Solve A$-$C $3.$ Estimate market size.

a$.$ Total addressable market $($TAM$)$

b$.$ Serviceable addressable market $($SAM$)$

c$.$ Serviceable obtainable market $($SOMKiva

$$ Microlending, with a focus on serving underserved communities and promoting

financial inclusion while making a social impact.

$$ Founded in $2005.$

$$ Repayment rate is over $98\%.$

$$ Funding comes from donations, individual lenders, institutional partners, as well

as grants.

$$ Strengths:

$$

$$ Offers various services such as peer$-$to$-$peer lending, microloans, and

focuses on global social impact and financial inclusion.

$$ Allows lenders to choose borrowers from different sectors $($Tech$,$ small

business, education$),$ empowering them to support causes they believe

in$.$

$$ Provides detailed borrower profiles, including needs, wants, and

planned use of the loan, emphasizing transparency.

$$ Operates on a zero$-$interest model, receiving platform fees to cover

operational costs instead of interest.

$$ Global reach across $70+$ countries with a focus on financial inclusion to

combat poverty and promote social and environmental causes.

$$ Weaknesses:

$$

$$ Offers smaller loan amounts.

$$ Potential high$-$risk associated with microloans.

$$ Limited returns for lenders due to no interest payments.

$$ Lending Club

$$

$$ Founded in $2007.$

$$ Connects borrowers and investors indirectly via their platform, allowing

individuals to lend money and collect interest.

$$ Publicly traded on the stock market $($LC$).$

$$ Strengths:

o

$$ Registered with the Securities and Exchange Commission $($SEC$).$

$$ Acquired Radius Bank in $2020$ to transition into a full$-$service bank.

$$ Focuses on financial inclusion, offering banking services such as

savings, checking, CDs$,$ credit cards, and loans.

$$ Allows buying or selling loan notes on secondary markets.

$$ Weaknesses:

o

$$ Does not accept new peer$-$to$-$peer notes since $2020$ due to the

transition to a full$-$service bank.

INTERNAL USE

$$ Faces issues with high default rates and potential bias in the loan

process.

$$ Bias towards the loan system while using algorithms in the

process.

$$Accion USA

$$

$$ Founded in $1961.$

$$ Discontinued some programs in $2021$ but still acts as a microloan and

financial services provider, offering financial education and business

development services.

$$ Aims to expand financial inclusion and empower low$-$income communities.

$$ Strengths:

o

$$ Operates within the U$.$S$.$ and globally.

$$ Certified as a Community Development Financial Institution $($CDFI$)$

by the US Department of the Treasury, showing commitment to

underserved communities.

$$ Offers microlending, financial education, and business

development services.

$$ Weaknesses:

o

$$ Individuals cannot directly invest in Accion's loan portfolio, only

through donations and volunteering.

$$ Operates as a non$-$profit and does not function like a traditional

peer$-$to$-$peer lending platform.

$$ Upstart

$$

$$ Founded in $2015.$

$$ Trades on the stock market $($UPST$).$

$$ One of the largest peer$-$to$-$peer lending platforms, utilizing AI$-$powered

models to assess borrower credibility.

$$ Strengths:

o

$$ Utilizes AI capabilities to approve rates and loan amounts.

$$ Claims to offer the lowest rates for clients with good credit

histories.

$$ Allows only verified investors on the platform.

$$ Weaknesses:

o

$$ AI model may exhibit bias in offering loans and rates, with a young

demographic presenting high default risks.

$$ Offers personal loans, auto refinance loans, and recently added

student loans.

$$Prosper

$$

$$ Founded in $2006.$

$$ Leading online marketplace for peer$-$to$-$peer lending in the U$.$S$.,$ connecting

borrowers with investors seeking returns.

$$ Offers loans for various purposes such as personal loans, debt

consolidation, and home improvements.

INTERNAL USE

$$ Strengths:

o

$$ Employs an auction$-$style system where borrowers list loan

requests and investors bid on offers.

$$ Provides a secondary market where investors can buy or sell loan

notes before maturity, ensuring liquidity.

$$ Utilizes a risk$-$based model where interest rates are determined by

borrower creditworthiness.

$$ Offers investors tools and high$-$quality data to track investments.

$$ Weaknesses:

o

$$ High$-$interest rates due to inherent risks.

$$ Risk of borrower default leading to losses for investors.

$$ Platform fees for both borrowers and investors when using

Prosper's services.