Overview November 2017

Transcription

1 Overview November 2017

2 There is a Market Failure on MainStreet 8,000 DECLINED Requests for credit every business day 1 How can we solve this failure? Banks need an efficient and effective solution that is also CRA compliant. $52 Credit gap for loans BILLION to Main Street 2 OF 2.2 MILLION SMALL BUSINESSES In low-wealth communities that seek each credit year, most struggle 3 CDFIs need solutions that expand product sets and reduce (or rationalize) operating costs. Investors (and Philanthropy) need investment vehicles that permit investment at scale with reasonable return expectations. Business Owners need guidance, choices, and support on the path to capital. 1 US Treasury, June Micro Capital Task Force 3 AEO, The Big Picture: A Larger View of the Small Business Market 4

3 myway to Credit Connects Small Businesses to CDFIs and Path-to-Capital Services 1 Bank refers small business to myway to Credit myway to Credit is a referral marketplace that addresses the market failure on Main Street by connecting small business owners to business mentors and credit options from trusted community lenders. 2 Small business opts in and submits information 3 Business owner accepts terms and creates account 4 Business owners reviews matches to credit options and business mentors 5 Business owner selects matches

4 myway to Credit: We re Reinventing 'Yes' This solution works for everyone by enabling banks to connect small business owners to trusted lenders and business mentors. Traditional lenders funnel declined customers to community lenders who are likely to meet their needs. Easy for business owners to use because it s a single source for multiple referrals. Platform is compliant with industry standards and regulations. Easy to implement and integrate into existing operations. Small businesses are connected with lending and credit products tailored to their needs.

5 Community Lenders Identify small businesses that can benefit from lending solutions Acquire more customers at a low cost myway to Credit is an ecosystem focused on the success of the business owner. Bank Referral Partners Offer another path to yes by inviting small business owners to myway to Credit Retain relationships with small business owners without risk to reputation or risk of losses Small Business Owners Choose products and services that are the best fit for their businesses More small business owners have a shot at success

6 How Do Community Lenders Benefit? 03. Advanced data aggregation and reporting capabilities 01. Low cost way to acquire customers 04. Easy-to-adopt technology with minimum changes to daily operation 02. Qualifying leads based on customer segments and product offerings 05. Offering API integration options for greater efficiency

7 How Do Banks Benefit? 01. Retain relationships with small businesses without risk to reputation or risk of losses 03. Track customers as they gain financial strength so that you can serve them in the future CRA 02. Confidently refer customers to a vetted network of community lenders 04. Meet your bank's CRA goals

8 Our Vision and Path October 2015: AEO wins CDFI Fund Innovation Challenge October 2016: myway to Credit receives $1.7M investment from JPMC Foundation November 2017: JP Morgan Chase begins referring its small business banking customers End State: Industry Shared Utility August 2016: Pilot launched with 7 CDFIs and referrals from OnDeck March 2017: Pilot launched with Woodforest National Bank

9 Join the Marketplace How can CDFIs participate? Certified CDFI Premium AEO member in the TILT Forward Network Report performance data to Aeris CONNECT mywaytocredit.com Tammy Halevy Lily Huang Interested to know more? Visit bit.ly/signupcue 13

10 Appendix 3

11 myway to Credit Connects Small Businesses to CDFIs and Path-to-Capital Services 1 Bank refers small business to myway to Credit 2 Small business opts in and submits information

12 myway to Credit Connects Small Businesses to CDFIs and Path-to-Capital Services 3 Customer accepts terms & creates their account 4 Customer views CDFI and mentor matches

13 myway to Credit Connects Small Businesses to CDFIs and Path-to-Capital Services 5Customer selects lender(s)/mentors to engage with