Downloaded 75 times
![This week:
5
Total:
88
Credit without borders
Interviews
Key stats
$220Bn
market
60%
approv
al rate
$1,000+
CLTV to
Lender
$100
ARPU
50%
Gross
Margin
$20 Av.
cost
per
report
$10/$120
b2B/b2C
CPA
3%
default
rate
3 pilots
[NEW]
$200
CLTV to
Nova](https://image.slidesharecdn.com/nova-llp-finalpresentation-160309081817/85/Nova-Stanford-2016-3-320.jpg)
Uploaded byStanford University
Nova Stanford 2016
The document details insights from 88 interviews focused on enhancing access to credit for immigrants by leveraging global credit data integration. Key findings highlight the necessity for international credit data in lending processes and the potential for Nova to become a consumer reporting agency (CRA) with significant market opportunities, particularly among immigrants and underrepresented populations. It emphasizes the value of partnerships with credit unions and international CRAs to improve the lending landscape for immigrants facing barriers to credit access.
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Nova Stanford 2016
- 1. Misha Gideon NickyLoek 120 interviews Enabling immigrants access to credit through global credit data integration
- 2. This week: 5 Total: 88 Interviews Key hypotheses FromB2C to B2B From everyone to FCUs From buying credit reports to credit analytics From lender to CRA No lending license, become a CRA 40+ 60+ 60+ 10 5 Pivots # interviews Customers can’t access credit products Lenders need international data They will be willing to pay $100+ Nova can access this data at a CPA of less than $50 Nova is legal Hypotheses tested Pass Pass Pass In progress Pass Pass/fail
- 3. This week: 5 Total: 88 Credit withoutborders Interviews Key stats $220Bn market 60% approv al rate $1,000+ CLTV to Lender $100 ARPU 50% Gross Margin $20 Av. cost per report $10/$120 b2B/b2C CPA 3% default rate 3 pilots [NEW] $200 CLTV to Nova
- 4. This week: 5 Total: 88Credit withoutborders Interviews Nova--Value Proposition
- 5. This week: 5 Total: 88 Interviews Nova hasevolved Esoteric asset financing crowdfunding Student Credit Lines @ Student Loan Rates International Student Credit Cards Student Lending Solution for Corporate Sponsors Foreign Professional LeadGen International Credit Data Aggregator for B2B Startup Garage (Fall ‘15) Lean Launchpad (Winter ‘16) Where we started
- 6. Scrape international data Thisweek: 5 Total: 88 Interviews Original BMC Key Activities Key Partners Value Props Customer Relationships Channels Customer Segments Revenue Streams Connect and map to FICO Local banks will be willing to partner International banks will be willing to partner Borrowers access more/cheaper products CUs underwrite better, faster, cheaper Nova provides new and valuable data to CRAs Education to immigrants on USA system Existing GSB relationships Non-GSB customer relationships Leads from FCUs Non-immigrant workers Lenders Immigrants Receive $100 per B2B underwrite decision International CRAs will be willing to partner capital in the US and realize their potential Data marketing at immigrants
- 7. Holding customer handto export international data This week: 5 Total: 88 Interviews Business Model Canvas Key Activities Key Partners Value Props Customer Relationships Channels Customer Segments Revenue Streams Connect global CRAs together Credit unions underwrite immigrants Secure lending license asap! More/cheaper products CUs underwrite better, faster, cheaper CRAs a data provider not a customer (yet!) Education to immigrants on USA system National Organization of Credit Unions GSB connections for mentors and advisors A tonne of bottom up research!! CUs bring us leads H-class immigrants Direct marketing a second order priority Lenders Workers in home country Receive $100 per B2B underwrite decision Customer approval avoids need for CRA integration
- 8.
