Nigel Morris: Leading Innovation at Big Bank Scale
Keynote address by Nigel Morris, of QED Investors, at LendIt Europe 2014. The title of this presentation is Leading Innovation at Big Bank Scale.
Solving Financial Constraints with Innovative Funding SolutionGilbert Tam 譚耀宗
After the credit crunch in 2008, SMEs though they are amounted to the 80-90% of business activites but their access to funding has been greatly impacted by the traditional lenders, banks, that after the 2008 credit cruch are reluctant to maintain such business if no "bricks and mortar" are provided by sellers.
The banking sector is experiencing a major shift globally, as Challenger Banks are becoming increasingly formidable competitors to traditional banks and have begun to capture significant market share. Furthermore, the lines between banks and other consumer financial services providers are blurring, with several alternative lenders and robo-advisors beginning to offer banking products to their customers. E-commerce / internet giants are also jumping into the fray with Google and Amazon, among others, beginning to offer banking products. In response to the emergence of Challenger Banks, a number of incumbent banks have launched their own FinTech brands, and traditional financial institutions will likely turn to FinTech solution providers in order to defend their turfs. The report features an overview of trends in the Challenger Banking space as well as the broader banking ecosystem, a detailed landscape of Challenger Banks globally, a proprietary list of financing and M&A transactions, as well as exclusive executive interviews.
P2P lending market has a lot of potential for both its lenders and borrowers to prosper in Marketplace run online lending services that can quickly and effectively grow their money.
Detailed overview of OnDeck's IPO including its funding history, business operations, financial performance, public company comparables and relevant industry transactions
Robo-advisor portfolios may be well diversified, they also contain construction gaps that should not be present in well-constructed portfolios.
Post discussing this in broader context schedule for 3 May 2017 http://wp.me/p2Oizj-HV
Mercer Capital's Value Focus: FinTech Industry | Second Half 2016Mercer Capital
Mercer Capital’s newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
Solving Financial Constraints with Innovative Funding SolutionGilbert Tam 譚耀宗
After the credit crunch in 2008, SMEs though they are amounted to the 80-90% of business activites but their access to funding has been greatly impacted by the traditional lenders, banks, that after the 2008 credit cruch are reluctant to maintain such business if no "bricks and mortar" are provided by sellers.
The banking sector is experiencing a major shift globally, as Challenger Banks are becoming increasingly formidable competitors to traditional banks and have begun to capture significant market share. Furthermore, the lines between banks and other consumer financial services providers are blurring, with several alternative lenders and robo-advisors beginning to offer banking products to their customers. E-commerce / internet giants are also jumping into the fray with Google and Amazon, among others, beginning to offer banking products. In response to the emergence of Challenger Banks, a number of incumbent banks have launched their own FinTech brands, and traditional financial institutions will likely turn to FinTech solution providers in order to defend their turfs. The report features an overview of trends in the Challenger Banking space as well as the broader banking ecosystem, a detailed landscape of Challenger Banks globally, a proprietary list of financing and M&A transactions, as well as exclusive executive interviews.
P2P lending market has a lot of potential for both its lenders and borrowers to prosper in Marketplace run online lending services that can quickly and effectively grow their money.
Detailed overview of OnDeck's IPO including its funding history, business operations, financial performance, public company comparables and relevant industry transactions
Robo-advisor portfolios may be well diversified, they also contain construction gaps that should not be present in well-constructed portfolios.
Post discussing this in broader context schedule for 3 May 2017 http://wp.me/p2Oizj-HV
Mercer Capital's Value Focus: FinTech Industry | Second Half 2016Mercer Capital
Mercer Capital’s newsletter, FinTech Watch, provides an overview of the FinTech industry, including public market performance, valuation multiples for public FinTech companies, and articles of interest from around the web. This newsletter focuses on FinTech segments, including payment processors, technology, and solutions companies, examining general economic and industry trends as well as a summary of M&A and venture capital activity.
