CEO, COO, CFO and other positions at peer-to-peer lender (student loans & credit cards)

CEO, COO, CFO  (recruiting other positions at all levels…)

This is an opportunity to help start a peer-to-peer lending company with a large founding equity stake.  We have raised $1 million in seed funding and anticipate closing a $10+ million round in 3-4 months.  A detailed executive summary is at the end of this job description.  Here is a brief intro:

·          We are targeting a $60 billion student loan and credit card markets which are perfect for the peer-2-peer & micro lending model. 

·          We plan to change our industry by empowering individuals to make their own decisions and cutting out traditional banks that take 5-10% from the value chain.

·          This business model takes advantage of the subprime meltdown which has resulted in investor skepticism and a consumer credit crunch. 

·          Our model will allow for fractional lending, as low as $50, so that small lenders can diversify their portfolio among many borrowers. 

·          Like eBay, we will provide a complete platform, but for micro lending.  We will act as an originator and will provide tools to micro lenders allowing for portfolio analysis, credit risk analysis and debt collection. 

·          By leveraging social networking, viral marketing, and DTC channels, we will draw borrowers and lenders to the site.

·          We will create a secondary market to enhance liquidity for small and large players.

·          We will include large industry lenders in the bidding process so that the marketplace will be a category killer for the industry.

·          Comparable companies are start-ups which include zopa.com, prosper.com, circlelending.com, and kiva.org (a non-profit).

The Team

We want to build on an already experienced Ivy League team with deep experience in our particular area of consumer finance.  Expertise includes risk, operations, securitization, underwriting, and consumer finance.  We are particularly strong in credit risk and it is one of the key strengths of the company.  We are building this company from scratch based upon the latest academic research and the information based strategies of Capital One.

Ideal Experience:

·          Consumer finance.  Especially credit cards and student loans.

·          Auction or exchange platforms at securities trading companies

·          Specific peer-to-peer e-commerce platforms like eBay, PayPal, etc

·          Social networking like Facebook, MySpace, etc.

·          Entrepreneurial Experience  

Compensation:

·          Competitive salary and benefits

·          Founders equity

·          Company will have offices in New York City, telecommuting is an option

 

We are looking additional people at all levels of the organization, in all departments: 

Some positions include General Counsel, Compliance Officer, Chief Executive Officer (CEO), Chief Operating Officer (COO), SVP Operations, SVP Finance, SVP Community Development, Chief Technology Officer (CTO) CIO, Chief Financial Officer (CFO), VP Product Development, SVP Marketing, Marketing Analyst, Operations Analyst,

 

Please apply for jobs through Monster or at  

Humanresources19@hotmail.com

Grant Sherman

 

 

 

 PEOPLE CAPITAL EXECUTIVE SUMMARY

People Capital’s mission is to build a competitive peer-to-peer lending platform that offers customized, risk-based products for young adults and investors.

4  Empower students to make better educational decisions by giving them efficient financing.

4  Apply cutting-edge Information Based Strategies from the credit card industry.

4  Underwrite students without credit history, FICO scores or co-signers.

4  Project individual income levels and ability to pay indebtedness.

4  Incorporate merit data such as GPAs, SAT scores, internships, college and major.

4  Provide true and unbiased, data-driven measure of economic value of an education.

Peer-to-Peer Lending

·         People Capital is targeting the $60+ billion credit card and student lending market that is perfect for the peer-to-peer & micro-lending model. 

4  Recent advances in technology will make traditional banks, and the fees they charge, obsolete.

4  Change the industry by empowering individuals to make their own decisions and cutting out traditional banks that take 5-10% from the value chain.

4  Allow for fractional lending, as low as $50, so that a small micro-lender can diversify his portfolio among many borrowers. 

4  Institutional investors want to lend on our platform because of the transparency, control, portfolio customization, and higher risk adjusted returns.

4  Timing – our p2p business model takes advantage of these underlying trends:

4  The subprime meltdown resulted in investor skepticism and a consumer credit crunch which is ideal for this business model.

4  In the event of a recession, higher education attendance, student spending and debt always increase.

4  As a branded DTC company, we can take advantage of the newly reformed student loan industry.

4  Legally designated student loans are not dischargeable in bankruptcy. 

4  Student loan interest is tax deductible.

4  Like eBay, provide a complete platform, but for lending.  Act as an originator and provide tools to micro lenders allowing for portfolio analysis, credit risk analysis and debt collection. 

