Early Game Changers - Presentation by Sebastian Diemer, CEO of Kreditech at the NOAH 2012 Conference in London, Old Billingsgate on the 7th of November 2012.

1. Confidential
October 2012
Preliminary | Subject to further review and evaluation
These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement with Kreditech Holding SSL GmbH.

2. We Clean Up The Payday Industry With Better Scoring
n BIG Data based scoring technology: 2,000 – 8,000 data points scored per application
n Automatized Processes allow for instant payouts at no variable cost
n B2C: Automatized Payday Loans Web / Mobile Loans
n B2B: Scoring as a service – A global API for credit decisions
Kreditech maximizes customer value, minimizes defaults, eliminates variable cost.
NOAH
Conference
London
2012
3

3. Payday Lending 2.0
n Multichannel: Web / Mobile Optimized Page / SMS (Feature Phones) / Native Apps
n Fast: On the bank account within 2-15min
n Easy: Application takes 5min No Docs, No Scans
n Transparent: No hidden fees
n Premium: >85% Rejection Rate
NOAH
Conference
London
2012
1

4. Traditional Payday Lenders Focus On Debt Collection
Payday 1.0 Wonga Kreditech
§ Payday Lending 1.0:
„Give loans to everyone at
high rates, collect aggressively“
§ Success factor:
Aggressive Debt Collection
§ Overdues are profitable:
Drive People in Debt Trap
à It‘s a dirty industry.
Focus on effective debt collection, no risk model at all despite 850.000 customers.
NOAH
Conference
London
2012
5

5. Wonga Built Risk-Focused Model On UK Data
Payday 1.0 Wonga Kreditech
§ Wonga was the first player to utilize an automatized, statistical risk model in UK
§ Wonga has built UK-proven model based on UK Ecosystem:
n Leads are bought
n Fraud / Identification done by outsourced third-parties
n Scoring Data comes from Experian – UK-specific format and quality
n Bank Account verification comes from third-party
§ This Ecosystem does not exist in new countries à Internationalization is cumbersome
§ Data availability is much lower in less developed markets.
§ New model is needed for every market.
§ Limited IP / StrongUK Brand
Wong built a UK –proven model based on third party (environmental) UK data.
This model does not work in less developed markets.
NOAH
Conference
London
2012
6

6. Kreditech Has Built Risk-Focused Model For Any Market
Payday 1.0 Wonga Kreditech
Location Data Fraud-Proof Localization , Micro Geographical Data
Browsing History, Browser Fingerprint, Cookies,
Behavioral
Interaction with Website
Technical Operating System, Browser, Hardware, OSX, etc.
Social Social Graph
Consumption Pattern
E-Commerce
Kreditech built country-independent risk model for markets with little/no environmental data.
NOAH
Conference
London
2012
7

7. Long Term Diversification Strategy: Scoring As A Service
Offline Retailer
Bank
API Scoring Decision
Loan Providers > 1000
EUR
E-Commerce Store
• Credit
bureaus
provide
outdated
informa@on
on
na@onal
level
with
old
technology
• Online
scoring
factors
are
neglected
Kreditech will diversify and monetize its technology by offering a global “Scoring as a Service”
API that provides credit decisions in real-time.
NOAH
Conference
London
2012
10

8. Smart Money Follows Talent
Team Investors
Sebastian Diemer, CEO
• London School of Economics
• Roland Berger Consulting
• Rocket Internet
• Serial Entrepreneur
Alexander Graubner-Müller, CTO
• University of St. Gallen
• LGT Capital
• Rocket Internet
• Exit Social Gambling Plattform
• Serial Entrepreneur
Background of 12 (Non Dev) Team Members Working in Hamburg
NOAH
Conference
London
2012
4

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