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Investor Challenges in Peer to Peer Lending

Excerpts from the Boosting Investor Confidence in Marketplace Lending

Webinar

Part 1 of 4

Marketplace Lending Insights:

www.eoriginal.com

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Expert Contributors:

Steve Bisbee

• President and CEO

• eOriginal

Jon Barlow

• Founder of Eaglewood Capital

• eOriginal Advisory Board Member

Meg Zwick

• Senior Vice President

• Millennium Trust Company

Challenge #4: Transaction Speed

Challenge #3: Trusted and Actionable Data

Challenge #2: MPL Becomes Institutionalized

Challenge #1: Transparency in Marketplace Lending

Part One: Current Challenges in Marketplace Lending

Agenda

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Challenge #4: Transaction Speed

Challenge #3: Trusted and Actionable Data

Challenge #2: MPL Becomes Institutionalized

“There is a clear need for greater transparency in the market for borrowers and investors...”

Antonio Weiss, counselor to Treasury Secretary Jacob Lew

“Investor loan selection systems are only as reliable as the data they receive. If inaccurate data is sent, then systems can very likely make an imprudent judgment about which loans to buy for clients.”

NSR Invests’ Co-Founder and CEO, Bo Brustkner

Challenge #1:Transparency in Marketplace Lending

Marketplace Lending Insights

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Challenge #1: Transparency in Marketplace Lending (MPL)

Challenge #4: Transaction Speed

Challenge #3: Trusted and Actionable Data

Challenge #2: MPL Becomes Institutionalized

Challenge #1:Transparency in Marketplace Lending

Managing trusted asset data as well as original digital documents.

Providing security and auditability to assure proof and verification of the final disposition of all asset documentation.

Enabling the ability to conduct audit procedures on any contract asset or pool with a much higher level of efficiency by auditing digitally within minutes.

Governance and internal controls

Higher standards for risk management

What does MPL transparency look like?

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Challenge #1: Transparency in Marketplace Lending

Challenge #4: Transaction Speed

Challenge #3: Trusted and Actionable Data

Challenge #2: MPL Becomes Institutionalized

Challenge #1:Transparency in Marketplace Lending

Real-time capabilities help to streamline the loan process—ensuring compliance no matter how large or complex the asset.

Managing interactions and collaboration between all parties of the loan process in a thorough and auditable manner to reduce risk.

Streamlining every asset task, leading to increased transaction speed.

Managing the assets as transferable records within the secondary market.

How can MPL transparency become the standard?

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Meg Zwick, Senior Vice President Millennium Trust Company

Marketplace Lending Still Ripe for Growth

Challenge #4: Transaction Speed

Challenge #3: Trusted and Actionable Data

Challenge #2: MPL Becomes Institutionalized

Challenge #1:Transparency in Marketplace Lending

Is MPL transparency achievable?

“[M]arketplace lending, despite recent industry setbacks within the assets class is still very ripe for growth.”

“…[I]t's even more important that there are processes and procedures in place...that will restore consumer confidence and be the key to continued growth.”

“…[I]n marketplace lending you must be able to trust the data…as representing the assets which you are purchasing either on your behalf or in behalf of other investors or clients.”

“[I]t relates to data, integrity and transparency within marketplace lending...we've had some negative events, but I think there will be a silver lining in those events…and I think the sector will become stronger because of it.”

Jon Barlow Founder of Eaglewood Capital eOriginal Advisory Board Member

Steve Bisbee President and CEO eOriginal

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Challenge #4: Transaction Speed

Challenge #3: Trusted and Actionable Data

Challenge #1: Transparency in Marketplace Lending

Challenge #2: MPL Becomes Institutionalized

Capital and Confidence:

It’s coming back because of past negative events in the industry.

Higher Standards Required:

Investors are not going to hand money over to platforms without demanding higher standards of:

Trusted, verifiable, reliable and actionable data must be available.

Challenge #2: MPL Becomes Institutionalized

• Risk management • Transparency • Governance • Internal controls

Why institutionalize?

By using digital technology,

institutions can provide the

online security and auditability

our industry needs.

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Challenge #4: Transaction Speed

Challenge #2: MPL Becomes Institutionalized

Challenge #1: Transparency in Marketplace Lending

Challenge #3: Trusted and Actionable Data

Compliance Officers, Auditors,

Investors…

…need to ensure verifiable actions…

…throughout the asset’s lifecycle.

A very high velocity of capital is coming into this space requiring:

Accurate real-time data and real-time streamlining.

A larger amount of counter party involvement for acquiring and securitizing loan pool transactions.

Sophisticated management tools for lawyers, investors, custodians, fund administrators , digital marketplace lending platforms and more.

Throughout all of these interactions, we need streamlined digital collaboration and an audit trail.

Challenge #3: Trusted and Actionable Data

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Challenge #3: Trusted and Actionable Data

Challenge #2: MPL Becomes Institutionalized

Challenge #1: Transparency in Marketplace Lending

Challenge # 4 : Transaction Speed

Challenge #4: Transaction Speed

Securitization can take weeks from the pool cut…to closing the

transaction…

Digital processes can reduce that time from

weeks to days making…

Then, as governance and internal controls

are improved…

What are the benefits for the industry of improved transaction speed?

…large gains for the securitization user

and man hour savings

…easily transferable records with clear titles of ownership will be generated…

…facilitating secondary markets and speed-to-

market.

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Tune in for Part 2: Data Integrity and Transparency

Current challenges in marketplace lending

How can P2P lenders and investors trust the data? Steps investors can start to

take to establish confidence

The role of the custodian and the ABC's of eVaulting

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Data Integrity and Transparency: An overview of technology and risks

management

Next time: Data Integrity and Transparency

Don’t miss Part 2 of our Marketplace Lending Insights Series

How to implement all assets using digital transaction management from e-signature through their entire life cycle.

How using a trusted and scalable platform enables you to track with transparency the management of these assets as both enforceable and transferable.

How to gain trust in data that was used to create the assets and the data that is added onto assets as assets progress through the digital life cycle.

You’ll learn:

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Marketplace Lending Industry Insight

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For more information about us, please visit:

To learn more about Investor Challenges in Peer to Peer Lending, visit

our in-depth webinar.

eOriginal, Inc., founded in 1996, is the standard for eAsset® Management services for any business that needs the ability to verify secure, legally compliant and enforceable electronic asset documentation.

www.eoriginal.com info@eoriginal.com Call us at 410.625.5171