proprietary & confidential – prosper marketplace, inc. © 2009 october 23, 2009
Post on 22-Dec-2015
214 views
TRANSCRIPT
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
October 23, 2009
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
2
What is Peer to Peer Lending
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
2
P2P lending is a fundamentally disruptive shift in financial services that capitalizes on current broken lending & regulatory models
Prosper has built the leading P2P lending marketplace
Individuals and institutions with money bid on fractional pieces of loans to individuals and small businesses
Borrowers gain a new way to access credit and build richer credit histories
Lenders gain a new asset class that’s transparent and diversified, as well as simple and engaging
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
3
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
3
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
3
Prosper is the Market Leader in P2P Lending
Pioneered Peer-to-Peer lending in 2004
840,000 members
$180 million in funded loans
Approximately 6,000 loans to small business owners
P2P Market Total
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
4
How it Works:Borrower Makes a Loan Listing
Borrower sets max rate
Borrower sets max rate
Prosper provides credit data and
risk rating
Prosper provides credit data and
risk rating
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
5
How it Works:People Bid on Loans
Online auction
Bid Tools
Online auction
Bid Tools
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
6
6
How it Works:Borrowers are Funded by Multiple Bidders
Fractional interests ease diversification
Fractional interests ease diversification
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
7
How it Works:Bids from “Friends” Help Borrower and Investor
...and provide social pressure that lowers risk
...and provide social pressure that lowers risk
Friends can help borrower get
funded
Friends can help borrower get
funded
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
8
Why Prosper Has Better RatesA Broader Range of Data can be Leveraged on Prosper
Traditional Financial Data
• Credit bureau, income data
Social Graph
• Friends, family, causes (e.g. green businesses)
Empowered Stakeholders
• Vendors, customers can now be your lenders
Individual Loan Level Pricing
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
9
Benefits of Borrowing on Prosper
Simple & Fair Loan Terms Fixed interest rate that will not change No hidden fees No Prepayment Penalty
Attractive Interest Rates Maximum acceptable rate set by the borrower Rates can be bid down by auction Borrower can pass on loan if pricing is unacceptable
Borrowers can leverage repayment history Borrowers with good repayment histories can list for additional
loans Positive repayment history often leads to lower rates
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
9
Proprietary & Confidential – Prosper Marketplace, Inc. © 2009
10
A Small Business Success Story
Lara Miller was a fashion designer looking to start a business designing and manufacturing a line of dresses
Lara was unable to secure a bank loan at any rate, and turned to Prosper in August of 2006
To date Lara has taken three Prosper loans totaling $23,000 at an average rate of 11.1%
The original loan for $3,000 gave her enough to get started and the additional 2 loans have allowed her to grow her business as demand for her designs have grown