Peer-to-Peer Lending: Examining the Industry and the Borrower ExperienceCorporate Insight
Online peer-to-peer (P2P) lending websites, often referred to as “Shadow Lenders”, have gained significant traction since the credit crunch resulting from the 2008 financial crisis. The purpose of these rapidly-growing websites is to facilitate loans of under $35,000 between borrowers and investors. The result is a transparent loan platform where individual investors can determine a borrower’s credit worthiness and partially or fully fund a loan at an attractive interest rate.
This slide deck offers background on the P2P lending industry and takes a closer look at the borrower experience by profiling two leading firms in the space – Prosper and Lending Club. Five key takeaways and tips for P2P lenders are also highlighted.
Igor Zax interviewed on Credit Insurance for Secured LenderIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd., was interviewed about credit insurance, among other industry leaders in Secured lender, a publication of Commercial Finance Association.
The article,
Trade Credit Insurance Proves to be a Useful Financial Tool
was written by, Eileen Wubbe, Senior Editor and also includes interviews with senior officers of credit insurers (Atradius, COFACE, EULERHermes), insurance brokers (Marsh, Arthur J. Gallagher) and Financiers (GE, EX-Works Capital).
Igor Zax also moderated credit insurance panel at Factoring and Trade Finance World, a major conference by Commercial Finance Association, that will be held in Miami 2-4 March 2015.
The perspective of Fintech executives.
In June of 2015, The Economist Intelligence Unit (sponsored by HP) conducted in-depth surveys of over 100 global bankers and Fintech executives on the future of retail banking. This is what we found.
Peer-to-Peer lending: What is Lending Club?David Peat
A presentation given to the Trade and Investment Society on Lending Club, a peer-to-peer lending start-up and currently the largest P2P lending company on the planet.
The convergence of non-traditional rivals and heightened global regulation are creating new digital opportunities for banks. To seize the high ground, banks need to think like disruptors and apply modern digital tools, techniques and partnership strategies.
Negotiation Strategies: Using Game Theory and Decision Tree Analysis to Deter...brucelb
A detailed case study of how to use Negotiation Strategies, an application of Game Theory and Decision Tree Analysis to develop an optimum strategy for negotiating a settlement in litigation. We demonstrate a process that can: identify and assess negotiation risks; know whether th current Negotiation Strategy will fail in time to change it;
and execute the most effective strategy to get the best possible outcome.
This presentation illustrates why payments are more important than ever and why having a payments strategy is essential. It then outlines the steps to developing a payments strategy
Beyond Banking: New Business Models for the Digital EraJessica Wilkinson
The banking and financial services industry is undergoing a period of unprecedented disruption, which is re-shaping the competitive landscape.
Criterium Group believes we’re experiencing a fundamental change in how people manage, save and spend their money –which means banks and credit unions will need to re-imagine how they deliver value to customers and members.
We’re experiencing a disintegration of the financial industry. But disruption is exciting, not scary. As our relationship with money evolves, there are endless opportunities to delight customers and deliver value. However, competing in a digital age takes a completely different approach.
Criterium Group has considered the changing landscape from a competitive, financial, technological and operational perspective to re-design the traditional banking business model to win in a digital world.
Identity Theft Coverage - How are Insurers Protecting Their CustomersCorporate Insight
Having personal and credit card data stolen is traumatizing and presents a host of hassles to consumers. As more transactions take place online, opportunities for fraud and identity theft increase.
This slide deck highlights the products and educational content related to identity theft available on the public sites of five leading life insurers. It is noteworthy that MetLife and Nationwide are the only firms we track that offer separate, specialty products focused on protecting clients from identity theft.
In order to develop a fact-based perspective, The Economist Intelligence Unit (EIU), sponsored by Hewlett Packard Enterprise, has conducted parallel surveys of more than 100 senior bankers and 100 Fintech executives. The objective is to determine their respective views on the impact of Fintech, the strengths and weaknesses of the participants and the likely landscape for the retail banking industry over the next five years.
