beyond frontiers: fintech and peer to peer...

Beyond Frontiers: Fintech and Peer to Peer Lending

Mark YoungCEO & Co-Founder

Challenges for the Incumbents

Hig

h Co

st

Low G

rowth

Opportunities from Digital Technologies

Disrupting Financial Services

The Scenario

People have a need and want a loan to pay for it

The experience of applying for a loan is tedious and time consuming

Long wait for responses &

opportunities missed

Borrowers

Investors

There are many liquid Caribbean

investors

There are few options for investment

Options available can be confusing or disappointing

The SolutionBorrowers

Investors

Provide a new alternative investment

opportunity

Facilitate Lenders and Borrowers

working together

Make the investment easy to use and

simple to understand

Provide an alternative way to

obtain a loan

Make the experience of applying for a loan convenient and easy

Drastically cut the time to get an answer so the emotion of

the need is still there

How It Works

“How Peer to Peer Lending works at www.Carilend.com”https://www.youtube.com/watch?v=jgk0d7vQBZ0

Keys Points

DIVERSIFICATION RESERVE FUNDHIGH QUALITY BORROWERS

Borrowing Activity

Loan Amount

Loan Term

Interest Rate

$17,899

51 Months

11.66%

$15,075

49 Months

11.47%

2019 2018

Decline Rate 57%

Averages

73%

$9,112

43 Months

11.32%

2017

74%

Reserve Fund Position

Reserve Fund

Projected Defaults

Coverage Ratio

6.61%

4.29%

154%

Actual Defaults 1.36%

2019

6.24%

4.25%

147%

0.36%

2018

5.10%

4.22%

121%

0.00%

2017

Reserve fund coverage of Total Loans

Lending Activity

AverageInvestment

AverageInterest Rate

$34,542

8.17%

Total InterestPaid to Lenders $819,341

8.03%

2019 2018

$29,535

7.93%

2017

$23,765

Results

Mitigating Risk

AML/KYC• Adherence to Caribbean highest standard AML regulations• Technology partner built to “border control” standards• 3rd party KYC solution for PEP/Sanction/Watch List etc• Payments only to and from verified local Barbados $ accounts• Highly automated transaction monitoring and suspicious transaction identification

Regulation• Adopted UK regulatory framework - No regulatory framework within Caribbean • Technology platform built to UK FCA regulatory standard• Procedures built to UK P2PFA Operating Standards

Credit Risk• A risk partner with Caribbean and other developing markets experience• Bespoke proprietary origination scorecard• Reserve fund with risk adjusted contributions

.

Lessons Learned

How Do You React?

Questions

Feedback

We are always happy to help!

info@carilend.com

537-4040

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