data science. credit scoring. digital finance€¦ · high client loyalty: 90% of new clients...

Data Science. Credit Scoring. Digital Finance

2

14 3692

221

531

853

5 21 68133

250388

2014 2015 2016 2017F 2018F 2019F

Issuance ($m) Revenue ($m)

Sep-

12

Nov

-12

Jan-

13

Mar

-13

May

-13

Jul-1

3

Sep-

13

Nov

-13

Jan-

14

Mar

-14

May

-14

Jul-1

4

Sep-

14

Nov

-14

Jan-

15

Mar

-15

May

-15

Jul-1

5

Sep-

15

Nov

-15

Jan-

16

Mar

-16

May

-16

Jul-1

6

Sep-

16

Nov

-16

Jan-

17

Mar

-17

May

-17

Jul-1

7

LEADING INTERNATIONAL FINTECH COMPANY

Group overview

Innovative Digital Finance (ID Finance) Global expansion and unique registered clients

Financial highlights

RU 2012

KZ 2014

GE 2014

SP 2015

PL 2015

BR 2016 3.7m

Mission Build an international data-driven financial

institution to provide financial services to the underbanked

Key facts

Founded: 2012 Employees: 400+ Geographic presence: 8 countries Products: consumer finance provider

Investment highlights

Scalable model: launch in new geography within 3 months

Exceptional traction: net loan portfolio grew at a 279% CAGR H1 2014 – H1 2017

High client loyalty: 90% of new clients generate repeat business.

High Return on Marketing Investment:$4.4 cash net income from $1 invested into CAC

High ROAE: 60% in H1 2017

High profitability: $16m of net profit expected in 2017

Technology and data driven: Proprietary scoring model and in-house IT platform

MX 2017

BL 2012

-$1m$3m

$7m

$16m

$36m

$56m

Profit after tax

3

RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY

Our history

$0.2m

Loan issuance dynamics

$1.7m $13.6m $35.9m $92.5m

Professional and motivated global and local teams

Centralised IT and risk-infrastructure

Monitoring of key indicators in real time

2012 2013 2014 2015 2016

Launch and risk optimisation CIS expansion European expansion LATAM expansion

Russia

Scoring and risk-management

Round A: $3.5m

Spain

Poland

Round B: $6.0m

Georgia

Kazakhstan

Installment loans

Brazil

New products:

AmmoPay and Solva

Major factors for effective scaling

4

GLOBAL TEAM OF SPECIALISED FINANCIAL SERVICES EXPERTS

Strong management team

Co-founder, Chief Executive Officer (CEO)14 years of work experience in banking and finance

Previously held various positions at Deutsche Bank, Renaissance Capital and RBS within debt capital markets

in London and Moscow

Graduated from Cambridge University with a degree of Master in Economics

Co-founder, Chief Operational Officer (COO)Over 10 years of experience in banking and finance

Previous experience: Deutsche Bank, London

Holds Chartered Financial Analyst degree

Graduated from Imperial College with a degree of Master in Finance

Chief Financial Officer (CFO)

Boris Batin, PhD Alexander Dunaev, CFA David del Pozo Calleja

26+ years of experience in managing investments and finance departments

Previous experience in Inversis Bank and ING Direct Bank (CFO)

Graduated from Complutense University (Madrid) in Economics

Chief Risk Officer (CRO)

Ekaterina Kazak

10 years of work experience in risk management

Previously worked as Head of Russia & CIS Experian Analytics

Graduated from Moscow State University of Economics, Statistics and Informatics

Chief Marketing Officer (CMO)

Alessandro Ceschel

11 years of professional experience in Digital Marketing and international IT Projects

Previously successfully developed online internet businesses B2C, B2B and P2P in Spain – Ulabox,

Logismarket, Socialcar, worked in MNC (Nestlé) and in early stage startups

Graduated from Padova University with a Master in Industrial Engineering and Business Administration

Chief Technical Officer (CTO)

Pavel Shareyko

13 years of experience in software development, including development of high-load applications and financial

systems

Previous experience: Lead developer at Itransition

Graduated from Belorussian State University

5

Low risk Medium risk High risk

OUR PRODUCTS TARGET UNDERBANKED CUSTOMERS

Product Portfolio

Banks’ maximum margin

Low

mar

gin

Hig

h m

argi

n

Minimum margin given borrower risk

Banks’ target lending market

Target lending market

6

ID FINANCE CONTROLS THE ENTIRE CUSTOMER JOURNEY THROUGH HIGHLY EFFICIENT RISK MANAGEMENT

Highly efficient IT & risk-management system

Client acquisition

Scoring and fraud-analysis

Client management

Pre-collectionsCollections

Legal support

Fraud prevention

Data points are collected and analyzed in real time

10,000+Applications are processed automatically

98%Of the debt recovery achieved in-house through efficient client management system