Corporate Treasurers Focus on Cyber SecurityJoan Weber
Treasury departments at large U.S. companies rank IT security as their top priority for 2015 - ahead of such critical issues as cost management and regulatory/compliance challenges.
These finding come from the results Greenwich Associates 2014 U.S. Large Corporate Finance Study, for which the firm interviewed CFOs or treasury department representatives at more than 500 large U.S. companies.
The study results suggest that U.S. companies are taking action to address security concerns and other IT issues with 63% of the participants saying their treasury departments will increase technology spending in the year ahead.
Peer-to-Peer Lending: Examining the Industry and the Borrower ExperienceCorporate Insight
Online peer-to-peer (P2P) lending websites, often referred to as “Shadow Lenders”, have gained significant traction since the credit crunch resulting from the 2008 financial crisis. The purpose of these rapidly-growing websites is to facilitate loans of under $35,000 between borrowers and investors. The result is a transparent loan platform where individual investors can determine a borrower’s credit worthiness and partially or fully fund a loan at an attractive interest rate.
This slide deck offers background on the P2P lending industry and takes a closer look at the borrower experience by profiling two leading firms in the space – Prosper and Lending Club. Five key takeaways and tips for P2P lenders are also highlighted.
Igor Zax interviewed on Credit Insurance for Secured LenderIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd., was interviewed about credit insurance, among other industry leaders in Secured lender, a publication of Commercial Finance Association.
The article,
Trade Credit Insurance Proves to be a Useful Financial Tool
was written by, Eileen Wubbe, Senior Editor and also includes interviews with senior officers of credit insurers (Atradius, COFACE, EULERHermes), insurance brokers (Marsh, Arthur J. Gallagher) and Financiers (GE, EX-Works Capital).
Igor Zax also moderated credit insurance panel at Factoring and Trade Finance World, a major conference by Commercial Finance Association, that will be held in Miami 2-4 March 2015.
The perspective of Fintech executives.
In June of 2015, The Economist Intelligence Unit (sponsored by HP) conducted in-depth surveys of over 100 global bankers and Fintech executives on the future of retail banking. This is what we found.
Peer-to-Peer lending: What is Lending Club?David Peat
A presentation given to the Trade and Investment Society on Lending Club, a peer-to-peer lending start-up and currently the largest P2P lending company on the planet.
The convergence of non-traditional rivals and heightened global regulation are creating new digital opportunities for banks. To seize the high ground, banks need to think like disruptors and apply modern digital tools, techniques and partnership strategies.
Negotiation Strategies: Using Game Theory and Decision Tree Analysis to Deter...brucelb
A detailed case study of how to use Negotiation Strategies, an application of Game Theory and Decision Tree Analysis to develop an optimum strategy for negotiating a settlement in litigation. We demonstrate a process that can: identify and assess negotiation risks; know whether th current Negotiation Strategy will fail in time to change it;
and execute the most effective strategy to get the best possible outcome.
This presentation illustrates why payments are more important than ever and why having a payments strategy is essential. It then outlines the steps to developing a payments strategy
Beyond Banking: New Business Models for the Digital EraJessica Wilkinson
The banking and financial services industry is undergoing a period of unprecedented disruption, which is re-shaping the competitive landscape.
Criterium Group believes we’re experiencing a fundamental change in how people manage, save and spend their money –which means banks and credit unions will need to re-imagine how they deliver value to customers and members.
We’re experiencing a disintegration of the financial industry. But disruption is exciting, not scary. As our relationship with money evolves, there are endless opportunities to delight customers and deliver value. However, competing in a digital age takes a completely different approach.
Criterium Group has considered the changing landscape from a competitive, financial, technological and operational perspective to re-design the traditional banking business model to win in a digital world.
