Data Science. Credit Scoring. Digital Finance TOP-2 TOP-50 BEST - - PowerPoint PPT Presentation
Data Science. Credit Scoring. Digital Finance TOP-2 TOP-50 BEST ALTERNATIVE EUROPE TOP 100: INNOVATION BEST LENDING FASTEST GROWING FINTECH FASTEST GROWING FINANCE COMPANY LEADER WINNER FINANCE PLATFORM COMPANY IN EUROPE COMPANY IN
INNOVATION LEADER BIG INNOVATION AWARD 2017 BEST LENDING PLATFORM BENZINGA GLOBAL FINTECH AWARDS 2017 TOP-2 FASTEST GROWING FINTECH COMPANY IN EUROPE FINANCIAL TIMES April 2018 TOP-50 FASTEST GROWING COMPANY IN EUROPE
March 2018 BEST ALTERNATIVE FINANCE COMPANY EUROPEAN FINTECH PUBLIC AWARDS 2016 EUROPE TOP 100: WINNER «FINANCE» RED HERRING 2016
1 DATA TA-DRIVE IVEN
Fully in-house IT & risk management system
2 3 4 Build an international data-driven financial institution to provide convenient financial services PRODUCT CT
Tailored to meet consumer needs driving high client retention
RISK SK C CONTRO ROL
Compliance with all regulatory requirements across the group
INTERN RNATIONAL E EXPERT RTISE SE
Scalable business model
3
LEADING INTERNATIONAL FINTECH COMPANY
labilit lity New businesses are launched less than in 3 months
ent r t reten tenti tion Loyal recurring customers drive bottom line results
4
92 197 421 717 1 137 1 624 2 199 62 122 232 366 558 803 1 112 2016 2017 2018F 2019F 2020F 2021F 2022F Issuance ($m) Revenue ($m)
Sep-12 Feb-13 Jul-13 Dec-13 May-14 Oct-14 Mar-15 Aug-15 Jan-16 Jun-16 Nov-16 Apr-17 Sep-17 Feb-18
LEADING INTERNATIONAL FINTECH COMPANY
Innovative Digital Finance (ID Finance) Global expansion and unique registered clients Financial highlights 5.3 .3m Missi ssion
institution to provide financial services to the underbanked
Key f y fact cts
Investm tment t highl hlight hts
within 3 months
at 221% CAGR Q1 2014 – Q1 2018
generate repeat business.
$4.4 cash net income from $1 invested into CAC
expected in 2021+
scoring model and in-house IT platform
$6.5
.5m
$18
18m
$39
39m
$66
66m
$107
107m
$152
152m
Profit after tax
Current presence Strategic focus $5.0
.0m
RU 2012 KZ 2014 GE 2014 ES 2015 (HQ) PL 2015 BR 2016 MX 2017 BL 2012 (R&D hub) CO 2018
5
RAPID GROWTH DUE TO EFFECTIVE SCALING STRATEGY
$0.2m
Loan issuance dynamics
$1.7m
$14m
Professiona nal a and m motiva vated global a l and nd l loca cal l teams Centralise lised I IT a and r risk sk- infrastruct ructure Mo Monit itorin ing o
ind ndic icators i in n real t l tim ime
2012 2013 2014 2015 2016
Launch and risk optimisation CIS expansion European expansion LATAM expansion
$3.5m
pain
$6.0m
akhstan an
il, Mexic ico
AmmoPay and Solva
Major f factors f for effectiv ive scalin ing
2017
6
Low risk Medium risk High risk
OUR PRODUCTS TARGET UNDERBANKED CUSTOMERS
Banks’ maximum margin
Low margin High margin
Minimum margin given borrower risk Banks’ target lending market
Target lending market
7
ID FINANCE CONTROLS THE ENTIRE CUSTOMER JOURNEY THROUGH HIGHLY EFFICIENT RISK MANAGEMENT
Client acquisition Scoring and fraud-analysis Client management Pre-collections Collections Legal support Fraud prevention 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
CLIENT LIFE CYCLE Risk management present at every step of client life cycle ID Finance taps into global and local pools of information
8
GLOBAL TEAM OF SPECIALISED FINANCIAL SERVICES EXPERTS
Co-founder, Chief Executive Officer (CEO)
15+ 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)
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)
Boris Batin, PhD Alexander Dunaev, CFA Javier Lopez
19+ years of experience in financial services and finance Previous experience in General Electric and Standard Chartered Bank Graduated from ESADE University (Barcelona, Spain) with a degree of Master in Business Administration
Chief Risk Officer (CRO)
Ekaterina Kazak
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
Chief Marketing Officer (CMO)
Alessandro Ceschel
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
Chief Technical Officer (CTO)
Pavel Shareyko
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
9
2017 FY 2016 FY Conversion rates for 2017 Historical data
We Websit ite vi visito tors
26m 6m 21m 1m
