Social Lending:
Where did it come
from, where is it
going?
James Alexander
Monday 4th February 2008
Consumers are changing



“… The consumer
  revolution of the last 30
  years is giving way to the
  Freeform Revolution o...
We have been here before
                                                                                                 ...
Freeform companies, enabled by
                         technology are transforming industries
                           ...
The online marketplace where people
                   meet to lend and borrow money
                   With no bank in th...
Financial return and social reward
               Working, differentiated, compelling



•   Launched in the UK March 2005...
Control, community, transparency and
               ethicality key for value and trust

Openness
             “No other fi...
An evolving model
More involving, more viral
An evolving model
A derivative in the US
Social Lending is already global
Expect proliferation, niches developing, consolidation
Parting challenges


•   What new opportunities can you
    see to serve Freeformers?

•   How will you provide an experie...
Upcoming SlideShare
Loading in …5
×

James Alexander, CEO, Zopa

2,944 views

Published on

presentation by James Alexander, CEO of Zopa, to the Financial Services Club in February 2008. Blog entry http://thefinanser.co.uk/fsclub/2009/08/the-debate-continues-about-zopa.html explains all.

Published in: Economy & Finance, Business
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,944
On SlideShare
0
From Embeds
0
Number of Embeds
147
Actions
Shares
0
Downloads
0
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

James Alexander, CEO, Zopa

  1. 1. Social Lending: Where did it come from, where is it going? James Alexander Monday 4th February 2008
  2. 2. Consumers are changing “… The consumer revolution of the last 30 years is giving way to the Freeform Revolution of the next 30 …”
  3. 3. We have been here before Turning TECHNOLOGY INSTALLATION Point DEPLOYMENT REVOLUTION ERUPTION FRENZY GOLDEN AGE MATURITY 1st ‘Industrial Revolution’ Canal Panic 1797 1825 1771 mania 1819 1793 1810 Panic 2nd Age of Steam & Railways Railway 1836 mania 1847 1866 1873 1829 1857 Revolutions 1848 Age of Steel, Electricity 1890 3rd & Heavy Engineering The “Great Argentina 1903 USA 1920 1875 Depression” (Baring) 1907 USA “Rich man’s 1893 panic” 4th Age of Oil, Automobiles & Mass Production 1929 USA stock 1930s 1974 1920* and 1960 1908 mania “Oil crisis” WWII 1987 1997 5th Age of Information & Telecommunications Asia 2005 1974* 1971 “Oil crisis” 1989 Collapse 2000 ? eBay 20?? 2nd World NASDAQ Source: Carlota Perez ‘Technological Revolutions and Financial Capital – the Dynamics of Bubbles and Golden Ages’
  4. 4. Freeform companies, enabled by technology are transforming industries Turning TECHNOLOGY INSTALLATION Point DEPLOYMENT REVOLUTION ERUPTION FRENZY GOLDEN AGE MATURITY 1987 1997 5th Age of Information & Telecommunications Asia 2005 1974* 1971 “Oil crisis” 1989 Collapse 2000 ? eBay 20?? 2nd World NASDAQ 2000 2005 2010 P2P Payments P2P Voice P2P Video ? ? P2P Trading P2P Social Social Networks ? ? Personalised P2P Lending Search P2P Info P2P Photos eBay for things … iTunes for music … Zopa for money
  5. 5. The online marketplace where people meet to lend and borrow money With no bank in the middle, both parties get better rates Borrowers Lenders • Low, low rates • Great Returns • No banks • It’s human • It’s fair • It’s safe • You’re in control Lenders receiving a c.30% better return than base rate; Borrowers borrowing c.30% below the market
  6. 6. Financial return and social reward Working, differentiated, compelling • Launched in the UK March 2005 • >180,000 members • Borrowers getting the cheapest loans in the country • Lender returns 7-11% • <0.2% defaults • Launched in the US • Launched in Italy
  7. 7. Control, community, transparency and ethicality key for value and trust Openness “No other financial site that I have visited is highly has the guts to run a discussion board valued and take it on the chin. That makes me feel like I am part of a Users feel community and seems to trigger a sense of valued belonging. With belonging comes pride and and passion. committed When I tell my friends about Zopa I feel hurt Users by any negative comments they make as become though the site was my own, and for that champions reason it gets me all wound up when I see of Zopa even the tiniest glitches on the site” Mosshill, Zopa lender (Oct 18 2006, 09:17 AM)
  8. 8. An evolving model More involving, more viral
  9. 9. An evolving model A derivative in the US
  10. 10. Social Lending is already global Expect proliferation, niches developing, consolidation
  11. 11. Parting challenges • What new opportunities can you see to serve Freeformers? • How will you provide an experience that embraces • Community? • Transparency? • Control? • Ethicality? • How will you take your brand into a consumers life and give up demanding they hold a relationship with you?

×