Identity Theft Coverage - How are Insurers Protecting Their CustomersCorporate Insight
Having personal and credit card data stolen is traumatizing and presents a host of hassles to consumers. As more transactions take place online, opportunities for fraud and identity theft increase.
This slide deck highlights the products and educational content related to identity theft available on the public sites of five leading life insurers. It is noteworthy that MetLife and Nationwide are the only firms we track that offer separate, specialty products focused on protecting clients from identity theft.
In order to develop a fact-based perspective, The Economist Intelligence Unit (EIU), sponsored by Hewlett Packard Enterprise, has conducted parallel surveys of more than 100 senior bankers and 100 Fintech executives. The objective is to determine their respective views on the impact of Fintech, the strengths and weaknesses of the participants and the likely landscape for the retail banking industry over the next five years.
Corporate Treasurers Focus on Cyber SecurityJoan Weber
Treasury departments at large U.S. companies rank IT security as their top priority for 2015 - ahead of such critical issues as cost management and regulatory/compliance challenges.
These finding come from the results Greenwich Associates 2014 U.S. Large Corporate Finance Study, for which the firm interviewed CFOs or treasury department representatives at more than 500 large U.S. companies.
The study results suggest that U.S. companies are taking action to address security concerns and other IT issues with 63% of the participants saying their treasury departments will increase technology spending in the year ahead.
Good day all,
Please find attached the May 2017 edition of our very informative Newsletter. Apologies for the tardiness.
We look forward to your continuing support and comments. Please send all comments and suggestions to training@kawmanagement.com or training.kawmgmt@candw.ag.
Happy reading.
Alternative Data: Transforming SME FinanceJohn Owens
This presentation summarizes the IFC/World Bank/G20 GPFI report on the landscape of alternative data and players that are expanding access to SME finance. This presentation was prepared jointly with the effort of my co-author Lisa Wilhelm. The complete report can be downloaded at https://www.smefinanceforum.org/post/alternative-data-transforming-sme-finance
How Banks Can Close the 'Value Gap' and Regain Customer TrustJoseph M Bradley
Across the globe, banks have faced a wide array of challenges in recent years. At a time of rapidly changing consumer expectations, upstarts from outside
the traditional banking industry have used technology to disrupt incumbents.
Risk of chinese companies finance decisions international resource developm...Kimberly Kirkendall, CPA
Doing business in China means understanding how your partners (customers or suppliers) are financing their business. The lending market in China is very different from the U.S., this presentation explains how Chinese companies finance the operations of their businesses.
The burgeoning onshore wealth management industry has its own unique set of challenges and positioning but it is becoming increasingly attractive for banks with the rising wealth of Asian consumers.
Since many of these domestic banks are still in an investment mode, cost-to-income ratios in the industry are steadily increasing. Intensifying competition from domestic and foreign players over more careful and knowledgeable clients and the recent increase of regulatory requirements and administrative work present real challenges in scaling up.
Questions will thus arise - how can onshore wealth managers scale up their business effectively and efficiently without incurring the significant costs of their more mature peers? Which operational investment should be given priority within a finite budget – back-office, front-end, staffing or product manufacturing?
These issues and more will be discussed in the webinar on Scaling Up Your Wealth Management Business organized by Private Banker International and Sopra Banking Software based on research that has taken place around the region and globally.
An overview of our company and the work we do with funding of large projects such as infrastructure, humanitarian and environmentally beneficial developments.
Our event on 2 March for SMEs interested in finding out about the creation and protection of IP, cashflow finance and/or broadening access to alternative sources of funding.
It was aimed at digital and technology businesses, and as well as an overview of the opportunities for SMEs in the sector, expert colleagues from Metis Partners (intellectual property specialists), Jumpstart (specialists in R&D tax credits) and the Lending Crowd (insights on crowdfunding). The session was a short, sharp, non-technical guide for businesses to consider some potentially new approaches to practical aspects of successful innovation.
