Data Science. Credit Scoring. Digital Finance

Transcription

1 Data Science. Credit Scoring. Digital Finance

2 Group overview LEADING INTERNATIONAL FINTECH COMPANY Innovative Digital Finance (ID Finance) Global expansion and unique registered clients Key facts Founded: 2012 Employees: 400+ Geographic presence: 8 countries Products: consumer finance provider MX 2017 BR 2016 PL 2015 SP 2015 GE m KZ 2014 BL 2012 Mission Build an international data-driven financial institution to provide financial services to the underbanked RU 2012 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Scalable model: launch in new geography within 3 months Financial highlights Exceptional traction: net loan portfolio grew at a 279% CAGR H H $56m Investment highlights High client loyalty: 90% of new clients generate repeat business. High Return on Marketing Investment: $4.4 cash net income from $1 invested into CAC High ROAE: 60% in H High profitability: $16m of net profit expected in 2017 $3m -$1m $7m $16m $36m Technology and data driven: Proprietary scoring model and in-house IT platform F 2018F 2019F Issuance ($m) Revenue ($m) Profit after tax 2

3 Our history RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY Loan issuance dynamics E $0.2m $1.7 m $14m $36m $92m $220m Launch and risk optimisation CIS expansion European expansion LATAM expansion Russia Georgia Spain Brazil, Mexico Scoring and risk-management Kazakhstan Poland New products: Round A: $3.5m Installment loans Round B: $6.0m AmmoPay and Solva Major factors for effective scaling Professional and motivated global and local teams Centralised IT and riskinfrastructure Monitoring of key indicators in real time 3

4 Strong management team GLOBAL TEAM OF SPECIALISED FINANCIAL SERVICES EXPERTS Boris Batin, PhD Alexander Dunaev, CFA David del Pozo Calleja Co-founder, Chief Executive Officer (CEO) 14 years of work experience in banking and finance Previously held various positions at Deutsche Bank, Renaissance Capital and RBS within debt capital markets in London and Moscow Graduated from Cambridge University with a degree of Master in Economics Co-founder, Chief Operational Officer (COO) Over 10 years of experience in banking and finance Previous experience: Deutsche Bank, London Holds Chartered Financial Analyst degree Graduated from Imperial College with a degree of Master in Finance Chief Financial Officer (CFO) 26+ years of experience in managing investments and finance departments Previous experience in Inversis Bank and ING Direct Bank (CFO) Graduated from Complutense University (Madrid) in Economics Ekaterina Kazak Chief Risk Officer (CRO) 10 years of work experience in risk management Previously worked as Head of Russia & CIS Experian Analytics Graduated from Moscow State University of Economics, Statistics and Informatics Alessandro Ceschel Chief Marketing Officer (CMO) 11 years of professional experience in Digital Marketing and international IT Projects Previously successfully developed online internet businesses B2C, B2B and P2P in Spain Ulabox, Logismarket, Socialcar, worked in MNC (Nestlé) and in early stage startups Graduated from Padova University with a Master in Industrial Engineering and Business Administration Pavel Shareyko Chief Technical Officer (CTO) 13 years of experience in software development, including development of high-load applications and financial systems Previous experience: Lead developer at Itransition Graduated from Belorussian State University 4

5 Product Portfolio OUR PRODUCTS TARGET UNDERBANKED CUSTOMERS Low margin High margin Banks target lending market Target lending market Minimum margin given borrower risk Banks maximum margin Low risk Medium risk High risk 5

6 Highly efficient IT & risk-management system ID FINANCE CONTROLS THE ENTIRE CUSTOMER JOURNEY THROUGH HIGHLY EFFICIENT RISK MANAGEMENT Risk management present at every step of client life cycle ID Finance taps into global and local pools of information Client acquisition Fraud prevention Scoring and fraud-analysis Legal support Client management CLIENT LIFE CYCLE Collections Pre-collections 10, % 70% 90% Data points are collected and analyzed in real time Applications are processed automatically Of the debt recovery achieved in-house through efficient client management system Of clients become loyal customers through effective CRM system 6

