greg symons - society one
TRANSCRIPT
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Empowering People’s Potential
Responsible Lending and Borrowing Summit
Tuesday, 28 February 2017
Top 50 Global FinTech2016 KPMG H2 Ventures
Greg Symons, Co-Founder and Chief Operating Officer
Multi-application, secure, SaaS based platform - ClearMatch
Ability to create, transact and report on fractionalised interest in a loan
Funds ring-fenced via managed investment scheme
PLATFORM
BORROWERS
FUNDERS Direct fractional interest in a loan
Ability to create diversified fixed income/credit portfolio across multiple loans
Ability to tailor risk appetite to pre-agreed credit risk grades and tenors
Attractive risk-adjusted returns with predictable cash flows
Risk-based pricing for personal, unsecured loans up of $5,000 to $50,000
Competitive rates – average borrower interest rate lower than Big 4 major banks
Fast, easy, online application and fast turnaround times
Certainty – 2, 3 and 5 yr loan terms; fixed repayments; no monthly fees or early repayment penalties
What is a lending marketplace?
Sept 2014GETCREDITSCORE
LAUNCH
Aug 2012LAUNCHED
SOCIETYONE
Feb 2014REINVENTURE
CAPITAL RAISING
Mar 2014LIVESTOCK
LENDING LAUNCH
Dec 2014MEDIA CONSORTIUM CAPITAL
RAISING: MURDOCH’S NEWS CORP
AND PACKER & STOKES’ PRIVATE
INVESTMENT COMPANIES
2015PARTNER WITH
MUTUALS, CREDIT
UNIONS AND
BUILDING SOCIETIES
April 2016$100 MILLION
ORIGINATED
LOANS ACHIEVED
May 2016CAPITAL RAISING
INCLUDING
PARTICIPATION BY
MUTUALS
Sept 2016$150 MILLION
ORIGINATED
LOANS ACHIEVED
Oct 2016$175 MILLION
ORIGINATED LOANS
ACHIEVED
Dec 2016$200 MILLION
ORIGINATED LOANS
From start-up to scaling up Dec 2016$200 MILLION
ORIGINATED LOANS
2.4%
13% +
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%Major Bank Model
Personal Loans
Deposit Rates
● High ROE● High NIM● 4% of balance sheet● Circa 8-10% NPAT
2.4%
12.99%
8.00%
9.65%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
SocietyOne Model
Lower borrower interest rates
Higher returns for investors
SocietyOne margin 1.65%
Based on SocietyOne customer with A credit grade
● Real fixed income asset class● Strong risk adjusted returns● Borrower rates set by individual risk-based pricing● Benefits shared by borrowers and investors
To structure a model that directly competes with major banks
Depending on risk appetite and return requirement, investors can choose their own mandate with the ability to choose between:
• Credit Grades• Tenor• Participation Amount• Re-investment Option.
Investors can invest in portions or fractions of various personal loans through the platform and effectively diversify (by borrower and geographically) their portfolio
True diversification: fractional loans
Online Application
Identity CheckCredit Score and Report
Bank Statement
Credit Review Approval
A Disciplined Approach to Credit Assessment How Does it Work?