Szilágyi Péter - Disintermediaton a pénzügyi szektorban. Régi versus új mediá...FinTechAkademia
Mit jelent valójában a disintermediation a pénzügyi szolgáltatások piacán? Mely országokban történt eddig a legjelentősebb változás? Kik az új szereplők, vagy melyek az új szerepek? Mi lett/lesz a hagyományos közvetítőkkel, szereplőkkel? Milyen szerepet játszanak a technológia és a fintech startup-ok a disintermediation folyamatában? Mi várható 5-10 éven belül a disintermediation eredményeként? Ezekre a kérdésekre keresi a válaszokat Szilágyi Péter a CEU docense.
Similar to Nigel Morris / QED Investors / Leading Innovation at Big Bank Scale (20)
In Machine Learning in Credit Risk Modeling, we provide an explanation of the main Machine Learning models used in James so that Efficiency does not come at the expense of Explainability.
(Contact Yvan De Munck for more info or to receive other and future updates on the subject @yvandemunck or yvan@james.finance)
"European market for online alternative finance surges"
"The European market for online alternative finance grew by 144 per cent last year to almost €3bn and could hit €7bn this year as companies look to tap new sources of capital, according to a new report.
The analysis, published on Monday by the University of Cambridge Judge Business School and professional services firm EY, reveals how what was once a niche market has become a small sector that is still experiencing rapid growth." (ft.com)
#marketplacelendingrevolution
Bryan Zhang / Insights from the latest Peer-to-Peer Lending ResearchJames by CrowdProcess
Bryan Zhang: Insights from the Latest P2P Lending Research
Keynote address by Bryan Zhang, of University of Cambridge, at LendIt Europe 2014. The title of this presentation is Insights from the Latest P2P Lending Research.
Giles Andrews: Peer-to-Peer Lending - Born in a Barn
Keynote address by Giles Andrews, of Zopa, at LendIt Europe 2014. The title of this presentation is Born in a Barn.
Samir Desai / Funding Circle / Building a Better Financial WorldJames by CrowdProcess
Samir Desai: Global Lessons in Marketplace Lending to Small Businesses
Keynote address by Samir Desai, of Funding Circle, at LendIt Europe 2014. The title of this presentation is Global Lessons in Marketplace Lending to Small Businesses.
Cormac Leech: A Banking Analyst's Perspective on P2P
Keynote address by Cormac Leech, of Liberum, at LendIt Europe 2014. The title of this presentation is A Banking Analyst's Perspective on P2P.
Rhydian Lewis: Why P2P Lending is a Good Thing
LendIt Europe 2014 keynote presentation by Rhydian Lewis, of RateSetter, at LendIt Europe 2014. The title of this presentation is Why P2P Lending is a Good Thing.
Third quarter survey results revealed that private capital access decreased for less than one percent (0.3%)
comparing to the access three months ago. Private capital demand decreased for six percent (6.2%) since Q2.
Fifty percent (50%) of respondents report the current business environment is restricting their growth opportunities
for business and forty-two percent (42%) of respondents report the current business environment is restricting
their ability to hire new employees. Twenty-nine percent (29%) of business owners said they transferred personal
assets to their business over the last three months. Forty-four percent (44%) of respondents have financing
coming from outside sources.
