The Singapore FinTech Consortium - Introduction to P2P Lending
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Peer to Peer (P2P) Lending has experienced phenomenal growth in recent years, and is becoming too big to ignore. The Singapore FinTech Consortium presents our slide deck: Introduction to P2P Lending to give you a sneak preview of our research in P2P Lending. If you missed our first slide deck: Introduction to FinTech, please view it at: http://www.slideshare.net/SGFinTech/singapore-fintech-consortium-introduction-to-fintech If you would like to receive a pdf copy of any of our slide decks, please drop us an email at info@singaporefintech.com and we'll be happy to oblige. For more information about us and our service offerings, please visit our company website at www.singaporefintech.com.
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The Singapore FinTech Consortium - Introduction to P2P Lending
- 1. Introduction to P2P Lending ! In Singapore! ! June 2015!
- 2. “We believe that margins in unsecured consumer lending have expanded more since the Financial Crisis than in any other major product segment.”! Morgan Stanley! ! Global Views on P2P Lending! “P2P lenders in the US generated $6.6 billion in loans last year (2014), up 128%.”! Business Insider! “There’s no need to loosen standards. It’s all growing very fast, but it’s a controlled growth.”! Renaud Laplanche, CEO of Lending Club! “The rapid growth of such “peer-to-peer” lenders has been one of FinTech’s most visible successes.” ! The Economist! “For those locked out of loans from the traditional 'Big Four' banks, peer-to-peer lending can offer a much needed alternative, preventing them from resorting to payday loans.”! Davin Mann, Head of Money at uSwitch! 2!
- 3. 3! Defining P2P Lending! ! ! ! ! “Peer to Peer (P2P) Lending describes a method of debt financing, which allows individuals to borrow and lend money, reinventing the role of Financial Institutions as intermediaries.”!
- 4. 4! P2P Lending Landscape! United Kingdom! Asia Pacific! Europe! United States!
- 5. Aspects of P2P Lending! Asset Classes of Loans! Credit Card Payoff ! Mortgages! Auto Loans! Debt Consolidation! Business Use! Major Purchases!Refinancing! Others Asset Classes!Medical Expenses! Invoice Financing! Types of Lenders! Other Institutional Investors!Accredited Investors! Banks!Retail Investors! P2P Lending models are evolving, with diversification of asset classes and liquidity providers.! 5!
- 6. Q2! Q3! Q4! 17! 48! 5! 0! 34! 31! 125! 79! 9! 67! 168! 39! 118! 104! 172! 63! 133! 173! 219! 328! 340! 0! 50! 100! 150! 200! 250! 300! 350! 400! 0! 5! 10! 15! 20! 25! 30! Amount of Investments ($m) No. of Deals Venture Series C+ Series B Series A Seed/Angel Amount Raised Q1! 6! Source: CrunchBase (2015)! Global P2P Lending Investments! 2010! 2011! 2012! 2013! 2014! 2015! Q1! Q2! Q3! Q4! Q2! Q3! Q4! Q2! Q3! Q4! Q2! Q3! Q4!Q1! Q1! Q1! Q1! Sustained increase in capital invested into P2P Lending companies since Q4 2013. !
- 7. KEY HIGHLIGHTS!! 7! Case Study: Singapore! Supporters! SINGAPORE P2P LENDING! • Ranked as the 4th Global Financial Centre and is the Financial Hub of Southeast Asia.! • Gateway to a large potential consumer and Small-Medium Enterprise (SME) market caused by strict access to credit, challenging current credit scoring and rating in Southeast Asia.! • Active interaction and feedback sessions between Government bodies and startups, beginning with Monetary Authority of Singapore (MAS) Crowdfunding Consulation Paper.! • Proposed tightening of regulations on unsecured loans for overleveraged personnel took effect on 1 June 2015.! ! ! ! ! Participants! REGULATIONS! • Proposed to require platforms to obtain Capital Markets Services “CMS” license under SFA before issuing any form of securities.! • Dealing Licenses require $100,000 deposit with MAS.! • Prospectus needs to be given to inform Investors about the company strategy and future plans.! • Option to purchase such securities will only be issued to Accredited Investors and Institutional Investors.! GDP PC $64,584 5.47m 5m 4.45m 8.3m SINGAPORE
- 8. www.facebook.com/FinTechSG! Contact! Singapore Fintech @ Tanjong Pagar 26 Duxton Road Singapore, 089490 Singapore Fintech @ One-‐north Ayer Rajah Blk 79 Singapore, 139995 For further informaKon, visit our website at www.singaporefintech.com For research and inquiries, email us at info@singaporefintech.com 8! www.linkedin.com/company/singapore-fintech-consortium! @SGFinTech!