Redesigning SME credit for the 21st centuryJames Sherwin-SmithCEO, Growth StreetFINTECH WEEK LONDON – 17 SEPTEMBER 2015

25%

75%

Massive market, 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 risk 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.

£12BN

£13BN

£14BN

£15BN

£16BN

£17BN

£18BN

£19BN

£20BN

£21BN

01-A

pr-

11

01-Ju

l-11

01-O

ct-

11

01-Ja

n-12

01-A

pr-

12

01-Ju

l-12

01-O

ct-

12

01-Ja

n-13

01-A

pr-

13

01-Ju

l-13

01-O

ct-

13

01-Ja

n-14

01-A

pr-

14

01-Ju

l-14

01-O

ct-

14

01-Ja

n-15

01-A

pr-

15

01-Ju

l-15

RIP bank overdrafts

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

Down 40%in 3 years

Efficient cashflow management drives growth

Business hoards cashHuge opportunity costLimits growth potential

WITHOUT GROWTH STREET

£0

RCF enables ST borrowingBusiness invests excess cash (people, tech, etc.)Business grows faster

WITH 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 (fees > interest)

A credit line fit for the 21st centuryGROWTH STREET SOLUTION

Bank independent, marketplace fundedGROWTH STREET SOLUTION

Simple to use and easy to understandGROWTH STREET SOLUTION

Data and insight that puts customers firstGROWTH STREET SOLUTION

Fast, flexible overdrafts for growing businesses

For more information, contact the team on:

+44 (0)20 3411 0899Growth Street Ltd

5 Young St, London,W8 5EH

www.growthstreet.co.uk