The rapid ascent of peer to peer and online direct lending models: the impact...James by CrowdProcess
The Great Recession, increased regulation, regulatory back- lash, and the decrease in consumer confidence in the banks have led to major disruptive developments in the way people and small businesses access credit, an important element to the growth of the U.S. economy. Given that more than 70% of U.S. GDP is related to consumption, access to credit is required for continued growth. As a result of the aforementioned events over the past five years, peer-to-peer and online direct lending have rapidly emerged as a solid alter- native to mainstream banking and lending. It is poised for very strong growth and is likely to change the landscape fundamentally in a relatively short time. The banking sector continues to be one of the few remaining sectors where fundamental disruption can still occur as banks find themselves in a unique environment where government related institutions implement new changes, leaving banks paralyzed and unsure how to move forward. As these recent competitive forces are unlikely to reverse (barring any legislative action) the banks and other intermediaries really only have three options: join them, innovate, or die. Given that the latter is not an option (though the banking sector has gone through a phase of massive consolidation since the early eighties with less than half the number of banks left), banks and credit card companies are having difficulty determining how they will be able to beat the continuing onslaught. Joining the party and splitting the spoils to the benefit of all involved is the preferred, if not the only, realistic option for most. The concept of “collaborative consumption”1 is increasingly pervasive in our culture and peer-to-peer and online direct lending, it can be argued, is an expression of this new movement in which trust is the “new currency.” To win that “currency” back, traditional financial services companies will have to think outside the box, to regain their place at the top. The issue is timely, urgent, and not going away any time soon.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
2. 2
2
My vantage point spans from “Big Banking” to start-ups
Co-‐founded
in
1994,
President
and
COO
through
2004
Co-‐founded
in
2007,
Managing
Partner
3. 3
3
We moved on to create QED
§ Venture Capital firm focused on Digital
Marketing and FinTech
§ Founded in 2007
§ Collectively 95+ years of experience in
leveraging data in Financial Services
§ Breakthrough disrupters audaciously
building a franchise or attacking the
incumbents
§ Play active, hands-on consigliore roles
with leaders leveraging our operating
experience with data driven strategies
Miles
Reidy
(Special
Advisor)
Caribou
Honig
Frank
Rotman
Nigel
Morris
4. 4
4
Over the last seven years QED has worked with numerous FS innovators
Pre-‐2011
2011
2012
2013
2014
5. 5
5
The current climate favours disruptors over traditional banks
Banking
Climate
Changing
Environment
1. Consumer has lack of trust in banks
2. Regulation increasing (CFPB, etc),
Rising capital requirements
3. Retail cost reduction focus
4. Technology debt
5. Consumer lending and I-Banking
headwinds
6. Harder to hire/hold talent
1. Mobile acceptance
2. Splintering value added chain
3. Non-bank entrants (Amazon, Ebay,
Apple, AliPay, etc.)
4. Increasing importance of affiliates
5. New data sets – geo, behavioural,
sand social
6. 6
6
An entire ecosystem has emerged to support this new world
Source:
Orchard
PlaQorm
Advisors
LLC
7. 7
7
Several lending platforms are achieving breakout scale – and accelerating
growth
Annual
Loan
OriginaSon
Volume
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Lending
Club
Prosper
SoFi
OnDeck
Capital
CAN
Capital
Funding
Circle
2012
2013
2014
(E)
EsSmates
derived
from
public
facing
statements
and
filings
$
Billions
8. 8
8
And new entrants continue to emerge, further splintering the value chain
US
EUROPE
OTHER
CHINA
9. 9
9
Traditional bank cost structure makes it difficult to compete with
specialized originators
Source:
Lending
Club
materials
10. 10
10
We learned how to operationally harness our IBS
§ Integration of marketing, risk and operations
§ Can do, curious, hypothesis-oriented culture
§ Top drawer analytical talent
§ Job shop flexibility to perform and read thousands of tests and continuous flow
economics to keep expenses competitive
11. 11
11
Some Major IBS Lessons
§ Start with hypothesis- watch competition, listen to customers, seek parallels
§ Test the limits
§ Become students of multi-phased testing
§ Peel the onion
§ Test and re-test vs. controls – the world changes
§ Show patient, careful testing then explosive growth.
