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 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.

The Dilemma

improve disrupt

Innovation within Government FOCUS

Freezone Property Commodities

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.

Disruptive Innovation

Established Market Disruptor Disruption Area

The world’s most popular media owner creates NO content The world’s most valuable retailer has NO inventory The world’s largest taxi company owns NO vehicles The world’s largest accommodation provider owns NO real estate

FinTech as a term is a compound of “finance” and “technology”.

Disruptive Innovation in the Financial Sector

The feeling of doing good Non‐monetary rewards Returns on the principal investment Ownership stake

DONATION REWARDS LENDING EQUITY

$1

trillion

by 2025

$9

billion

in 2014

started in

2005

Peer‐to‐Peer Finance (P2P) is a form of

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

Peer‐to‐Peer Finance

How P2P Works

Business applies for finance on the P2P platform P2P platform reviews and approves the finance request Investors bid to finance business Finance request is 100% funded with the most competitive bids at the lowest rate Business accepts the finance request and uses the funds for expansion Investors receive monthly repayments

• f capital + profit

1 2 3 4 5 6

How P2P Disrupts

0% 50% 100% Bank P2P

Cost Of Funds

Default & Processing Operating Expenses Investor Return

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

P2P in UAE

Beehive captured a new market by embracing new technologies and adopting new or disruptive business models. Beehive enhanced tried and tested innovative P2P technology to better fit target market culture.

How is Beehive Innovative

SME Financing

P2P

Alternative Investments Beehive

Lower cost Faster processing High returns Diversified risk

• Business finance from AED 100K to 1M
• Terms up to 3 years
• Lower rates (30% saving on cost of finance)
• Finance in days, not months
• No early repayment charges
• Simple application process
• Proactive and helpful team

Businesses

• Targeted rates of return above 10%
• Manage risk through diversification
• Invest from AED100
• Complete control over investments
• Option to access money early
• Support UAE businesses
• State of the art interface / technology

Investors

Beehive Advantages

Our Impact

“Beehive really understands what it means to be an SME and it felt like they were part

• f our team.” Prabissh

Thomas, CEO of PTL Solar “We would strongly recommend any smart business to approach Beehive for their funding requirements.” Shahriar Khodjasteh, Co‐Founder and President of DDE “Beehive did a good deal of the grunt work for us. They provided us with a cheaper, quicker and more flexible loan, and as a result we saved around 30% on our financing costs.” Wadih Haddad, Founder and CEO of The Box

Achievements

45

businesses funded

Businesses

30%

saving on cost

• f finance

72hrs

• avg. time for

approval

Investors

2.5K

applied for registration

12%

default rate

0%

• avg. annual

net return

Beehive

AED 20

MILLION

financed

$5.4M

Our Aspirations

• 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

What Beehive learned about innovation

Thank You

Paul Boots paul@beehive.ae