Microlending Academy Peer Discussion OFN: Small Business Lending Landscape & Responding to FinTech

Today’s Agenda Review key points from OFN webinar Review some of their suggestions Discuss Give feedback on role or services CAMEO could provide

Today’s Questions Should mission-driven lenders respond to the fast-growing online Fin Tech industry? Reasons not to Reasons to What are some options that improve our competitiveness, yet keep us aligned with our mission?

The Small Biz Loan Market 25 million microenterprises in US 22% apply for credit each year Total small business loan market: $186 billion FinTech: $13.7 billion in 2015 (7%) OFN CDFIs: $656 million in 2014 (.4%) Loans under $100,000 account for 90% of small business loans

Benefits and Risks of Fin Tech Easy application Fast turn around Higher approval rates APR hidden Daily ACH absorbs working capital Repeat borrowing Based on success of lender not borrower

Discussion Should mission-driven lenders respond to the fast- growing online Fin Tech industry? Reasons not to Reasons to

Some Options: Technology Offer online application Use automated document retrieval Use some data driven assessment tools Leverage mobile device accessibility

More Options: Branding & Customer Service Compare your website to fintech: “Call to action” Ease of application access and completion Strive to make your process a highly rated customer experience: ease and speed Transparency about rate, terms, process Branding as preferred option, not last resort

Other Ideas? CAMEO’s Role?

Thanks!!