beyond frontiers: fintech and peer to peer lending
TRANSCRIPT
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!
537-4040
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Carilend.com