Benji

Transcript

1. NOT  FOR  DISTRIBUTION   1  
2. Overview   •  Benji  is  a  turnkey  streamlined  solu>on  that   makes  Alterna>ve  Financial  Solu>ons  more   affordable  and  convenient  to  the  underbanked   consumer   •  Benji’s  goal  is  to  disrupt  the  brick  and  mortar   Cash  Checking  Outlets  by  lowering   intermedia>on  and  infrastructure  costs  through   technology   •  Stack  Paper,  Not  Fees  -­‐  Benji   NOT  FOR  DISTRIBUTION   2  
3. Team   •  Founder  and  Visionary  Officer   – Jonathan  T.  Palan   •  Deep  experience  in  disrup>ve  business  models   •  Managing  Director  at  Lending  Club   •  Founded  Lending  Club’s  Ins>tu>onal  Business   –  Brought  to  market  2  new  products   –  Raised  over  $500m  in  2  years  from  Ins>tu>onal  Investor   •  Founder  of  Globetrotr   •  Bachelor  of  Science  in  Economics,  Purdue  University   •  PhD  in  Scrappiness  and  Hustle  from  the  School  of  Hard  Knocks   NOT  FOR  DISTRIBUTION   3  
4. Opportunity   •  Underbanked  consumers  paid  over  $78b  last  in   interest  and  fees  last  year  alone  to  conduct   financial  transac>ons   •  The  problem  is  two  fold   1.  Cash  Checking  Outlets  dominate  the  distribu>on   of  Alterna>ve  Financial  Services  (AFS)   2.  Highly  fragmented  marketplace   NOT  FOR  DISTRIBUTION   4  
5. Alterna>ve  Financial  Services   •  Distributed  through  Check  Cashing  Outlets   •  $680b  in  transac>on  volume  last  year   •  $78b  in  interest  and  fees   – Prepaid  Debit  Cards   – Payroll  Cards   – Remicance   – Check  Cashing   – Bill  Pay   – Pay  Day  Loans   NOT  FOR  DISTRIBUTION   5  
6. Alterna>ve  Financial  Services  Breakdown   28%   16%   15%   14%   12%   8%   5%  2%   Transac2on  Volume  (  In  Billions)   Buy-­‐Here-­‐Pay-­‐Here  (BHPH)   Loans   Check  Cashing   Payday  Loans   Remicances   Prepaid  Cards   Refund  An>cipa>on  Loans   Money  Orders   NOT  FOR  DISTRIBUTION   6  
7. Why  Consumers  use   Alterna2ve  Financial   Services   48%   17%   12%   9%   3%   1%   1%   9%   %age   More  Convenient   To  Get  Money  Fast   Don’t  qualify  for  Bank   loan   Don’t  have  Bank   account   High  Bank  Fees   Do  not  Trust  Banks   Lack  of  Iden>fica>on   Documents   Other   Benji  is  both  more  convenient  and   faster  access  to  cash   NOT  FOR  DISTRIBUTION   7  
8. Check  Cashing  Outlets   •  Brick  and  mortar  branch  based  busines   •  15,000+  in  the  US  alone   •  High  infrastructure  costs   •  Saturated  with  intermediaries   •  Inconvenient  loca>ons  and  hours   NOT  FOR  DISTRIBUTION   8  
9. Solu>on   •  Online  web  based  plahorm  that  facilitates:   – Check  cashing   – Same  day  money  transfers   – Bill  Pay   •  How  this  helps   – Lower  infrastructure  costs  =  lower  fees   – Removes  many  of  the  intermediaries   – 24/7  access     NOT  FOR  DISTRIBUTION   9  
10. Problem     •  Highly  fragmented  marketplace  for  products   – Each  product  comes  from  a  different  merchant   – High  recurring  fees   – Higher  transac>on  fees   – Inconvenient   – No  cost  synergies   NOT  FOR  DISTRIBUTION   10  
11. Benji’s  Solu>on   •  Turnkey  solu>on  for  the  full  ver>cal  of   Alterna>ve  Financial  Services   –  Prepaid  Debit  Card   –  Payroll  Card   –  Money  Transfers   –  Check  cashing     •  How  this  helps   –  One  monthly  fee   –  Lower  transac>on  fees  per  service   –  More  convenient   NOT  FOR  DISTRIBUTION   11  
12. Fragmented  Market   Check   Cashing   Outlet   Money   Transfer   Fee   Prepaid   Debit  Card   Fee   Payroll  Card\   Fee   Bill  Pay   Fee   NOT  FOR  DISTRIBUTION   12  
13.   Benji’s  Streamlined  Solu>on   Benji   Fee   Check   cashing   Money   Transfer   Prepaid   Debit  Card   Payroll   Card   Bill  Pay   NOT  FOR  DISTRIBUTION   13  
14. Sender   Sending  Agent   Financial  Intermediary   Receiving  Agent   Receiver   Western  Union   Fee   Fee   Fee  +  FX  Spread   Fee  +  FX  Spread   12%   Ex:    Western  Union  Transac>on   NOT  FOR  DISTRIBUTION   14   $200   $176  
15. Benji  lowers  intermediary  costs   NOT  FOR  DISTRIBUTION   15   Benji   Lowers  cost  through  technology   Intermedia>on  Cost   Infrastructure  Cost   Customer  Acquisi>on   Cash  Checking  Outlets   Agency  Fees   Intermedia>on  Cost   Infrastructure  Cost   Customer  Acquisi>on   Benji  
16. Business  Model   •  B2C   –  Monthly  Subscrip>on  Fees   –  Transac>on  Fees   •  Check  Cashing   •  Money  Transfers   •  Bill  Pay   •  B2B   –  Licensing  Revenue   •  API  license   –  Revenue  Sharing   •  Transac>on  fees   NOT  FOR  DISTRIBUTION   16  
17. Customer  Acquisi>on   •  Target  demographic  specific  acquisi>on  channels   •  Promo>onal  offers  for  acquiring  new  users   •  Partnership  Opportuni>es   – USPS   – Local  urban  organiza>ons   •  Socially  responsible  interface   •  Benji  community  fund   – $1  earned,  $1  to  community  fund   NOT  FOR  DISTRIBUTION   17  
18. Pricing   Industry  Average   Benji   Monthly  Fee   $4.95  per  product   $4.95  for  all  products   Money  Transfer/ RemiJance   12%   5%   Check  Cashing   3-­‐4%   1-­‐2%   Bill  Pay   1-­‐2%   1%   Total  Cost   $150-­‐$175  a  year   <$100   NOT  FOR  DISTRIBUTION   18  
19. Industry  Comparison   Greendot   WU   Bluebird   Rushcard   Benji   Check  Cashing   x   x   Same  Day  Money  Transfers   x   x   Bill  Pay   x   x   x   x   Payroll  Card   x   x   One  Monthly  Fee   x   NOT  FOR  DISTRIBUTION   19  
20. Summary   Low  cost  provider  of  Alterna>ve  Financial  Services   Online  turnkey  solu>on   One  Fee  =  Full  Product  suite   Socially  Responsible   B2C  and  B2B  revenue  streams   NOT  FOR  DISTRIBUTION   20  
21. Prepaid   Debit   Card   Payroll   Card   Online   Check   Cashing   Same  Day   Money   Transfers   NOT  FOR  DISTRIBUTION   21