Disruptive Innovation: The Rise of Peer to Peer Finance in the UAE - PowerPoint PPT Presentation

Disruptive Innovation: The Rise of Peer ‐ to ‐ Peer Finance in the UAE Presented by: Paul Boots , COO at Beehive

Innovation Markets are in a continuous state of change and companies need to change to keep up and survive. Innovation is when you leap ahead of change.

The Dilemma The Innovator’s Dilemma is the difficult choice an innovator faces when choosing between the option to improve what already exists, or embrace the unknown to disrupt what already exists. improve disrupt

Innovation within Government FOCUS Freezone Property Commodities

Disruptive Innovation Innovation that creates a new market which disrupts an existing established market over a period of time, eventually displacing the established market through the use of new technology . The world’s The world’s most popular largest taxi media owner company owns creates NO NO vehicles content Established Disruptor Market The world’s The world’s largest most valuable accommodation retailer has NO provider owns inventory NO real estate Disruption Area

Disruptive Innovation in the Financial Sector FinTech as a term is a compound of “finance” and “technology”. DONATION REWARDS LENDING EQUITY Returns on the The feeling of Non ‐ monetary principal Ownership stake doing good rewards investment

Peer ‐ to ‐ Peer Finance Peer ‐ to ‐ Peer Finance (P2P) is a form of $1 crowdfunding where finance is raised from a large trillion number of investors without the use of a by 2025 conventional intermediary such as a bank. $9 The P2P industry is over 10 years old and is globally billion in 2014 worth over $9 billion in 2014 and is forecast to deliver $1 trillion by 2025. started in 2005

How P2P Works Business applies P2P platform reviews for finance on the and approves the P2P platform finance request Investors bid to finance business 1 2 3 4 5 6 Finance request is Investors receive Business accepts the 100% funded with the monthly repayments finance request and uses most competitive bids of capital + profit the funds for expansion at the lowest rate

How P2P Disrupts Cost Of Funds 100% 50% 0% Bank P2P Default & Processing Operating Expenses Investor Return

P2P in UAE Beehive is the UAE’s first peer ‐ to ‐ peer financing platform Beehive directly connects established, creditworthy businesses with smart investors to build mutually beneficial partnerships for growth

How is Beehive Innovative P2P Beehive captured a new market by embracing new technologies and adopting new or disruptive business Alternative models. SME Financing Beehive Investments Beehive enhanced tried and tested innovative P2P technology to better fit target market culture. High returns Lower cost Diversified risk Faster processing

Beehive Advantages Investors Businesses • Targeted rates of return above 10% • Business finance from AED 100K to 1M • Manage risk through diversification • Terms up to 3 years • Invest from AED100 • Lower rates ( 30% saving on cost of finance) • Complete control over investments • Finance in days , not months • Option to access money early • No early repayment charges • Support UAE businesses • Simple application process • State of the art interface / technology • Proactive and helpful team

Our Impact “Beehive did a good deal of the “We would strongly recommend “Beehive really understands grunt work for us. They provided any smart business to approach what it means to be an SME us with a cheaper, quicker and Beehive for their funding and it felt like they were part more flexible loan, and as a result requirements.” Shahriar of our team.” Prabissh we saved around 30% on our Khodjasteh, Co ‐ Founder and Thomas, CEO of PTL Solar financing costs.” Wadih Haddad, President of DDE Founder and CEO of The Box

Achievements Businesses Beehive Investors financed AED 20 businesses 45 applied for 2.5K MILLION funded registration $5.4M 30% 72 hrs 12% 0% saving on cost avg. time for avg. annual default of finance approval net return rate

Our Aspirations

What Beehive learned about innovation 1. Fail fast, positive and integrate 2. Find people who can and want to co ‐ create with your company 3. Foster a culture where ideas are shared and encouraged 4. Give your staff the power to make decisions 5. Confidence is key

Thank You Paul Boots paul@beehive.ae