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

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

3. 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?

4. 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

5. 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

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

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

8. 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

9. Other Ideas? CAMEO’s Role?

10. Thanks!!