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Solve A - C 3 . Estimate market size. a . Total addressable market ( TAM ) b . Serviceable addressable market ( SAM )
Solve AC 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
Repayment rate is over
Funding comes from donations, individual lenders, institutional partners, as well
as grants.
Strengths:
Offers various services such as peertopeer 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 zerointerest model, receiving platform fees to cover
operational costs instead of interest.
Global reach across countries with a focus on financial inclusion to
combat poverty and promote social and environmental causes.
Weaknesses:
Offers smaller loan amounts.
Potential highrisk associated with microloans.
Limited returns for lenders due to no interest payments.
Lending Club
Founded in
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 to transition into a fullservice 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 peertopeer notes since due to the
transition to a fullservice 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
Discontinued some programs in but still acts as a microloan and
financial services provider, offering financial education and business
development services.
Aims to expand financial inclusion and empower lowincome communities.
Strengths:
o
Operates within the US 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 nonprofit and does not function like a traditional
peertopeer lending platform.
Upstart
Founded in
Trades on the stock market UPST
One of the largest peertopeer lending platforms, utilizing AIpowered
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
Leading online marketplace for peertopeer lending in the US 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 auctionstyle 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 riskbased model where interest rates are determined by
borrower creditworthiness.
Offers investors tools and highquality data to track investments.
Weaknesses:
o
Highinterest 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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