4  Leverage social networking, viral marketing, and DTC channels, to draw borrowers and lenders to the exchange.

4  Create a secondary market to enhance liquidity for both small and large players.

4  Down the road, include large industry lenders in the bidding process so that the marketplace will be a category killer for the industry.

4  A few start-ups have successfully tested peer-to-peer concepts in a legally compliant way.  Comparable companies include zopa.com, prosper.com, circlelending.com, and kiva.org (a non-profit).

4  People Capital has secured a national lending license through a banking partner. 

4  There are a variety of student loan industry customizations and benefits that would make People Capital’s approach superior to these other peer-to-peer start-ups:

4  We focus on education lending and expanding access to education; our mission and social value is much more compelling to regulators and lenders. 

4  Patented credit risk expertise for this target demographic.  A Wharton Insurance Professor built the Human Capital Score, which is based on income risk projection, GPA, course of study, etc.  The Credit Risk Score is based on credit bureau information, FICO score, and other proprietary default data. 

4  Additional layers of verification specific to the student loan industry, such as GPA, grades, SAT scores, etc.

4  Certification of loan amount needed with school financial aid offices.

4  Broader range of loans, such as short-term, long-term and consolidation.

4  Ability to disburse funds to the college or directly to the student.

4  Additional compliance for student loan market will create barriers to entry.

The Student Loan & Credit Card Markets   

4  Opportunity to offer private student loans in the market is a large and growing opportunity due to rising cost of education, low family savings levels and relatively inefficient options to cover costs beyond aid and federal loans.

4  People capital plans to displace high-cost, inflexible “gap funding” products in use today, i.e., credit cards, loans that parents have to guarantee, by lending directly to student.  The full-length presentation provides a detailed analysis of the most underserved market, the undergraduate population, but we will also target the consolidation market, the graduate student population and international markets.

4  In addition to capturing share from relatively inefficient products/players, this approach will expand the market as it allows a higher proportion of high-school graduates to enroll in college, and for students not to drop-out, defer and thus lengthen their period of education

4  The key innovation is to build an industry leading credit scoring engine for thin files for a deferred payment product, i.e., a) predict credit behavior 1-4 years out, without b) significant credit history data.  No player in the market today has built a business around this innovation. 

4  The next 1-3 years offers a window of opportunity for new entrants with ability to manage credit smartly, primarily due to regulatory changes —Congress and Cuomo forced transparent competition by players in the school channel;  changes in the federal loan programs upsetting large lenders.

Business Model and Plan   

4  Revenues will come from fees based on origination, servicing, data licensing, late fees, secondary market sales and referral marketing.

4  People Capital will assume no credit or capital market risk, because all loans will be immediately sold to the micro-lenders seconds after origination.

4  Leverage strategic partnerships and outsourced vendors to gain scale, while keeping critical aspects in-house. 

4  The overall market in this vertical is $60 billion, but the lowest hanging fruit of the undergraduate market is~$16 billion in origination.  We expect to originate $100 million for the last six months of yr 1, $417 million in yr 2, and $1 billion in yr 3 with net earnings at 43%.  Please contact us for financials.

4  An investment of $20 million will get us to market in 6 months, and break even by month 19. 

4  Based on investor preference, People Capital can use a stage-gated business plan to minimize investment risk.  Starting with an initial investment of $1.5 million, total investments required to go-to-market is $10 million with an additional $10 million to fund growth.  However, larger upfront investments enable compressing time to go-to-market.

4  People Capital has assembled a team of world-class talent to execute on this business plan.  Most are experienced Wharton alumni coming from banking, student loans, consumer finance and internet ventures.        

4  The venture has raised seed capital from Josh Mailman, philanthropist and founder of the Social Venture Network www.svn.org, and Cedar Hill Capital Partners, a Wharton run hedge fund investing in student loan companies.

 

 

 

 

Keywords:  specialty finance, consumer finance, securitization, ABS, asset backed securities, IBS, stock options, start-up, entrepreneurial, investment banking, venture capital, private equity, unsecured, alternative loans, p2p, person-to-person, p2p, person-2-person, micro lending, social networking, grameen bank, student loan, credit card, education, capital one, first marblehead, discover, sallie mae, nelnet, citibank, mbna, VC, private equity