– The IBS Paradox
12. 12
12
We do see a number of banks beginning to respond…
Building
InnovaSon
Teams,
Incubators
and
“Labs”
Internally
Acquiring
and
Partnering
with
“InnovaSon
DNA”
Leveraging
rich
deposit
franchises
to
“buy”
loans
from
innovators
succeeding
at
originaSon
13. 13
13
The evolution of underwriting and the dawn of “Big Data”
Phase 1.0
Manual Underwriting
Phase 2.0
Automated Scoring
(introduced bureau data)
Phase 3.0
Automated Scoring
(powered by bureau AND
alternative financial data sets)
Phase 4.0
Automated Scoring
(now also incorporating social
and other non-financial data)
14. 14
14
New data sets provide considerable predictive ability over traditional
variables alone
FICO score
Source: L2C
Non-‐tradi@onal
data
• Database
of
known
frauds
• Debit
acct
behavior
• Payday
loan
applicaSons
• Check
cashing
acSvity
15. 15
15
The internet has redefined the “big” in Big Data
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Number
of
uniques/customers/accounts
(Billions)
• FI’s
had
bragging
rights
to
Big
Data
in
the
‘90s
• Their
reach
is
an
order
of
magnitude
less
than
tech
giants
• Bank
data
(assets,
liabiliSes,
payments)
does
have
signal…
• But
bank
data
is
one
signal
out
of
many
(geo,
demo,
interests,
surfing,
purchases,
sku,
etc)
Source: company reports.
16. 16
16
“Stage 4” BIG data is diverse and can be very impactful
Wonga
uses
over
8,000
dis@nct
data
points
to
price
it’s
loans
Example
–
“Slider”
data
Behavioral
data
from
slider
interacSon
–
users
that
immediately
“max
out”
have
higher
default
risk
Other
“Stage
4”
data:
-‐ Browser
data
-‐ Mobile
device
type
-‐ Facebook
data
-‐ Time
of
day
-‐ Search
engine
of
choice
(Google
or
Bing?)
-‐ Time
of
day
-‐ IP
address
/
locaSon
17. 17
17
The US is struggling to make use of all the rich new data sources…but
the rest of the world shouldn’t have the same problem!
Untouchable data per US regulation:
- Education data
- Can’t require a checking account (or ACH
payments) as a condition of extending credit
- Age data (unless Seniors automatically get best
“class”)
- Occupation data
- Demographic / Zip code data
- Facebook data
- Other social media data (imagery reveals age,
gender, race)
…and
there
are
new
data
sources
emerging
everywhere
that
will
have
fantas@c
predic@ve
power
that
aren’t
useable
in
the
US
but
are
opportuni@es
globally!
Blocked
in
the
US,
but
leveraged
for
innovaSon
abroad
19. 19
19
New data sources create leverage for marketing and operations – not just
underwriting
Drama@cally
beber
tools
and
placorms
emerging
to
enable
marke@ng
teams
to
drive
down
CPA
and
improve
yield
throughout
the
lifecycle
Marke@ng
value
• New
plaQorms
and
3rd
party
data
are
driving
down
cost
to
acquire
• New
channels
emerge
to
reach
higher
yield
customers
/
more
valuable
segments
Opera@ons
value
–
• Complimentary
tools
and
similar
data
also
allow
for
improved
operaSons
down
the
funnel
• OpportuniSes
emerge
to
improve
all
aspects
of
the
customer
experience
through
personalizaSon
Source: Content Marketing Institute
20. § MBNA
…develops credit scoring models to evaluate common applicant characteristics and their correlation to credit risk and utilizes such models
in making credit assessments. Less than half of the credit applications received by the Corporation were approved. Analysis is derived
from previous experiential data and makes use of credit scores and other statistical techniques.
§ Providian
…business strategy is dynamic risk management capabilities, which utilize proprietary technology and business processes to optimize the
balance between risk and return. The Company's internally-generated customer segmentation and credit risk models are applied and
continually updated to address the individual customer's risk profile in product pricing, account management and collections. The
Company uses television, the Internet and alternative media to market to consumers and establishes pricing and credit limits based on
the customer's credit profile and loan feature preferences and on the Company's profitability and risk guidelines.
