Business intelligence 850 Group Project

Leveraging Business Intelligence in P2P Lending

By

Brad MooneyDenil PatelShitanshu GoelXingye Shao

A Lean Strategy

1. Collecting fee from borrowers and investors.

2. Lean cost structure to provide competitive services to customers

3. No physical branches and kept functions electronic and highly automated.

“Banks are inefficient. It’s just not profitable for them to make a $10,000 loan.”

Balanced Scorecard for XYZ Club1. Financial Perspective2. Learning & Growth

Perspective3. Internal Processes

Perspective4. Customer

Perspective

The Process of making connections1.Must have minimum FICO score and debt-to-income ratio below 35%

2.Used various fraud detection systems for screening borrowers.

3.Then the loan request is kept on the website for investors to evaluate(14 days).

4.The listing includes intended use of proceeds, FICO Score, Home Ownership status, income, debt-to-income ratio, and employment.

5.Investors relied upon information provided by borrower members as well as data provided by XYZ Club from data services such as credit reporting agencies.

Learning and Growth1. XYZ Club was incorporated in October 2006 and began

operations in May 2007 as a service on Facebook

2. March 2009, the company introduced the first Self-Directed Individual Retirement Account for investments in P2P loans.

3. May 31, 2013, XYZ Club had five funds with a total of $488 million

4. Future Growth -- Institutional investors

Turning Objectives into KPI’sFinancial objectives: Gross Profit Margin, Customer Profitability, and

Default rate

Learning and growth objectives: Employee training, IT Costs, and Employee Satisfaction

Internal Process objectives: Adherence to policy, Mitigating risk, and Data management

Customer objectives: Enhanced customer service, Leveraging IT Capabilities and Market Share

Club’s BI1.SAS

a. Credit Risk analysis, Market rates assessments, Customer intelligence

b. SAS Enterprise GRC & SAS Enterprise Risk Management components

2.HADOOP

a. HADOOP Distributed file system (HDFS)b. MapReduce

BI team at XYZ Club

Strength

Presence of strong leadership

Weakness

Traditional BI is scalable but not agile

“BI projects demand different types of roles, more than traditional development projects, and we need to be very mindful of putting the right people in the right roles”

Areas for Improvement

Infrastructure:Organizational Culture

Structures:Degree of centralization

Processes:Building org. SupportEducationHybrid Bus/IT Teams

Overall Recommendation

Thank you