connecting small

business to a world of

lenders

Responsible Lending – Role of marketplace

lenders

February 2017

Vision: solve two big stones

1. SMEs lack sufficient access to credit

(wealth creators of next generation starved of opportunity)

2. Lack of yield means many will outlast their retirement funds

1

solution

2

3

80

50

30

~7

<2 Cash

Rate

Annual

rate %Traditional Invoice Finance

Shadow lenders

Credit Cards

Mortgage equity

Collect / Sell more

Cash

global $2.4T SME funding gap

3

fills gap for yield generating

assets>50% annual growth to 2020

US

UK

China

Australia

4

>8B£

SME

+4B£

| 2006 | 2008 | 2010 | 2012 | 2014 | 2016

Marketplace Lending in

the UK

growthe

Sources: Nesta, Pushing Boundaries, February

2016; Page 38

2014 share of

applications = 0.7%

Source: Altfi

2008 Funding Circle

launches — first SME

focused P2P

5

$360BAU 2015 SME

Finance Market

$110BPotential marketAddressable & white

space

AU is a very attractive marketSME AU Marketplace Lending $11.4B by 2020— Morgan Stanley

$5M

.2015

$11.4B

2020

Source: Oliver WymanSources: Morgan Stanley, RBA, ABS, Bigstone Analysis

GDP CAGR

>2X Australia

6

better loanSimple, Fast, Fair

Today Next 12 months

term 3-24 months 36 months

amount $10k - $250k

timing Demand driven <24 hours for instant

repayment weekly daily, monthly +

security GSA

directors guarantees

eligibility • 9+ months

• turnover >$250k+

• 2+ employee’s

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• Estimate in 30s

• <10 multiple choice

questions to get a real

rate range

• Identify yourself

• Identify your business

• Connect to Xero, or

upload financials

• Prove identity & those

who control entity

• credit models &

workflow platform

allow an informed

credit discussion with

decision maker

• Borrower reviews

funding scenarios

• Selects option &

e-signs contract

• Instant funding or

marketplace listing

3 minutes 30 minutes 24 hours Same day as signed

seamless customer

experiencedata driven insights, human dialog & informed decisions

rate &

register

click to

apply

human

interactionaccept

& fund

8

COMMERCIAL CONFIDENTIAL

9

2016 – the age of ai

ARTIFICIAL INTELLIGENCE

ALTERNATIVE INVESTMENTS

9

Bigstone Credit Index (BCI) is

determined by the following sub-

components of risk

● Business financial condition

● Business reputation and management

quality and the financial position of

directors

● Industry and demographic position

● Additional financial and non-financial

factors that reflect ability to pay

multi-layered risk assessment

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www.bigstone.com.au

Connecting small business

with a world of

lenders

11