- 9. Interviews MVP FULL CREDIT PASSPORTCORECREDIT PASSPORT
- 10. Immigrants feel like“second class citizens” ● Secured cards ● Exorbitant rates with tiny credit limits ● Rejection ● Resort to taking loans from family or local immigrant diaspora This week: 5 Total: 88 Interviews Story 1: Second-class citizens Validated in 40+ interviews
- 11. This week: 5 Total: 88 Interviews Customer relationshipsand segments Selling to all lenders Targeting Aussies in Silicon Valley Credit Unions with a high immigrant base H-1B visas from India and China What we thought What we learned Customer relationships Customer segments BMC
- 12. Interviews This week: 5 Total: 88Credit withoutborders ● Absence of credit options ● Distrusting of products, want to have a trusted brand name ● Value simplicity ● Desire for growth and serving their needs Validated in 40+ interviews
- 13. This week: 5 Total: 88 Interviews “The worldis getting more unequal and Nova credit has enormous potential to help millions of people” - Eric Schmidt Our “big idea”
- 14. Lenders have hacksin the absence of proper information. Auto manufacturers have programs for foreign professionals without credit history. Credit Unions, in the absence of good quality data, make non- data driven lending decisions based on affiliate networks or incomplete information. They all have a need for good quality international credit information. This week: 5 Total: 88 Interviews Story 2: Quality data solves a real pain point Validated in 60+ interviews
- 15. This week: 5 Total: 88 Interviews Promising largescale origination Partnering with CRAs Focusing on global Channels, partners and regulatory Delivering pure B2B Data aggregation US data import Channels Key partners Reg. What we thought What we learnedBMC
- 16. This week: 5 Total: 88 Interviews Bottom-up: door-to-door withBay Area credit unions Through the middle: mapped the credit union space and COLD CALLED Top-down: National Credit Union Foundation, Filene We got out the building Interviews: foreign professionals and Stanford students Survey: immigration survey Feedback: various MVP processes US CRAs: US credit reporting agencies Int’l CRAs: international CRA partnerships Regulation: process, timing and cost of becoming a CRA
- 17. This week: 5 Total: 88 Interviews Story 3:Disrupting the CRAs Regulation to become a consumer reporting agencies is much easier than to become a lender and we can get a CRA license quickly and inexpensively Validated in 20+ interviews
- 18. This week: 5 Total: 88 Interviews “Stories” havetranslated into thematic shifts User pays Broker / issuer of financial products Partner pays CRA Revenue streams Reg What we thought What we learnedBMC
- 19. ● No fatalflaw in business model ● Nova will be regulated as a consumer reporting agency (CRA) because (i) retain consumer information and (ii) receive revenue from lenders ● No licensing required to become a CRA simply requires proper disclosure (1.5 weeks) ● Nova cannot deny services to US citizens ● >50% chance of getting a patent! Interviews Nova will be regulated as a CRA ● Engaged Pillsbury Law through Startup Legal Garage
- 20. InterviewsWeek 1 wethought our comps were lenders We were wrong
- 21. InterviewsCRAs prepare tobe disrupted!
- 22. $30 Interviews Our business model Advisors NovaScore CreditUnions CRAs Legal (recourse) Legal (licenses) FinTechs Feedback (-/+ reporting) Employers $100-$1,000 $20
- 23. Thank you Novamentors...
- 24.
- 25. Interviews Market sizing 42.1MTotal GlobalCitizens in the US as of 2015 1.4MNew-to-country students and professionals in the US in 2014 $155BPotential revenue from Global Citizens in the US
- 26. This week: 5 Total: 88 Interviews Channels -what we found and did What we foundWhat we did Virtual product, virtual channel Data aggregator, validator, processor B2B channel sell through lenders White-labeled Nova terminal B2C channel origination through website Nova landing page. Started (digital) marketing Virtual product B2B: data visualization & summary Start with Nova dashboard. Later API integrations with existing underwriting software Future channel potentially selling aggregated data Maintain database with as much raw data as possible to gather
Editor's Notes
- #11 Without tailored products, they resort to taking loans from family and local immigrant diaspora to fill their credit needs. If someone was able to offer them proper credit products, this would have a powerful word of mouth effect (like the mythical Israeli auto lender “Eric” who gets new arrivals better deals).