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 payments can be expensive
• Hidden fees and penalties
• Calls to much
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
Benefit for investors
and efficiency
5 decisions for investors:• Returns to high
• Simple and straightforward
• Portfolio analysis
• Loan analysis
• Auto sell feature
How its work
peer-to-peer lending
Borrowers get fundedInvestors build a portfolio
Borrowers apply for loansInvestors open an account
Borrowers repay automatically
Investors earn & reinvest
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 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
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
• Government protection
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
www.lendingclub.com
By Viktor Osetrov25/06/2014