7 Client acquisition funnel remains robust HIGHLY EFFECTIVE CLIENT ACQUISITION AND RETENTION STRATEGY H H Conversion rates For H Historical data Website visitors 9m 11m 10% Conversion to applications Website visitors, #m 10,8 8,8 4,5 1,6 0,2 H H H H H H H H H Applications 0.9m 1.1m 31% Approval rate 1,5 1,0 0,5 0,0 Applications, #m 1,08 0,86 0,49 0,14 0,02 H H H H H H H H H Number of loans issued 186k 338k 90% Retention rate Number of loans issued, #k ,6 16 H H H H H H H H H Amount of loans issued $34m $80m 4.3% Loan marketing cost* Amount of loans issued, $m $80 $34 $14 $0,4 $3,6 H H H H H H H H H * Marketing costs divided by amount issued 7

8 Client acquisition channels COST EFFECTIVE ACQUISITION VIA OPTIMAL MIX OF ACQUISITION CHANNELS Highlights Well-diversified and balanced client acquisition channels MoneyMan search requests (#k) Focus on organic traffic growth and increasing the loyalty rate in all countries of presence Strong brand recognition improvement $1 issued to a new client generates $6+ of loans issued per client life % Average H-o-H growth of search requests x k Return on $1 invested in CAC Brand search requests per month H H H H H Loans acquisition channels as of H Amount issued ($k) and marketing cost (%) 25% 9% Paid traffic $80 15% 13% 11% 29% SEO, SMM, referrals Affiliates ,3% 9% 7% 5% 38% Direct marketing % 1% 0 H H H H H H H H H % 8

9 Portfolio quality ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH Net outstanding portfolio (August 2017) Revenue structure (August 2017) 9% 5% 1% 9% 4% 3% 16% Net portfolio $66m 42% 8% Revenue $11.2m 51% 17% 25% Russia Kazakhstan Georgia Spain Poland Brazil Historical group NPL* rates Historical group level of NPLs* 50% 45% 40% 43,4% $300m $250m $20,5m 35% 30% 25% 20% 15% 10% 5% 0% 23,5% $16.5m $258m 14,6% $100m 12,1% $193m 9,8% 10,1% 11,2% 10,6% 9,2% 7,9% $176m H H H H H H H H H Aug-17 $200m $150m $50m $0m $237m Loans issued since launch NPL as of Aug-17 Repaid and performing loans Aug-17 * Loans with payments overdue 90+ days are considered non-performing loans (NPLs) 9

10 Geographical expansion STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS Launch Population (m) Internet users (m) Mobile users (m) Russia Kazakhstan Georgia Spain Poland Brazil Mexico Colombia Q USA Peru Total Current presence Strategic focus Geographic diversification Loans issued Loans issued. August 2017 Loans issued. 2019F 2 Share of European and LatAm 0% Share of European and LatAm 25% 23% 35% Share of European and LatAm 65% 30% 100,0% 75% 35% * 2015 WorldBank, UNdata, emarketer; 2016 Statista, Budde Russia and CIS Europe Americas 10

11 Product diversification FOCUS SHIFTING TOWARDS LONGER-TERM PRODUCTS AND MORE AFFORDABLE LOANS Strategy focus Focus on prime users Larger market capacity Longer term Client profile Market size Loan term Larger volume Lower risk % Lower rates Loan volume NPL level Competitive advantage Product diversification Loan issued Loan issued. August 2017 Loan issued. 2019F 20% Share of long-term loans 0% 56% Share of long-term loans 44% 44% Share of long-term loans 80% 100,0% 80% Single pay loans Installment & POS loans 11

12 Boris Batin Co-founder, ID Finance Boris.batin@idfinance.com Thank you for your attention! Alexander Dunaev Co-founder, ID Finance Alexander.dunaev@idfinance.com 12