Conversion to applications
Conversion rate to applications increased by 1pp (Y-o-Y)
Applic icat ation ions
2.5m 1. 1.8m
Approval rate
Approval rate has increased by 7pp (Y-o-Y)
Numb mber
loan
issu ssued
800 00k 46 460k
Retention rate
Conversion rate from visits to loans issued has reached 3.1% (+1pp Y-o-Y)
Amount unt o
loans i s issu ssued
$19 197m $9 $92m
Loan marketing cost*
Marketing cost has decreased by 1.8pp (Y-o-Y)
HIGHLY EFFECTIVE CLIENT ACQUISITION AND RETENTION STRATEGY
* Marketing costs divided by amount issued
33% 90% 9% 5%
0,0 2,0 4,0 6,0 8,0 10,0 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Website visitors, #m
0,0 0,2 0,4 0,6 0,8 1,0 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Applications, #m
100 200 300 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Number of loans issued, #k
20 40 60 80 Q1 2014 Q3 2014 Q1 2015 Q3 2015 Q1 2016 Q3 2016 Q1 2017 Q3 2017
Amount of loans issued, $m
10
3% 3% 6% 6% 24% 24% 18% 18% 49% 49% 2% 9% 13% 11% 22% 43% 13% 13% 10% 10% 77% 77%
1, 1,0 3, 3,3 5, 5,8 11, 11,8 22, 22,8 39, 39,0 57, 57,4 77, 77,3 96, 96,1
20 40 60 80 100 120
1H 2014 2H 2014 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 Q1 2018
SIGNIFICANT PORTFOLIO DIVERSIFICATION ACHIEVED IN LINE WITH GROUP STRATEGY
$3.3m Russia Kazakhstan Georgia Spain Poland Brazil Mexico
December 2014 December 2016 March 2018 Value of loans outstanding (net of reserves), by country ($m) Value of loans outstanding (net of reserves), by country ($m)
$39m $96m
11
ID FINANCE SIGNIFICANTLY REDUCED NPL WHILST ACHIEVING RAPID GROWTH
$16.5m $193m $176m
* NPL = FPR 90d+
43,3% 23,5% 14,6% 12,1% 9,7% 10,1% 11,2% 10,6% 10,1% 8,8% 7,2%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 Q1 2018
$417m $386m
$30m
50 100 150 200 250 300 350 400 450
Loans issued since launch NPL as of Mar-18 Repaid and performing loans Mar-18
Historical NPL* rates Historical group level of NPL*
Significant portfolio quality improvement
12
STRATEGY FOCUSED ON ENTRY INTO SELECTED HIGH GROWTH MARKETS
Launc nch Popula lation* * (m) m) Inter ernet et users* (m) m) Mobile ile users* s* (m)
Russia 2012 144 103 103 Kazakhstan 2014 18 10 15 Georgia 2014 4 2 3 Spain 2015 46 37 40 Poland 2015 38 27 27 Brazil 2016 208 123 130 Mexico 2017 127 73 86 Colombia 2018 48 27 33 USA 2019 321 239 258 Peru 2019 31 13 19 Tota
985 85 653 53 714 14
Current presence Strategic focus
* 2015 WorldBank, UNdata, eMarketer; 2016 Statista, Budde Country of presence ID Finance
3% 23% 33% 41%
Share of European and LatAm
59% 59%
1% 20% 79%
100%
Share of European and LatAm
0% 0%
Share of European and LatAm
21% 21%
E 2021 FY 2017 FY 2013 FY Geographic diversification 2013-2021. Loans issued
Russia and CIS Americas Europe Other region (Asia/India…)
13
FOCUS SHIFTING TOWARDS LONGER-TERM PRODUCTS AND MORE AFFORDABLE LOANS
Loan volume Market size 81% 19%
Share of long-term loans
81% 81%
43% 57% 100%
Share of long-term loans 0%
0%
Share of long-term loans
43% 43%
Focus on prime users
Client profile
Larger market capacity Larger volume Lower risk
NPL level
Strategy focus
Loan term
Longer term
Competitive advantage
Lower rates
Single payment loans Instalment loans
E 2021 FY 2017 FY 2013 FY Product diversification 2013-2021. Loans issued
14
50% 34% 7% 9% RUB 50% USD 27% EUR 18% GEL 5%
702 575 700 961 516 507 421 568 515 12 200 400 600 800 1 000 1 200
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
FUNDING LATAM AND LONGER-TERM PRODUCT EXPANSION
Funding highlights Debt portfolio (Q1 2018). Currency breakdown Debt repayment schedule ($m) Debt portfolio (Q1 2018). Source breakdown
Debt portfolio is well-balanced in terms of maturity. The latest scheduled payment is in Q1 2021 Debt portfolio is well- diversified in terms of currency
$95.4
.4m
$95.4
.4m
Credit funds Mintos Individual investors Bonds
risk sk is mitigated by introducing local funding:
idit ity r risk is mitigated by introducing different sources of funding:
license
drivers o rs of f fundi ding c cost d decre rease ase:
15
15
Co-founder, COO @ ID Finance
Alexander.dunaev@idfinance.com
Co-founder, CEO @ ID Finance
Boris.batin@idfinance.com