70%Of clients become loyal customers through effective CRM system

90%

CLIENT LIFE CYCLE

Risk management present at every step of client life cycle ID Finance taps into global and local pools of information

7

HIGHLY EFFECTIVE CLIENT ACQUISITION AND RETENTION STRATEGYClient acquisition funnel remains robust

* Marketing costs divided by amount issued

H1 2016 H1 2017 Conversion ratesFor H1 2017 Historical data

Website visitors

9m 11m

Conversion to applications

Applications 0.9m 1.1m

Approval rate

Number of loans issued

186k 338k

Retention rate

Amount of loans issued

$34m $80m

Loan marketing cost*

31%

90%

10%

4.3%

0,21,6

4,5

8,810,8

0

5

10

15

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Website visitors, #m

0,02 0,14

0,49

0,861,08

0,0

0,5

1,0

1,5

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Applications, #m

1,6 1676

186

338

0

100

200

300

400

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Number of loans issued, #k

$0,4 $3,6$14

$34

$80

0

20

40

60

80

100

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Amount of loans issued, $m

8

Client acquisition channels

9%

29%

38%

25%

881 1 1581 774

3 643

5 112

-

1 000

2 000

3 000

4 000

5 000

6 000

H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Loans acquisition channels as of Q1 2017 Amount issued ($k) and marketing cost (%)

Highlights MoneyMan search requests (#k)

925kx4.4

Return on $1 invested in CAC

Brand search requests per month

• Well-diversified and balanced client acquisition channels

• Focus on organic traffic growth and increasing the loyalty rate in all countries of presence

• Strong brand recognition improvement

• $1 issued to a new client generates $6+ of loans issued per client life

Paid traffic

SEO, SMM, referrals

Affiliates

Direct marketing

55% Average H-o-H

growth of search requests

COST EFFECTIVE ACQUISITION VIA OPTIMAL MIX OF ACQUISITION CHANNELS

$80

4,3%

-1%

1%

3%

5%

7%

9%

11%

13%

15%

0

10

20

30

40

50

60

70

80

90

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

9

52%

25%

9%

9%4%1%

ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH

Portfolio quality

Historical group NPL* rates Historical group level of NPLs*

$16.5m

$193m $176m

* Loans with payments overdue 90+ days are considered non-performing loans (NPLs)

$240m $221m

$19,4m

$0m

$50m

$100m

$150m

$200m

$250m

$300m

Loans issued since launch NPL as of H1 2017 Repaid and performingloans H1 2017

43,4%

23,5%

14,6%12,1%

9,8% 10,1% 11,2% 10,6%8,1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 Jul-17

47%

18%

19%

10%6%1%

Net outstanding portfolio (July 2017) Revenue structure (July 2017)

Russia Kazakhstan Georgia Spain Poland Brazil

Net portfolio$56.4m

Revenue$10.3m

10

100,0%

STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS

Geographical expansion

1%

20%

79%

Loans issued. 2019F

30%

35%

35%

Russia and CIS AmericasEurope

Loans issued. July 2017

Share of European and

LatAm21%

Share of European

and LatAm65%

Loans issued. 2013

Share of European and

LatAm0%

Geographic diversification 2013-2019

Launch Population (m) Internet users (m) Mobile users (m)

Russia 2012 144 103 103

Kazakhstan 2014 18 10 15

Georgia 2014 4 2 3

Spain 2015 46 37 40

Poland 2015 38 27 27

Brazil 2016 208 123 130

Mexico 2017 127 73 86

Colombia Q4 2017 48 27 33

USA 2018 321 239 258

Peru 2019 31 13 19

Total 985 653 714Current presence Strategic focus

* 2015 WorldBank, UNdata, eMarketer; 2016 Statista, Budde

11

FOCUS SHIFTING TOWARDS LONGER-TERM PRODUCTS AND MORE AFFORDABLE LOANS

Product diversification

Loan volume

Market size

80%

20%

Share of long-term loans 80%

44%56%

100,0%



Focus on prime users

Client profile

Larger market capacity

Larger volume Lower risk

NPL level

Strategy focus

Loan term

Longer term

Competitive advantage

Lower rates

Single pay loans Installment & POS loans

%

Loan issued. 2019FLoan issued. July 2017Loan issued. 2013

Product diversification 2013-2019

12

Alexander DunaevCo-founder, COO @ ID Finance

[email protected]

Thank you for your

attention!

13

Boris BatinCo-founder, CEO @ ID Finance

[email protected]

data science. credit scoring. digital finance€¦ · high client loyalty: 90% of new clients...

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