POWERED BY
THE PROBLEM TRADITIONAL CREDIT SCORES DON’T HELP COLLEGE STUDENTS
630
CREDIT SCORE AVERAGE STUDENT PAGE 2
VS
690
CREDIT SCORE NATIONAL AVERAGE
SWIMMING UPSTREAM: SCORES BASED ON PAYMENT HISTORY, CREDIT MIX, LENGTH OF CREDIT.
85%
AWARENESS IS AN ISSUE: STUDENTS IN A RECENT SURVEY DIDN’T KNOW THEIR CREDIT SCORE
EDUCATION IS EXPENSIVE:
37 MILLION $4,100
STUDENT LOAN BORROWERS WITH OUTSTANDING LOANS
EVERYDAY LIVING ISN’T CHEAP:
AVERAGE CREDIT CARD DEBT OF GRADUATING COLLEGE SENIORS
NOT JUST RETAIL THERAPY: MATTERS FOR CAR LEASES, APARTMENT RENTALS, AND CELL PHONES
STUDENTS NEED A FAIR SHOT AT ESTABLISHING GOOD CREDIT AND MANAGING THEIR BUDGETS
PAGE 3
THE SCOPE 3.3
MILLIONS OF POTENTIAL CONSUMERS
HIGH SCHOOL GRADS
HELPING
33 % OF THE U.S.
12.5 COLLEGE STUDENTS (18-24)
15.7
NON-COLLEGE (18-24)
54.7
UNDERBANKED (Alternative financial services)
24.9 UNBANKED
(No checking or saving account)
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THE LATEST ALTERNATIVE CREDIT SCORES
• TAP INTO NON-TRADITION INFORMATION AS A MEANS OF DEVELOPING EFFECTIVE PREDICTIVE MODELS • BANK ACCOUNT RECORDS PAYDAY LOAN PAYMENT RECORDS, INSTALLMENT PURCHASE PLANS ETC. • WEB AND MOBILE SOLUTIONS TO MANAGE PERSONAL FINANCES TO GO
PERSONAL BUDGETING TOOLS
• REAL-TIME CALCULATIONS AND UPDATES, EASY-TO-USE USER INTERFACES, SPENDING TRENDS, ETC. • FORMAL AND INFORMAL SOURCES FOR STUDENTS TO LEARN ABOUT PERSONAL FINANCE
FINANCIAL EDUCATION PAGE 6
• UNIVERSITIES WITH PERSONAL FINANCE COURSES, AND PARENTS WITH ‘LEARN FROM ME’ APPROACH
THE PLAYERS FICO EXPANSION SCORE:
DRAWS ON ALTERNATIVE CREDIT DATA. PRODUCES CREDIT SCORE MODELED ON THE TRADITIONAL FICO SCORE OF 300 TO 850.
PAYMENT REPORTING BUILDING CREDIT:
OFFERS CONSUMERS CHANCE TO PROACTIVELY BUILD A CREDIT PROFILE THROUGH TRACKING THEIR PAYMENT HISTORY.
MINT.COM:
FREE WEB BASED PERSONAL FINANCIAL MANAGEMENT. PULLS ALL FINANCIAL ACCOUNTS INTO ONE PLACE. SETS AND TRACKS BUDGETS.
