A short overview of Australian Mortgage Marketplace

1. 1
Company Overview
February 2018
www.austmm.com
AMM Overview 2018

2. 2
For the last decade, the Big 4 Banks have enjoyed low capital
requirements (= higher leverage) and a 90% share in a mortgage market
that has grown from $800 billion to $1.7trillion. But the factors
underpinning the dominance of the banks are changing now.
AMM’s Founders are experts in banking, mortgage markets and
information technology. They have identified that now is the time for a
modern, non-deposit taking mortgage lender.
AMM’s vision is to provide a better deal for Australian borrowers
through an efficient, secure and sustainable funding platform for
residential mortgages, built with modern technology. “Aussie super
funding Aussie borrowers directly”.
Each Founder has a track-record of building successful financial
services businesses, with specific mortgage and start-up experience.
Founders’
vision

3. Five Key Features of AMM’s Business Case
Why will this be made to happen?
3
People
-Experience
-Expertise
Timing
-Now
-Competition is
opening
Technology
-Saves costs
-Increases Profit
- Eliminates
intermediaries
Product
-Prime Credit
-Unique features
-Speed to Yes
Distribution
-Private Label
-Broker Friendly
-Invest like a bank

4. 0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
2000 2002 2004 2006 2008 2010 2012 2014 Now 2016 Forecast
2018
Forecast
2020
Higher Capital for Major Banks Limits Growth and Resets the
Competitive Scenario
4
The Major Banks’ new
dilemma.
Is their primary
advantage being
whittled away?
On 19 July 2017 APRA
released an Information
Paper:
“Strengthening
banking system
resilience –
establishing
unquestionably
strong capital ratios”.
APRA’s Secondary Outcome: “ The assumption that residential mortgages are relatively low-
risk credit exposures, while generally appropriate when viewed at the level of individual loans, is
open to challenge when the concentration of mortgage exposures within the overall balance sheet
of the banking system is high and increasing, underwriting standards have become less stringent
over time, and the capital framework does not adequately address this
concentration…………....A central element of the implementation
approach for ‘unquestionably strong’ will therefore be
strengthened capital requirements for residential mortgage
lending.”

5. 5
The Founders have identified
the opportunity
today.
The Australian mortgage
market needs new funders
How does AMM takeadvantage
of the opportunity?
Use technology to do it
better
APRA regulation is ensuring that capital requirements for the
major banks are reversing and are now increasing (“unquestionably strong policy”)
reducing the advantage enjoyed in prime lending over the last 9 years.
The banks’ costs are increasing and so they are now open to more competition in
the $1.7 Trillion mortgage loan market.
The Broker channel is actively seeking new, trust-worthy, reliable funders.
Now is the time for a new 21st century mortgage funder in the Australian market.
AMM is a new generation mortgage lender that uses the latest technology and
platforms to provide a superior service to borrowers, brokers and investors.
AMM is developing and building on blockchain/distributed ledger and smart
contract technology to fund borrowers "direct-to-market” from capital market
investors like Australian super funds.
Investors get better yields and can “invest like a bank” in low risk mortgage loans
using AMM’s reliable data and risk assessment technology.
Direct-to-market investing means lower costs and a better deal for both borrowers
Specialist distribution and underwriting technology allows “fast to yes” origination
through select broker channels.