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Solve A - C 3 . Estimate market size. a . Total addressable market ( TAM ) b . Serviceable addressable market ( SAM )

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.

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