li>Loanio- </li></ul><ul><li>Peermint- Australia </li></ul><ul><li>Funderground </li></ul><ul><li>ZOPA- UK </li></ul><ul><li>Ppdai -China </li></ul>
    21. 22. Social Lending Players US MARKET <ul><li>ZOPA US </li></ul><ul><li>PROSPER </li></ul><ul><li>Lending Club </li></ul><ul><li>Loanio </li></ul><ul><li>Virgin Money </li></ul>
    22. 23.
    23. 24.
    24. 26. Loanio
    25. 27. Lending Club
    26. 29. PROPSER
    27. 30. Prosper is currently the social lending leader in the US Over 550,000 members $112,000,000 in loans
    28. 31. <ul><li>Getting a loan : </li></ul><ul><li>・ No pre-payment penalties </li></ul><ul><li>・ Fixed interest rate </li></ul><ul><li>・ No hidden fees </li></ul><ul><li>・ U.S. residents only </li></ul><ul><li>Lender returns : </li></ul><ul><li>・ Earn great returns </li></ul><ul><li>・ Easy secure electronic transfers to/from your bank account </li></ul>
    29. 32. How it works… People who need money request it, and other people bid for the privilege of lending it to them. Prosper makes sure everything is safe, fair and easy. Here's how it works:
    30. 33. Prosper’s Referral Program <ul><li>“ Tell people about the great rates they can enjoy at Prosper and earn cash! It's easy and there's no programming involved ム j ust put your screen name on the end of any link to Prosper (or use our handy pre-built buttons below), and you'll start earning money when your friends get started. “ </li></ul><ul><li>Refer a new borrower and earn $35 </li></ul><ul><li>Refer a new lender and you both earn $25 </li></ul>
    31. 34. <ul><li>Prosper uses your credit score to determine your risk and then baed on that risk rate you bid for the loan with your terms </li></ul><ul><li>Prosper describes themselves as: ebay + PayPal + = </li></ul><ul><li>Feels more like eBay than </li></ul><ul><li>Example of use of> Picking one listing at random (right now) they show a man who is looking for a &6,000 @ 27% (18.75 effective) with a Credit grade: D and a Debt to income: 44%. He says he is looking to pay off his high rate credit cards. You can see his full profile without logging in. </li></ul><ul><li>Like Zopa, Prosper spreads the requested amount across many lenders to reduce risk. </li></ul>
    32. 35. <ul><li>“ Get great rates and help fellow Americans” </li></ul><ul><li>A community for lending and borrowing </li></ul><ul><li>Better returns than banks </li></ul>! S tart Borrowing. It's safe, easy and free. R ates as low as 7.70% APR Become a lender. Earn great returns. Earn 9.49 - 12.81% returns 1
    33. 36. Prosper Lend Listing includes <ul><li>Credit Profile (additional credit data is only available to registered users) </li></ul><ul><ul><li>Credit grade </li></ul></ul><ul><ul><li>Home ownership (verified or not) </li></ul></ul><ul><ul><li>Account (verified or not) </li></ul></ul><ul><ul><li>Debt to income ration </li></ul></ul><ul><li>User Description </li></ul><ul><ul><li>Purpose of loan </li></ul></ul><ul><ul><li>My financial situation </li></ul></ul><ul><ul><li>Monthly Net Income </li></ul></ul><ul><ul><li>Monthly Expenses </li></ul></ul><ul><li>Endorsements From Friends </li></ul><ul><li>Questions and answers (only available to registered users) </li></ul><ul><li>Bid History </li></ul><ul><ul><li>Bidder/Relationship </li></ul></ul><ul><ul><li>Rate </li></ul></ul><ul><ul><li>Amount Bid </li></ul></ul><ul><ul><li>Winning </li></ul></ul><ul><ul><li>Status </li></ul></ul><ul><ul><li>Bid Date (PT) </li></ul></ul>
    34. 37. Why does Prosper work? <ul><li>Prosper works because the stories are real. A bank typically only cares about your credit and risk. </li></ul><ul><li>In the example this woman explains why she needs the money, her story almost makes you feel drawn to her in a way that you believe you must help her, otherwise you are not a good person </li></ul><ul><li>Prosper pushes the “feeling” you get when you help someone with their financial needs. The site pushes the aspect of the site in terms of building a bond with the borrowers and lenders. </li></ul>
    35. 38. ZOPA UK <ul><li>The site is very Web 2.0 in design and style </li></ul><ul><li>Includes “social” stats: </li></ul><ul><ul><li>The average age of a Zopa member is 36 </li></ul></ul><ul><ul><li>5900 people registered on Zopa this month </li></ul></ul><ul><ul><li>Most members are from London </li></ul></ul>
    36. 39. <ul><li>Why sign up on Zopa? </li></ul><ul><ul><li>Great returns </li></ul></ul><ul><ul><li>It’s human </li></ul></ul><ul><ul><li>It’s safe </li></ul></ul>
    37. 40. <ul><li>The idea is pretty simple… For Lenders: </li></ul><ul><li>You set up an account and decide how much money you are willing to loan and at what percentage </li></ul><ul><li>You also decide what credit level you are willing to loan the money to </li></ul><ul><li>When a borrower wants to loan over *(pound symbol) 500, the loan split among many lenders to reduce the chance of losing your money </li></ul><ul><li>For borrowers, it is pretty simple as well: </li></ul><ul><li>You setup a account and look at offers from the lenders above </li></ul><ul><li>Once you are satisfied with the offers, you enter a legally binding contract </li></ul>
    38. 41. <ul><li>Zopa pushes the social aspect of borrowing and lending over the actual transaction itself. There is a certain “fun” compondent to lending and borroing on Zopa. The second you open in your browser and see the little people and learn more abou them and their stories you get this feeling. </li></ul>
    39. 42. ZOPA US <ul><li>The big question that people were asking about was about how they would federally insure loans. </li></ul>
    40. 43. Zopa CD
    41. 44. <ul><li>Zopa US is different than Lending Club, Prosper, and Zopa in the U.K. because it works completely on loans that are backed by CDs which are taken through a variety of credit unions in the U.S. </li></ul><ul><li>Loans that are federally insured will be through the Zopa CD up to currently 5.1% depending on which loans you back inside the CD. </li></ul><ul><li>Zopa describes the CD as, “A Zopa CD is guaranteed and insured way to earn a fixed rate of return for a fixed term. Compare it to a “certificate of deposit” at a bank or a “tempshare certificate” at a credit union. But it’s different, too. Because your Zopa CD directly benefits the borrowers you pick by reducing their monthly loan payments.” </li></ul>
    43. 48. Zopa: Over 135,000 members and a default rate of 0.2% on total loan values running into the hundreds of thousands pounds sterling (March 2007)