§ NextCard
…an Internet-based provider of consumer credit combining expertise in consumer credit, an exclusive Internet focus and sophisticated
direct marketing techniques with the aim of attracting profitable customer segments on the Internet. We have developed a set of
underwriting criteria based on risk models utilizing industry data as well as our own internally developed decision rules and analytic
techniques. Our underwriting, risk management and pricing policies are designed to balance credit risk and potential profitability by
adjusting the interest rate, credit limit and required minimum balance transfers offered to a particular customer.
§ Metris
…uses internally and externally developed models to supplement our evaluation of consumers. These models help segment prospects
into unique credit groups within each FICO score range, allowing us to better evaluate individual credit risk and to tailor our product and
pricing accordingly. We believe that our proprietary models give us a competitive advantage in evaluating the credit risk of middle-market
consumers. We monitor the performance of the proprietary models and continually re-evaluate the effectiveness of these models in
segmenting credit risk, which results in further refinements in our targeting and selection strategy.
Déjà vu all over again?
Source:
Company
10K
filings
21. 21
21
Simply paying lip service to “data” was not a magic wand…and won’t be
today
§ MBNA -- sold to Bank of America in 2005 for $35 billion
WSJ Dec 2009- BofA…cards also lost $4.5 billion during that same period, making it the worst-performing Bank of America business line.
It also had a default rate higher than other major rivals, at 13%
§ Providian -- Sold to Washington Mutual in 2005 for $6.5 billion
FORTUNE March 2002, There once was a company that invented a business, and it made a lot of people a lot of money. But it was also
doing some crummy things. It made a quiet accounting move that shook Wall Street's confidence. Top execs started selling stock. The
share price cratered. The CEO abruptly resigned…Signing up ever-riskier customers was a terrible mistake.
§ NextCard -- Filed for bankruptcy November, 2002
– On February 7, 2002, the Office of the Comptroller of the Currency (“OCC”) closed NextBank and appointed the Federal Deposit
Insurance Corporation (“FDIC”) as receiver for NextBank
§ Metris -- Sold to HSBC/Household in 2005 for $1.6 billion
"The company finds itself in this precarious position partly because of the economy but also because of a decision that was made in 2001
to extend the credit limits of the company's most profitable customers," wrote Julie Forster in the Star Tribune in March 2003.
Metris’ Direct Merchants Credit Card Bank subsidiary agreed to make operational changes at the behest of the Office of the Comptroller
of the Currency (OCC), the chief regulator of the credit card business. Losses for 2002 totaled $33.9 million. Stock traded between $1 and
$2 per share.
22. 22
22
The market was ruthless to the insincere – we shouldn’t expect it to be
different today
Source:
Company
10K
filings
and
QED
analysis
MBNA
Capital
One
Nextcard
Providian
Metris
23. 23
23
The current climate favours disruptors over traditional banks
Banking
Climate
Changing
Environment
1. Consumer has lack of trust in banks
2. Regulation increasing (CFPB, etc),
Rising capital requirements
3. Retail cost reduction focus
4. Technology debt
5. Consumer lending and I-Banking
headwinds
6. Harder to hire/hold talent
1. Mobile acceptance
2. Splintering value added chain
3. Non-bank entrants (Amazon, Ebay)
4. Increasing importance of affiliates
5. New data sets – geo, behavioural,
sand social
24. 24
24
So what? Where do we look next?
1. Is there a valuation bubble (3 S1’s filed)?
2. Is it a given that innovators will continue to succeed? Will they hit critical mass?
3. Will lenders and originators survive a recession?
4. Will funding dry up when rates rise?
5. Will early innovators simply be absorbed back into the chain via acquistion by big
banks? Which ones will hit escape velocity? Which will build national brands? Will they
become banks (think COF)?
Invite me back next year and I’ll tell you what happened!