kreditech - noah17 london
TRANSCRIPT
How to use AI to empower a global lending plattformOctober 2017
Alexander Graubner-Müller, CEO & FounderNovember 2017
How Lending-as-a-Serviceempowers better Credit at Scale
Three Conferences, One Mission: Empower the European Digital Ecosystem
To provide a physical marketplace that facilitates funding of
digital European companies at all stages
Mission Mission Mission
Connecting Capital with
Entrepreneurs
Connecting European Champions
and Challengers
Connecting Israel’s Startups with Large Corporates
and Investors
30-31 October 2018Old Billingsgate, London
6-7 June 2018Tempodrom, Berlin
13-14 March 2018Haoman 17, Tel Aviv
To promote Israel - Europeanrelationships and enable funding
To bring together future-shaping executives and investors active
across segments driven by digital revolution
Not available
Credit Done Wrong
Not convenient Not trusted
2 Billion
underbanked
Average of 72 hoursfor a loan decision
Between 1 to 5 working days to disbursal of funds
Usually 4 documents and over 40 fields required
“Equifax Says Cyberattack MayHave Affected 143 Million in the U.S.”
“Wells Fargo Review Finds1.4 Million More SuspectAccounts”
World’s biggest banks face£264 bn bill for poor conduct
New Credit Scoring
Credit Done Right #1
Web / Mobile
Personal
Public
Financial
Behavioral
E-Government Services
Microgeographic Intelligence
CreditBureaus
Telcos
Payment Providers
New Data Sources Machine Learning Technology
New Lending Experience
Lean and Convenient Application
Instant and Automated Decision
Individualized Loan Offer
Credit Done Right #2
Mission:
“Provide financial freedom to the next
2bn customers through technology”
Empower customers globally with better credit
Improve quality of life by creating choices
Total loans funded:
1.8m loans
Total funding volume:
440m EUR
Loans granted via mobile:
46%
Evolution since Launch
Customersthat recommend
Kreditech: 96%
Total Customers
Kreditech’s Existing marketKreditech’s Future market
Improving Customer Value
Machine Learning as driving Force
INCREASE DATASAMPLE SIZE
BETTERLOAN OFFERS
Economiesof Data
MORE CUSTOMERS
RE-TRAINMODELS
IMPROVED PREDICTIONS
51.6%
24.0%
12.5%
Investors
2014
2015
2016
2017
Backed by Great Investors
Largest Funding RoundsIn German Fintech
(Equity in $m)
Source: Barkow Consulting ‘Fintech Money Map’
2012Distribution: Web / MobileAmounts: €50 - €750Duration: 7 - 30 days
Microloans Personal Loans
2014Distribution: Web / MobileAmounts: €50 - €5,000Duration: 3 - 48 months
Lending-as-a Service
2016Distribution: Via partnersAmounts: €50 - €5,000Duration: 3 – 48 months
Growing Product Portfolio
Product Configuration
Application Management
Underwriting& Decisioning
KYC & Compliance
Refinancing
Payments,Servicing
and Collections
Modules
Kreditech’s Engine
Lending-as-a-Service (LaaS)
Personal Loans
Kreditechs’ Products
Short-Term Loans
Partner Integrations
Banking
Retail and Payments
Fintech
viaAPI
Customers
viaWeb
MobileTablet
Lending as a Service API
Personal Loans
Digital Loan Origination
Pre-approvals
0% Finance
Installment Finance
Delayed payments
Consumer Credit
Service Monetization
Funding source
“Avoid customer churn through offering credit to previously excluded customer groups”
“Grow sales by making goods and services affordable to new market segments”
“Complement own product portfolio in a rebundled financial ecosystem”
Banking Retail & Payments Fintech
Use-Cases for Lending-as-a-Service
Euro area
Smartphone
Mexico India Indonesia
€ 2528
16%
40%
28% 61%
88%
35%
€ 1141
127%
182%
73%
€ 550
140%
200%
80%
€ 500
Notebook
Plane ticket
As % of monthly household income
Making Purchases affordable with POS Finance
Income Purchase
Pay full amount -> no sale
Income Purchase
Pay in installments -> sale
POS Finance
Monthly Household Income
Sales Volume
POS Finance to empower E-Commerce in Emerging Markets
PayU - Kreditech marketPayU, future Kreditech market
Basket Size
Sales Uplift
€357
Approval Rate
Decision Time <60s
User Inputs 12
Default Rate
11.15x
2.5%
85%
Success Metrics
Customer
Partner
Make purchases affordable
Fair cost of credit
KreditechDifferentiate from
competition
Serve new market segments
Scalable originations
Can offer better conditions
Why Lending-as-a-Service is a Win-Win-Win
Selected Completed NOAH Transactions
Focus on Leading European Internet companies
Covering over 400 companies across 25 online verticals, a broad range of over 500 investors as well as 100+ online-focused corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes management distraction
NOAH Advisors is globally well connected and has direct access to virtually all key players in the industry
Knowledge of and strong relationships with potential buyers’ key decision makers
Proactively finds and unlocks attractive investment opportunities for leading investors
Annual NOAH Conference in its 8th year
Over 40 years of combined relevant M&A experience
Routine execution of M&A and financing transactions with sizes of several billion euros
30 successfully completed NOAH Advisors transactions underline successful transfer of M&A competencies to the Internet sector
Entrepreneurial mind-set, focused on growing the business and establishing a reputation for excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures align interests of clients and NOAH Advisors, and demonstrate conviction to deliver top results
Creative deal solutions
December 2014
September 2014
October 2014
May 2014
Sale of 100% of
for $800m to
Exclusive Financial Advisor to Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to Trovit and its Shareholders
Sale of controlling stake in
to
Exclusive Financial Advisor to Facile.it and its Shareholders
sold 100% of
for $228m to a joint venture between
Exclusive Financial Advisor to Yad2 and its Shareholders
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET CORPORATE FINANCE BOUTIQUE
September 2016October 2016
December 2016
Financial Advisor to Oakley Capital
®
Marco RodzynekManaging Director & Founder
Jan BrandesManaging Director
Justus LumpeManaging Director
The NOAH Advisors Core Banking Team
Nikhil ParmarDirector
Acquisition of a Majority Stake in
by
from
at a valuation of €300m
Investment in
Exclusive Financial Advisor to KäuferPortal and its Shareholders
by
84% Ownership
Financial Advisor to Silver Lake
Investment in
by
August 2017
Financial Advisor to EMK Capital
Acquisition of a Majority Stake in
by
at a valuation of $200m