28/11/2016 1 Disrupting the SME Lending Market Aris Allegos CEO & Co-founder, Moula Small Business Lending Requirements for collateral to be held against SME loans can result in, allocative inefficiencies where loans are made to businesses with the best collateral, rather than those that are the best business prospects. Reserve Bank of Australia • Funding the growth of a SME’s business is a challenging and lengthy process which has been dependent on manual underwriting • During 2015, $14.3 and $41.8 billion of new credit was approved with loan principal less than $100,000 and $500,000, respectively. BUSINESS LENDING, 2015 1. Financial System Inquiry Interim Report, July 2014 2. Reserve Bank of Australia, “Bank Lending to Business – New Credit Approvals by Size and by Purpose – D7.4”, Mar 2016
7
Embed
Disrupting the SME Lending Market · Small Business Lending • More than 1.5 million SMEs access business lending, with a large proportion relying of borrowing less than $100,000
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
28/11/2016
1
Disrupting the SME Lending Market
Aris AllegosCEO & Co-founder, Moula
Small Business Lending
Requirements for collateral to
be held against SME loans
can result in, allocative
inefficiencies where loans are
made to businesses with the
best collateral, rather than
those that are the best
business prospects.
Reserve Bank of Australia
• Funding the growth of a SME’s
business is a challenging and lengthy
process which has been dependent on
manual underwriting
• During 2015, $14.3 and $41.8 billion of
new credit was approved with loan
principal less than $100,000 and
$500,000, respectively.
BUSINESS LENDING, 2015
1. Financial System Inquiry Interim Report, July 2014
2. Reserve Bank of Australia, “Bank Lending to Business – New Credit Approvals by Size and by Purpose – D7.4”, Mar 2016
28/11/2016
2
Small Business Lending
• More than 1.5 million SMEs access business lending, with a large
proportion relying of borrowing less than $100,000
• Both Australia and New Zealand lead the world with the adoption of cloud
accounting, exceeding 40% penetration
• The growth in cloud based accounting solutions has enabled Moula to
develop an innovative and unique underwriting model
Discussion Sources
Accounting DataBest measure of serviceability,
indebtedness and assurance
Transaction DataSecondary measure of serviceability,
limited relevance to indebtedness
Bureau DataLimited relevance to business risk and
poor gauge of creditworthiness
Business DataRisk assessment based on firm size, age,
industry, geography, etc
Other (e.g. Social)Limited relevance, however, used
holistically can be a measure of risk
More
Pre
dic
tive
Less P
redic
tive
Source: HBS Working Paper Series, “The State of Small Business Lending: Credit Access During the Recovery and How Technology May Change the Game”, Jul
2014
28/11/2016
3
Our Background
Founded July 2013
Strategic Partners
Headquarters Melbourne, Australia
Technology Proprietary, wholly owned and developed
Funding Institutional
Innovative Proprietary platform, built to accommodate accounting data sources
Responsible Driven by ethical lending standards: transparent pricing with no hidden fees
Experienced Founding team with extensive expertise in banking, accounting and technology
VALUES
28/11/2016
4
Application Process
Business &
Personal
Information
STEP
ONE
Tell Us Where to
Deposit The Funds
STEP
THREE
Link Your Data
STEP
TWO
Moula will push
journal entries to the
general ledger,
accounting for the life
of the loan
Products
Product Term Loan (Unsecured) Line of Credit (Unsecured)