1 2 3 64 5
10 minute process with over 50 data points captured
Dun & Bradstreet greenID to pass AML/CTF
Veda Advantage –largest credit bureau in Australia
Yodlee – automatic bank statement retrieval, analysis and verification
All applications are reviewed by ex-bank credit officers
Typically less than 10% of applications are approved
ClearMatch Real Time Integration – Data Automating Processes
SocietyOne powered by ClearMatch – how it works
• SocietyOne’s proprietary ClearMatch technology’s Service Oriented Architecture enabling easy integration with third party API’s / web services
• SocietyOne’s 20 strong technology team support partner integration
* SocietyOne borrower profile data as at 31/12/16 and total originated loans as at 31 December 2016 since inception
16%
23%
32%
21%
7%
Credit Grade
AA
A
B
C
D
48%
37%
8%
5% 3%
Residency
Renting
Mortgage
Living WithParents
Boarding
Freehold
9%
34%
25%
21%
11%
Income<$50K
$50K to $75K
$75K to$100K
$100K to$150K
$150K+
13%
31%
30%
26%
Age
21-30
31-40
41-50
51+
29%
23%16%
13%
10%
5%3% 3%
OccupationProfessional
Manager
Other
Office Staff
Trade
Sales/Retail
Director
SelfEmployed
30%
25%
22%
13%
5%3% 2%1%
State
NSW
QLD
VIC
WA
SA
ACT
TAS
NT
True diversification: borrower profiles
10.34%*
Barry,
Investor, QLD
“With SocietyOne, I can now access investments that
were once the domain of the banks. My investments
have performed strongly and added a new level of diversification to my
portfolio.”
Stuart
Investor, NSW
“I had a lot of money in cash…I knew the
banks were getting default rates of less than 2
per cent on their personal lending, so why
not [take the risk] if I am getting
a return of 8 to 9 per cent?”Validate their experience by
reinvesting interest and/or
capital repayments
Average annual return
across both loan portfolios
(net of losses and fees)
Providing ‘Investor Funders’ with a strong opportunity
73%**
• ADIs
• Fund managers
• Credit Unions
• SMSFs
• High Net Worth Individuals
* Rates above are the Effective Annualised Return (EAR) as published on the SocietyOne website and as at 31 Dec 2016
** Calculated as at 31 December 2016 SocietyOne Investor Services data
280+ and growing:
145,000+ Separate investments
Our Mission, Our Values
Mission: Provide a better deal for borrowers and lenders…one brilliant funding
moment at a time
TransparentOpen, honest,
responsible and
trusted to do the
right thing
ImaginativeWe are bold,
creative and develop
innovative solutions
One TeamFocussed,
collaborative and
dedicated to
excellence
ConnectedWorldly, insightful
and passionate
about creating a
fairer, more
rewarding society
EmpoweringWe recognise,
embrace and
enhance the
incredible
potential inherent
within every
individual
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Our vision Australia’s leading, most trusted, people-powered
market lending place
Our 2021 goals 2 - 3% share of the $100 billion
consumer finance market*100,000 customers
* ex-housing, APRA 2016 data
Establishing a strong trajectory for the future
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DISCLAIMER
This presentation has been prepared by Andrew Staniforth, (Representative) as authorised representative, AFS Representative Nos. 434126 and 1008961 of Ironbark Asset
Management Pty Ltd (ACN 136 679 420) being the holder of an Australian Financial Services Licence No. 341020. The Representative is a senior manager of SocietyOne
Australia Pty Ltd (ACN 151 627 977) (SocietyOne Australia).
Ironbark Asset Management Pty Limited is an authorised intermediary which holds an Australian Financial Services Licence (“the Placing Agent”), pursuant to an arrangement
with SocietyOne Australia Pty Limited as Trustee of the SocietyOne P2P Lending Trust as the “Product Provider” in accordance with section 911A (2)(b) of the Corporations
Act 2001 (Cth) (“Act”), as set out in the Placement Letter attached to our Information Memorandum. No copy of this Information Memorandum may be distributed without being
attached to the Placement Letter. No offer document has been registered in any jurisdiction in connection with the placing of the interests in the SocietyOne P2P Lending
Trust.
This presentation has been published in good faith based on the facts known to it at the time of preparation and does not purport to contain all relevant information in respect
of the investment to which it relates. All information contained herein is for informational purposes only. Investors should be aware that past performance is not indicative of
future performance. The document provides information about the SocietyOne P2P Lending Trust. The Trust is an unregistered Managed Investment Schemes and investment
is only available to Wholesale clients. This Is NOT a Product Disclosure Statement.
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Accordingly, any information given is not a recommendation that a particular course of action is suitable for any particular person and should not be regarded as investment
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