peer-to-peer lendingncfacanada.org/.../f.-lending...deck-february-2017.pdfpeer-to-peer lending: a...
TRANSCRIPT
Peer-to-Peer Lending
“Connecting people who want to invest money with people who want to borrow money.”
Peer-to-Peer or Marketplace Lending?
Proven Asset Class
What Happens When The Cycle Starts to Turn
We’re Not Immune to The World of Alternative Facts
Peer-to-Peer Lending: A History
2005 2008 2011 2014 2017
First P2P Marketplace in
World
Receives SEC Registration
First Institution to Fund P2P
Loans
Rapid Global Expansion Through Institutional Capital, Securitization and Structured
Credit Products
Receives Registration From Canadian
Securities Regulators
Lending Platforms: A Comparison
2 Originators 50+ Originators
Retail/Institutional Platforms
Institutional Platforms
100+ Originators 25+ Originators
Retail/Institutional Platforms
Institutional Platforms
Canada UK
Institutional Capital is More Efficient
Alternative Lending vs P2PP2P
Lender
Retail Capital is Sticky
And There is a LOT of Retail Capital
Inflation
1.3% 0.95% >7%3 Year GIC P2P Loans
It’s Sort of a No-Brainer for a Retail Investor
A Lesson Already Learned
What Does The Future Hold?
Looking Outside
P2P/Financial Markets in China
3,000 Platforms
$100 Billion Outstanding
Insured (Principal Protection)
Invest Instantly and Get Paid Daily
Instant Liquidity
96% Aware of P2P Lending
50% Using P2P platform
Looking Inside
• A Business Model founded on the basis of disintermediation cannot now be dependant on an intermediary, we must go back to roots to grow
• P2P will be an asset class for the masses• In the UK, Over half of wealth managers would now recommend direct
lending as an alternative to mainstream cash products.
• The key ingredients that we don’t yet have are Consumer Trust and real Liquidity
A Marketplace With Many Participants
Borrowers
• Helpful tools to manage their life/business
• Cash Flow Management, Accounting, Free Credit Scores
Retail Investors
• Nice UI/UX
• Very Simple and Easy to Use
• Principal Protection (Provision Funds, Insurance etc.)
Institutional Investors
• Detailed Analytics
• Order Execution API
• Portfolio Management Tools
• Regulatory Reporting
Canada as a Global Leader
CanadaUS
Open Wins Every Time
"Open systems thrive.
Closed systems become obsolete."
