Redesigning SME financefor the 21st centuryJames Sherwin-SmithCEO, Growth StreetEXECFINTECH FRANKFURT – 8 MARCH 2016

A better way to financeand grow your business

A better way to financeand grow

A better way to financeA better way

Mission

25%

75%

SME finance is a massive market, but poorly served

£140 BN lent to SMEs in the UK¹ alone, yet…

• Only 25% of SMEs consider that their bank supports their business

• Only 13% of SMEs trust their bank to act in their best interests

1. Funding for Lending extension statistics, Bank of England, September 20152. Banking services to small and medium sized enterprises, CMA & FCA, July 2014

• SME Banking: Net Detractor Score: 8%²

13%

87%

Paradigm shift in the availability of data

PAST PRESENT FUTURE

BanksStale, lacks detail,portfolio approach

Growth StreetFresh, granular data that

supports company specific models

• Current account tx data

• Statutory accounts• Management

accounts

• Cloud Accounting data

• Private API access to firm performance info

• Public web sources

• e.g. Cashflow forecasts

• Transparent Assessment

• Feedback to the firm• Better firm

performance• Better financial terms

Banks aren’t investing…

Retail and Corporate banks are being split apart.

Tech investment is mostly to keep the lights on.

Regulatory agenda is consuming most resources.

Any discretionary spend is focused on ‘bigger’ opportunities.

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Overdraft: what nearly every business wants, but can’t get

SME borrowing via overdrafts in the UK(BoE, April 2011 to Nov 2015)

Down 40%in 3 years

Efficient cash flow management drives growth

Business hoards cashHuge opportunity costLimits growth potential

WITHOUT AN OVERDRAFT

£0

Flexible, short term borrowingBusiness invests excess cash (people, tech, etc.)Business grows faster

WITH A GROWTHLINE FROM GROWTH STREET

£0

Other lending solutions don’t solve this universal problem:

Wrong products (slug of capital)

Wrong approach (point in time decision)

Wrong method (sell and forget)

Wrong model (prey on lethargy & ignorance)

Finance fit for the 21st centuryGROWTH STREET SOLUTION

Bank independent, marketplace fundedGROWTH STREET SOLUTION

Simple to use and easy to understandGROWTH STREET SOLUTION

Use data and insight to put customers first

GROWTH STREET SOLUTION

A better way to financeand grow your business

James Sherwin-Smith, CEO+44 7816 318310 / James@GrowthStreet.co.uk / @26left

Growth Street, London, UK+44 808 123 1231 / Info@GrowthStreet.co.uk / @GrowthStreetUK