Internet Finance in Latin...

Internet Finance in Latin America Getting high net yields thru Marketplace Lending

Alejandro Cosentino

Founder & CEO

Lendit China Shanghai

June 17, 20161

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AFTER DOMINATED THE MARKETS FOR YEARS

Banks Finally Have Competition in Latin America

• Intermediation is no longer necessary

• Technology made it possible, cheaper

• Sharing Economy changed landscape

• Authorities support FinTech trend

• Millennials are the driver for FinTech

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Colombia

Population: 48 M GDP: 378 B Ratio: 45% Brazil

Population: 200 M GDP: 2.4 T Ratio: 65%

Mexico

Population: 122 M GDP: 1.26 T Ratio: 26 %

Peru

Population: 30M GDP: 202B Ratio: 26%

Chile

Population: 18 M GDP: 227 B Ratio: 70%

Argentina


• Population: 625+ Million

• GDP: US$ 5 Trillion

• Debt Market: US$ 2.2 Trillion

PAN-REGIONAL OPPORTUNITY

Why Latin American Emerging Markets Are Attractive?

Low penetration of loans vs. GDP

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Deposit & Lending interest rates % call for disruption

Bank spreads are one of the biggest around the world

• LatAm has low inflation rates

• FX under control

• Banks dominate the space

• Spread are huge (30%-100%)

• Low penetration credit vs. GDP

• High Net Yields in US$

Colombia

Population: 48 M GDP: 378 B Ratio: 45% Brazil

Population: 200 M GDP: 2.4 T Ratio: 65%

Mexico

Population: 122 M GDP: 1.26 T Ratio: 26 %

Peru

Population: 30M GDP: 202B Ratio: 26%

Chile


Argentina


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Source: Liberum

▪ GEN Y earns its salary ▪ 70% are 24+ years old

▪ 25+ hours/month online ▪ 90% use social nets

▪ 97% use the Internet for pre-purchase research

IT’S A NEW MARKET BEHAVE DIFFERENT BETTER DECISIONS

DESCRIPTION

IMPACTS

LatAm Market Size internet base 320 Million

LATIN AMERICAN INTERNET DYNAMICS

Mirrors and Even Skews Ahead of Global Trends

Source: www.internetworldstats.com, as of June 30th, 2015

comScore Media Metrix, June 2015

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Market Conditions Ready for Institutional Lenders Infrastructure + Data

• Credit Bureau Information available

• State-Of-Art Acquisition Tools • Diversified Acquisition Channels

• Online Acquisition works 24/7

• e-transactions and ACH add efficiencies

Colombia Brazil

Mexico

Peru

Chile

Argentina

Huge Leap in P2P Awareness Since 2012

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Source: Google Trends

“Peer to Peer Lending” Google Trend “Lending Club - USA” Google Trend “CreditEase - CHINA” Google Trend

*** “AFLUENTA - AR” Google Trends ***“Rate Setter - UK” Google Trends“FundingCircle - UK” Google Trends

KNOWLEDGE LEADS TO ADOPTION BY CONSUMERS AND SME’S

2012 2016 2012 2016 2012 2016

2012 2016 2012 2016 2012 2016

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• First & only Pan-Regional crowdlending network

• FinTech = better loans & better yields

• Solid Technology Platform & Experienced Team

• Expecting to complete blueprint by 2018

• First Class Shareholders

LATINOS ARE EARLY ADOPTERS OF WORLDWIDE TRENDS

Afluenta Brings Marketplace Lending to LatAm

2012

3Q 2016

20152017

2017

2018

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AFLUENTA PAN-REGIONAL

First LatAm P2P working as USA or EU MPL

Positive Net Yield across different lenders clusters

Consistent and solid loan volume growth Growing average loans size

Better yield vs. Bank products Increased # of lenders per loan

More information on: www.afluenta.com/estadisticas

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Afluenta Operates Full Cycle Automated Processes

ID customersCredit Assessment & AML

Fractional LoansOnline Auction

Secondary Market

Servicing Loans

CROWDLENDING REMOVES THE MIDDLEMAN

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LIFE INSURANCE

Afluenta earns 0.115% on life insurance credit balance

LENDERS

Pay 2% per each loan

collected on monthly payment

SECONDARY MARKET Sellers and buyers pay 1%

for securitization

BORROWERS

Pay 2.5 - 6%

per credited loan

FEE STRUCTURE

Afluenta Collects from Both Borrowers and Lenders

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10 KPIs about AfluentaMODEL ALREADY VALIDATED

1. 5.0 M unique visitors (3.5 M last 12 months)

2. 270,000 community members 3. Loans ups to US$ 10K

4. Average loan data: US$ 2,5K @36 month

5. Originating US$ 1M a month

6. 100% retail investors

7. 95% of apps answered in 15 seconds.

8. Avg net yield annual 20% in USD 9. Delinquency+90 days: 4.5%

10.Customer Satisfaction: 95%

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Thank you!

Av. Dorrego 1789 5to. piso Oficina 503

(1414) Ciudad Autónoma de Buenos Aires

Teléfono +54 (11) 5219 6655

[email protected] @afluenta

facebook.com/afluenta

www.afluenta.com

Internet Finance in Latin...

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