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Transforming the banking system into an
online marketplace
Invest
PaymentsBorrowers
Investors
U.S. Securities and Exchange Commission (SEC)
crowd sourcing investments is legal
Problem
is it safe?
5 problems borrowers face:
• Applications are denied
• Interest rates can be really high
• Loan paymen...
Benefit for borrowers
is a great option
5 decisions for borrowers:
• Easy online application
• Low fixed rates
• Fixed mon...
Benefit for investors
and efficiency
5 decisions for investors:
• Returns to high
• Simple and straightforward
• Portfolio...
How its work
peer-to-peer lending
Borrowers get funded
Investors build a portfolio
Borrowers apply for loans
Investors ope...
Advantage
Operating expenses as % of
outstanding loan balance
Source McKinsey & Company
Competitions
Sources: Liberum “P2P Lending: Opportunity & how to invest” March 2014
Market
Sources: Liberum “P2P Lending: Opportunity & how to invest” March 2014
Positioning
Sources: Foundation Capital 2014
Business model
Lender Lender Lender
BorrowerWeb bank
Notes, providing for payments equal to
monthly payments received by L...
Traction
Sources: Financial Report LendingClub Q1 2014
Forecast
Source: McKinsey & Company
Source: Wall Street Journal “Billion-Dollar Startup Club” January 2014
Risks
Kondratieff waves
• Borrower defaults
• Bankruptcy
• Interest rate risk
• Poor loan diversification
• Liquidity risk...
Founded: October 1, 2006
Founders: Renaud Laplanche CEO; Carrie
Dolan, CFO; Scott Sanborn, COO; John J.
Mack, Director, Ma...
www.lendingclub.com
By Viktor Osetrov
25/06/2014
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LendingClub Analysis 2014

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LendingClub Analysis 2014

  1. 1. Transforming the banking system into an online marketplace
  2. 2. Invest PaymentsBorrowers Investors U.S. Securities and Exchange Commission (SEC) crowd sourcing investments is legal
  3. 3. Problem is it safe? 5 problems borrowers face: • Applications are denied • Interest rates can be really high • Loan payments can be expensive • Hidden fees and penalties • Calls to much
  4. 4. Benefit for borrowers is a great option 5 decisions for borrowers: • Easy online application • Low fixed rates • Fixed monthly payments and flexible terms • No hidden fees and prepayment penalties • Friendly service
  5. 5. Benefit for investors and efficiency 5 decisions for investors: • Returns to high • Simple and straightforward • Portfolio analysis • Loan analysis • Auto sell feature
  6. 6. How its work peer-to-peer lending Borrowers get funded Investors build a portfolio Borrowers apply for loans Investors open an account Borrowers repay automatically Investors earn & reinvest
  7. 7. Advantage Operating expenses as % of outstanding loan balance Source McKinsey & Company
  8. 8. Competitions Sources: Liberum “P2P Lending: Opportunity & how to invest” March 2014
  9. 9. Market Sources: Liberum “P2P Lending: Opportunity & how to invest” March 2014
  10. 10. Positioning Sources: Foundation Capital 2014
  11. 11. Business model Lender Lender Lender BorrowerWeb bank Notes, providing for payments equal to monthly payments received by Lending Club from borrower, net of 1% service charge Purchase price of Notes, designed to fund a selected member loan Monthly payments of principal and interest on corresponding member loan Funding of selected corresponding member loan Loan proceeds Corresponding member loan promissory note Non-recourse assignment of corresponding member loan promissory note
  12. 12. Traction Sources: Financial Report LendingClub Q1 2014
  13. 13. Forecast Source: McKinsey & Company
  14. 14. Source: Wall Street Journal “Billion-Dollar Startup Club” January 2014
  15. 15. Risks Kondratieff waves • Borrower defaults • Bankruptcy • Interest rate risk • Poor loan diversification • Liquidity risk • Government protection
  16. 16. Founded: October 1, 2006 Founders: Renaud Laplanche CEO; Carrie Dolan, CFO; Scott Sanborn, COO; John J. Mack, Director, Mary Meeker, Soul Htite Headquarters: San Francisco, CA Funding: $392.2M Revenue: $98M (2013) Categories: Finance Technology, Personal Finance, Finance Employes: 379 Competitors: Prosper, Zidisha, Zopa, Funding Circle, Ratesetter, Kabbage Partners: UnionBank, BlackRock, T. Rowe Price, Sands Capital Ventures, Google Capital, DST Global, Foundation Capital Overview Banks, hedge funds push into peer-to-peer lending
  17. 17. www.lendingclub.com By Viktor Osetrov 25/06/2014

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