Internet Finance in Latin...
Transcript of Internet Finance in Latin...
Internet Finance in Latin America Getting high net yields thru Marketplace Lending
Alejandro Cosentino
Founder & CEO
Lendit China Shanghai
June 17, 20161
2
AFTER DOMINATED THE MARKETS FOR YEARS
Banks Finally Have Competition in Latin America
• Intermediation is no longer necessary
• Technology made it possible, cheaper
• Sharing Economy changed landscape
• Authorities support FinTech trend
• Millennials are the driver for FinTech
3
Colombia
Population: 48 M GDP: 378 B Ratio: 45% Brazil
Population: 200 M GDP: 2.4 T Ratio: 65%
Mexico
Population: 122 M GDP: 1.26 T Ratio: 26 %
Peru
Population: 30M GDP: 202B Ratio: 26%
Chile
Population: 18 M GDP: 227 B Ratio: 70%
Argentina
Population: 40 M GDP: 450 B Ratio: 14%
• Population: 625+ Million
• GDP: US$ 5 Trillion
• Debt Market: US$ 2.2 Trillion
PAN-REGIONAL OPPORTUNITY
Why Latin American Emerging Markets Are Attractive?
Low penetration of loans vs. GDP
4
Deposit & Lending interest rates % call for disruption
Bank spreads are one of the biggest around the world
• LatAm has low inflation rates
• FX under control
• Banks dominate the space
• Spread are huge (30%-100%)
• Low penetration credit vs. GDP
• High Net Yields in US$
Colombia
Population: 48 M GDP: 378 B Ratio: 45% Brazil
Population: 200 M GDP: 2.4 T Ratio: 65%
Mexico
Population: 122 M GDP: 1.26 T Ratio: 26 %
Peru
Population: 30M GDP: 202B Ratio: 26%
Chile
Population: 18 M GDP: 227 B Ratio: 70%
Argentina
Population: 40 M GDP: 450 B Ratio: 14%
5
Source: Liberum
▪ GEN Y earns its salary ▪ 70% are 24+ years old
▪ 25+ hours/month online ▪ 90% use social nets
▪ 97% use the Internet for pre-purchase research
IT’S A NEW MARKET BEHAVE DIFFERENT BETTER DECISIONS
DESCRIPTION
IMPACTS
LatAm Market Size internet base 320 Million
LATIN AMERICAN INTERNET DYNAMICS
Mirrors and Even Skews Ahead of Global Trends
Source: www.internetworldstats.com, as of June 30th, 2015
comScore Media Metrix, June 2015
6
Market Conditions Ready for Institutional Lenders Infrastructure + Data
• Credit Bureau Information available
• State-Of-Art Acquisition Tools • Diversified Acquisition Channels
• Online Acquisition works 24/7
• e-transactions and ACH add efficiencies
Colombia Brazil
Mexico
Peru
Chile
Argentina
Huge Leap in P2P Awareness Since 2012
7
Source: Google Trends
“Peer to Peer Lending” Google Trend “Lending Club - USA” Google Trend “CreditEase - CHINA” Google Trend
*** “AFLUENTA - AR” Google Trends ***“Rate Setter - UK” Google Trends“FundingCircle - UK” Google Trends
KNOWLEDGE LEADS TO ADOPTION BY CONSUMERS AND SME’S
2012 2016 2012 2016 2012 2016
2012 2016 2012 2016 2012 2016
8
• First & only Pan-Regional crowdlending network
• FinTech = better loans & better yields
• Solid Technology Platform & Experienced Team
• Expecting to complete blueprint by 2018
• First Class Shareholders
LATINOS ARE EARLY ADOPTERS OF WORLDWIDE TRENDS
Afluenta Brings Marketplace Lending to LatAm
2012
3Q 2016
20152017
2017
2018
9
AFLUENTA PAN-REGIONAL
First LatAm P2P working as USA or EU MPL
Positive Net Yield across different lenders clusters
Consistent and solid loan volume growth Growing average loans size
Better yield vs. Bank products Increased # of lenders per loan
More information on: www.afluenta.com/estadisticas
10
Afluenta Operates Full Cycle Automated Processes
ID customersCredit Assessment & AML
Fractional LoansOnline Auction
Secondary Market
Servicing Loans
CROWDLENDING REMOVES THE MIDDLEMAN
11
LIFE INSURANCE
Afluenta earns 0.115% on life insurance credit balance
LENDERS
Pay 2% per each loan
collected on monthly payment
SECONDARY MARKET Sellers and buyers pay 1%
for securitization
BORROWERS
Pay 2.5 - 6%
per credited loan
FEE STRUCTURE
Afluenta Collects from Both Borrowers and Lenders
12
10 KPIs about AfluentaMODEL ALREADY VALIDATED
1. 5.0 M unique visitors (3.5 M last 12 months)
2. 270,000 community members 3. Loans ups to US$ 10K
4. Average loan data: US$ 2,5K @36 month
5. Originating US$ 1M a month
6. 100% retail investors
7. 95% of apps answered in 15 seconds.
8. Avg net yield annual 20% in USD 9. Delinquency+90 days: 4.5%
10.Customer Satisfaction: 95%
13
Thank you!
Av. Dorrego 1789 5to. piso Oficina 503
(1414) Ciudad Autónoma de Buenos Aires
Teléfono +54 (11) 5219 6655
[email protected] @afluenta
facebook.com/afluenta
www.afluenta.com