Lendingclub Corporation · NYSE:LC
Lendingclub — Money20/20 (October 2016)
30 slides from Lendingclub's conference presentation, Oct 25, 2016
Slide 1: Scott Sanborn, President & CEO
Scott Sanborn, President & CEO
Slide 2: Safe Harbor
Safe Harbor Some of the statements in this presentation are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," “outlook,” "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not a
Slide 3: P2P Loans Gaining Traction. Lending Club Goes Nationwide
P2P Loans Gaining Traction. Lending Club Goes Nationwide Posted Dec. 13, 2007 TechCrunch 2007
Slide 4: Material questions loomed…
Scalability Credit Performance Regulatory Risk Bank Competition Material questions loomed…
Slide 5: #1 provider: 24% of US personal loans
Lending Club Other Online $0 B $5 B $10 B $15 B $20 B 2010 2011 2012 2013 2014 2015 Source: TransUnion, Lending Club analysis. Chart represents marketplace lending as a percentage of U.S. personal loans (24% in 2015). Bar graph reflects Lending Club as a portion of personal loans facilitated through
Slide 6: Borrowers: 35% lower rates, $1,000 saved
35% lower $1,000 saved Based on approximated $1,030 avg. annual savings, calculated based on approximated $13,500 avg. loan size (as of December 31, 2015, standard program borrowers only), and 760 basis points average savings. Average savings based on responses from 12,728 borrowers in a survey of 6
Slide 7: Investors: 5-8% average returns, $2.1B interest
5-8% average returns $2.1B interest Based on adjusted net annualized return (Adjusted NAR) of current investors with a portfolio containing 100+ Notes, none of which have been purchased or sold on the Folio Investing Note Trading Platform¶, where the portfolio concentration is one percent or less (i
Slide 8: Marketplace lending impact: SoFi, OnDeck, Lending Club
Sources: Lending Club, SoFi, OnDeck, Bloomberg. 1 Based on BISG analysis of Lending Club business loan borrowers, benchmarked to 14.6% representation of minority-owned businesses in traditional retail bank loans, as per Usman Ahmed, Thorsten Beck, Christine McDaniel, and Simon Schropp, “Filling the
Slide 9: Banks and online lenders landscape
WN “- JPMorganChase © REGIONS citi | | | OnDeck> AVANT LendingClub
Slide 10: Regulation Downturn Readiness
Regulation Downturn Readiness
Slide 11: Consumers expect more from their technology... and their banks.
Consumers expect more from their technology... and their banks.
Slide 12: Video, rental, music, travel, banking?
VIDEO RENTAL MUSIC TRAVEL BANKING ?
Slide 13: U.S. consumer credit by category
13 $1.1T Unsecured Consumer Credit $0.3T Small Business $1.2T Auto Loans $1.3T Student Loans $8.6T Mortgages Source: Federal Reserve
Slide 14: 14
14
Slide 15: Americans finance a car every year
reet Journal, Americans finance a car every year. January 2016 and Auto Remarketing, February 2016
Slide 16: $1 trillion auto debt, 80% via dealerships
16 $1,000,000,000,000 80% Of the $1 trillion owed, 80% of the debt comes from cars purchased through a dealership.2 6.78% Base APR 1-3% Dealer Markup3 1. New York Fed; Equifax. 2. Center for Responsible Lending: The State of Lending in America & Its Impact on U.S. Households; McKinsey innovation rep
Slide 17: $1 trillion auto debt, 8.78% U.S. average APR
17 $1,000,000,000,000 80% Of the $1 trillion owed, 80% of the debt comes from cars purchased through a dealership.2 6.78% Base APR 1-3% Dealer Markup3 1. New York Fed; Equifax. 2. Center for Responsible Lending: The State of Lending in America & Its Impact on U.S. Households; McKinsey innovation rep
Slide 18: Slide 18
Slide 19: 1-3% lower APR on new auto loans
19 1-3% Lower APR on new auto loans through Lending Club.1 Real Savings A 2.5% interest rate reduction could translate to $1,350 in savings on the life of the loan.1 1. Based on analysis of 300,000 consumer accounts from Q4 2012 to Q3 2013 using credit bureau data. Assumes the consumer refinances wi
Slide 20: 40+ fields: VIN number, current loan balance
40+ Fields VIN number Current loan balance And more!
Slide 21: Apply in under a minute with no impact to credit score
21 Takes less than 1 minute to apply, with no impact to your credit score.1 2 3 Instantly receive offers you qualify for and see the savings. Complete the process online from virtually anywhere. No application fees, origination fees, or prepayment penalties.4 Lender 1 Lender 2
Slide 22: For investors: Stable Secured Asset
22 For investors Stable Secured Asset
Slide 23: S&P/Experian default indices
23 S&P U.S. Auto Loan ABS Tracker: October 2013, http://morningconsult.com/opinions/columns-subprime-auto-loans/. Historical performance is not a guarantee of future results. Actual results may differ materially from historical data. 0% 1% 2% 3% 4% 5% 6% Apr-2006 Feb-2007 Dec-2007 Oct-2008 Aug-2009
Slide 24: Access to an In-Demand Asset Class
24 For investors Stable Secured Asset Access to an In-Demand Asset Class
Slide 25: Consumer, auto and small business credit
25 Consumer Credit ? ? ? Auto Small Business Credit 3% Average estimated return
Slide 26: Huge Opportunity
26 For investors Huge Opportunity Stable Secured Asset Access to an In-Demand Asset Class
Slide 27: $1 Trillion outstanding, $283 Billion addressable market
$1Trillion (total outstanding) $283 Billion Immediately addressable market Consumers refinanced more than $40 billion last year, but we estimate that nearly twice as many could have refinanced if the process had been easier.
Slide 28: Value. Ease. Fairness.
28 Value. Ease. Fairness. Personal Loans Patient Finance Small Business Auto All loans originated and issued by WebBank, member FDIC.
Slide 29: Marketplace Lending is just getting started.
Marketplace Lending is just getting started. 29
Slide 30: LendingClub
LendingClub