ENTREPRENEURIAL FINANCE LAB

ENTREPRENEURIAL FINANCE LAB

EXPANDING ACCESS TO DIGITAL FINANCE Alan Martinez, Director of Innovative Solutions info@EFLGlobal.com

ENTREPRENEURIAL FINANCE LAB

EXPANDING ACCESS TO DIGITAL FINANCE Alan Martinez, Director of Innovative Solutions info@EFLGlobal.com

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New Trends

Mobile User Expectations

Big Data FinTechs

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Emerging digital lenders

”Born Digital” Lenders Traditional FIs going digital

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Rejected w/o

review

Don’t apply

Insufficient collateral, documents

Approved Potential

Problem

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CDR

Journey

Customer

Acquisition

CREDIT SCORE

337

Score Delivered

Digital Channel

Mobile / PC / Tablet

FI Screening

Data Analytics and

Scoring Strategy

Application Psycho-

metrics

GIS

Bank Account

Aggregation

Traditional / Digital

Underwriting

The Best

Credit Decision

High volume

Online

Social

Sales History

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Solution

Mobile Relationship Conversational

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ALTERNATIVE DATA

EFL’s Alternative Data Score analyzes a consumer’s or entrepreneur’s deep aspects highly related to their success and willingness to pay

ATTITUDES & PSYCHOLOGICAL

PROFILE

ETHICS & HONESTY

FLUID INTELLIGENCE

BUSINESS SKILLS

WILLINGNESS TO PAY ABILITY TO PAY

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Solution – Digital Finance

Mobile Conversational

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Product

If you were to take a loan and NEVER REPAY IT, how much respect,

admiration and influence would you have compared with others ?

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Credit Score Represents a score that can be used to determine the credit decision. Using a cutoff, the score determines who to accept or reject.

CREDIT SCORE

337

Acceptance Criteria

Accept applicants with scores above optimal cut-off.

Risk-Based Pricing

Align interest rates with credit default risk.

Fast Track Approval

Shorten approval process for low-risk clients.

Loan Size Determination

Allow higher loan sizes for low-risk clients.

Use Case

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EFL expands lending to the other 80% of consumer and enterprise lending

markets . . .

Use Case - India

Leverages alternative data and technology to increase efficiency and

productivity

Works with data-driven CRO and Senior Management to make reliable & timely risk management decisions.

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Results Predictive power across 27 different geographies and more than 30 partners

Financial Institution 1 Financial Institution 2

Financial Institution 3 Financial Institution 4

4%5%4%

11%

0%

2%

4%

6%

8%

10%

12%

5%

~3x

Def

ault

Rat

e

3%

11%13%

8%8%

0%

5%

10%

15%

~4x

Def

aul R

ate

5%

9%7%

12%

17%

0%

5%

10%

15%

20%

~4x

Def

ault

Rat

e

5%

3%3%

2%

0%

2%

4%

6%

~2x

Def

ault

Rat

e

Worst Score

Best score

Worst Score

Best Score

Worst Score

Best Score

Worst Score

Best Score

4%

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675,680 credit assessments

Traction

+$1 Billion loan decisions

27 countries

Psychometrics

Entrepreneur Consumer

Mobile / CDR

Social

2010 2011 2012 2013 2014 2015 2016

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INDONESIA MEXICO INDIA

SOUTH AFRICA MEXICO INDIA

KENYA

KENYA PERU

MEXICO ECUADOR ETHIOPIA

INDIA

MEXICO HAITI

SPAIN BRAZIL PERU

ZIMBABWE

ECUADOR

MEXICO

COSTA RICA

GUATEMALA

GHANA

Partners

Global Partnerships

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Partnering with EFL

Increase Approvals

Transformational

Efficiency

Control Risk Proven

Alternative Data

Compete in a Digital World

info@EFLGlobal.com