Opening up global pools of capital Samir Desai, CEO & co-founder

>$1.5 billion has been lent to thousands of small businesses globally through Funding Circle Source: Funding Circle; Used GBP/USD FX of 1.52 FC Quarterly New Lending ($m) 150% growth per annum 150% growth per annum

Exciting news: Funding Circle enters 3 new countries

Global leader in marketplace lending to small businesses + Leading small business lending marketplace in 5 countries UK, US, Germany, Spain & the Netherlands… ~450 employees ~ $120m lending / month ~$300m equity capital raised

The eco-system continues to grow

What is so special about marketplaces?

Marketplace lending platforms do not hold inventory, so are significantly more capital efficient 1 1 $bn BankMarketplace

Marketplaces are delivering better customer service US net promoter score Funding Circle UK UK banks Funding Circle US US banks UK net promoter score

Our model means eventually we can accept more businesses at lower cost More loans/ data Better marketing & acquisition costs Higher acceptance rates Better models & underwriting processes

Marketplaces are Faster, Better, Cheaper

Marketplace lending has arrived – true validation is being embraced by other internet marketplaces

Marketplace lending is transparent 2 2 Financials Loan by loan detail Investor net returns

Marketplace lending keeps it simple – repeat, repeat, repeat 3 3 Manpreet Dhot Chief Risk Officer, Funding Circle US Jerome Le Luel Rahul Pakrashi Chief Risk Officer, Funding Circle UK Global Chief Risk Officer, Funding Circle 20 yrs experience in credit risk management Global Head of Risk Analytics, Barclays Investment, Corporate and Retail Bank. CRO, Barclaycard (£40bn global portfolio) Capital One, Risk & Analytics 14 yrs experience in credit risk management Prior: HSBC, American Express, Morgan Stanley, Discover Financial Services, and Oliver Wyman 15 yrs experience in credit risk management Chief Credit Officer, Amex PR & IDC Director, Small Business Modelling, Amex Director, Collections Modelling & Analytics, Amex Small business specialist credit assessment team Team of 37 dedicated SME underwriters globally 313 years combined experience Global credit risk, analytics & underwriting team Risk & analytics team Team of 10 dedicated SME risk specialists globally 102 yrs combined experience Torsten Nahm Chief Risk Officer, Funding Circle CE 9 yrs experience in credit risk management Prior: Commerzbank, Allianz, KPMG, Oliver Wyman

Leads to superior credit performance Cumulative loss rates by year - UK portfolio

Attractive and stable returns now available to investors, where previously held on bank balance sheets $247m Lending to Date $1,347m Lending to Date UKUS Fee Annual Losses Actual Net Return 15.8% gross 10.3% gross

Marketplace lending is democratic - any investor small or big can access the same loans INVESTORS Funding Circle SME Income Fund Institutional Investors Government Retail Investors FC Credit Process Random Selector Approved loans Rejected loans Continued tracking and analysis of rejected loans Loan Applications Whole loan marketplace Partial loan marketplace 4 4

Individual investors can lend directly to businesses through Funding Circle in 5 countries

Government can directly support small business

Funding Circle SME Income Fund allows access to global small business lending Small business loans The global Exchange Traded Fund of small business lending Will be listed on London Stock Exchange Exclusive focus on small business loans Simple, transparent, low cost

Banks themselves are also turning to marketplace lending Borrowers receive fast access to finance Banks lend through marketplaces Banks also referring leads

Banks of the future? Retail deposit funded bank? 1.5x Up to 1.5x leverage 33x

Marketplace lending platforms do not do maturity transformation 5 5

What really happened at Northern Rock? Composition of Northern Rock Liabilities Short term retail and wholesale deposits fled – “bank run” – matched duration ABS and Covered Bonds did not

Marketplace lending platforms that follow these principles do not pose systemic risk >$ 5 trillion of assets NOT a SIFI – Systemically Important Financial Institution >$ 2.5 trillion of assets SIFI – Systemically Important Financial Institution

Recap - principles of marketplace lending 1. Do not hold inventory – only by not holding inventory can we be truly aligned with investors and be faster, better, cheaper 2. Transparent – loan book data on every loan originated 3. Simple – repeat, repeat, repeat 4. Democratic – any investor, large or small, can buy the same loans 5. No maturity transformation – do not create systemic risk by taking short duration money and matching to longer term loans

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