GET SOCIAL WITH US. #vision2016. Tweet, follow, share throughout the session.

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1 GET SOCIAL WITH US Tweet, follow, share throughout the session Experian Information Solutions, Inc. All rights reserved. 1

2 The state of the union for online marketplace lending Experian and the marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior written permission of Experian.

3 Introducing: Peter Renton Lend Academy Natasha Madan Experian Gavin Harding Experian

4 Industry trends (consumer loans) Natasha Madan 4

5 VantageScore 3.0 at origination Average US VantageScore 3.0: Higher than consumers who originate unsecured / secured loans Secured Personal Loans Unsecured Personal Loans OML Loans Q Q Q

6 Risk levels at origination 6 5 Average VantageScore 3.0: 645 Average VantageScore 3.0: 637 Average VantageScore 3.0: % 29% 27% 26% 42% 38% 2 1 Secured Personal Loans Unsecured Personal Loans OML Loans Super Prime Prime Near Prime Subprime Deep Subprime 6

7 Trend View SM segments Consolidator Rate Surfer Revolver Transactor Mixed $$ M1 M2 M1 M2 REVOLVER/ TRANSACTOR Consumer transfers multiple balances to one loan product Consumer balance transfers debt from one product to another Consumer carries a balance from month to month Consumer pays off the entire or majority of the balance every month Consumer exhibits transactor as well as revolver behavior 7

8 Consolidator Rate Surfer Revolver Transactor Mixed Consolidator Rate Surfer Revolver Transactor Mixed Consolidator Rate Surfer Revolver Transactor Mixed Trend View SM segments Secured loans Unsecured loans OML loans Q Q Q

9 -91% to low -81% to % to % to % to -6-41% to -5-31% to -4-21% to - -11% to -2-1% to -1 1% to 1 11% to 2 21% to 31% to 4 41% to 5 51% to 6 61% to 7 71% to 8 81% to 9 91% to high Correlation with revolving balances 16% 14% 12% 1 8% Percentage of consumers with change in revolving balance after OML loan origination Revolving balance went down more than 1 for: 23% consumers 32% Revolving balance went up more than 1 for: 46% consumers 6% 4% 2% 9

10 Comparison of loan performance New originations Dec 2014 Performance for the trades (12 months) Dec 2015 Secured Loans Unsecured loans OML Loans % % % % 8% % 2 1 3% 1% 1% 6% Current % 1% 1% 11% Current % 2% 2% 9% Current

11 Typical OML Borrower post origination OML BORROWER VantageScore 3.0 = % REV UTILIZATION CREDIT ACTIVE CONSUMER *At least 1 open trade or inquiry 31% VantageScore 3.0 = 687 $9.9K REV BALANCES $5.3K BANKCARD NEW BANKCARD INSTALLMENT ACCOUNTS BANKCARD NEW BANKCARD INSTALLMENT 2.1 (Currently 30+ DPD) 0.7 (Currently 30+ DPD) 0.9 (60+) DELINQUENCIES ON ANY ACCOUNT 0.3 (60+) 11

12 Who s a typical OML borrower? OML BORROWER CREDIT ACTIVE CONSUMER Age of Borrower 45 yrs % 21% 43% 2% Age of Borrower 49 yrs % 19% 26% 33% 13% Income $74K % 25% 19% 18% Income $87K % 26% 1 2% 1 5% 12

13 Dynamics and drivers Peter Renton 13

14 Investor perspectives Innovation and partnership Consolidation 14

15 Regulation Customer acquisition Q&A 15

16 For additional information, please contact: Follow us on 16

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