LEVEL MONEY:
MOBILE BASED SOLUTION THAT UPDATES SPENDABLE CASH PURCHASES EACH DAY. LINKS TO US FINANCIAL INSTITUTIONS. PAGE 7
THE ANSWER CONSUMER MOBILE AND WEB APPLICATION
ENTERPRISE MASTERVAULT APPROVED RISK SCORE
• ALTERNATIVE CREDIT SCORE AND BUDGET TRACKER
• PROPRIETY MACHINE LEARNING ALGORITHMS ON INDIVIDUAL DATA
• TAG ITEMS TO SAVE FOR, LINK PRIMARY ACCOUNT, AND MANAGE BUDGET
• USED BY LENDERS TO SUPPLEMENT EXISTING CREDIT SCORING MODELS
• BUILD AN ALTERNATIVE CREDIT SCORE TO PROVE ABILITY TO MANAGE MONEY PAGE 8
BREAKING BANK API
• THIRD-PARTY ACCESS TO AGGREGATED DATA ON BREAKING BANK USERS • INFO ON PAYMENT BEHAVIOR, SPEND PATTERNS, FINANCIAL MANAGEMENT
THE VALUE STUDENT
UNIVERSITY
• ENHANCE YOUR CREDIT PROFILE
• AUGMENT FINANCIAL EDUCATION FOR STUDENTS
• ACCESS TO CUSTOMER BASE
• MAKE BUDGETING INTERACTIVE AND FUN
• ENABLE STUDENTS TO IMPROVE BASIC BUDGETING SKILLS
• AUGMENT EXISTING CREDIT SCORING CAPABILITIES
• BE REWARDED FOR BEING RESPONSIBLE • GET PREPARED FOR FINANCIAL REALITY
BANK
• IMPROVE NEW AND CROSS-SELL RATES
OTHER
• GET UNIQUE INSIGHTS INTO KEY DEMOGRAPHICS • IMPROVE SALES OF NEW CUSTOMER SOLUTIONS
PAGE 9
THE EXPERIENCE
THE PROOF
76%
ENHANCE, NOT SHIFT, EXISTING BEHAVIORS: OF STUDENTS BUDGET TODAY.
38%
61%
PAGE 12
OF STUDENTS SUPPLEMENT PARENT INCOME WITH OFF-CAMPUS JOBS.
EARLY DAYS IN THE BANK RELATIONSHIPS: OF STUDENTS HAVE A SINGLE FINANCIAL ACCOUNT.
75%
MOVE TOWARDS INDEPENDENCE:
DESIGN AND EASE OF USE MATTERS: OF STUDENTS RATED THESE AS THEIR TOP TWO APPLICATION FEATURES.
THE SCORE YOU
PEOPLE LIKE YOU
=
+ 50%-MONTHLY BUDGETING: DIFFERENCE BETWEEN INCOME AND ACTUAL SPEND
CREDIT CHIPS
EACH SCORE IS THEN COMPARED TO THAT OF OTHER ‘LOOK-A-LIKE’ STUDENTS
OVER TIME, ALGORITHMS WILL BECOME MORE ADEPT THROUGH MACHINE LEARNING
30%-ACHIEVING SAVINGS GOALS: TOTAL NUMBER OF PURCHASES COMPLETED. PRICE AND TIME FACTOR FOR EACH PURPOSE. 20%- MEETING EXPENSE ALLOCATIONS: DIFFERENCE BETWEEN ACTUAL VS ESTIMATED CATEGORY ALLOCATION PAGE 13
THE LOGIC
LOW
MONTHLY BUDGETING: CONSISTENTLY EXCEEDS MONTHLY ALLOWANCE ACHIEVING SAVINGS GOALS: FAILURE TO SAVE UP FOR PURCHASES MEETING EXPENSE ALLOCATIONS: UNABLE TO PROPERLY PREDICT BUDGET ALLOCATION
HIGH
MONTHLY BUDGETING: CONSISTENTLY SPENDS WELL BELOW MONTHLY BUDGET ACHIEVING SAVINGS GOALS: COMPLETES SAVING FOR PURCHASES QUICKLY MEETING EXPENSE ALLOCATIONS: ACTUAL EXPENSES ALWAYS MATCH ESTIMATED VALUES
THE REVENUE 1. SOCIALLY RESPONSIBLE REFERRALS
• ENABLE SELECTED THIRD-PARTIES TO PROMOTE RELEVANT PRODUCTS/OFFERS TO BREAKING BANK USERS • OFFERS INCLUDE CARD, BANKING, SAVINGS, AND OTHER (CABLE, CELL PHONE, INSURANCE ETC.) • THIRD-PARTIES WOULD NEED TO MEET ‘SOCIAL RESPONSIBLE’ GUIDELINES SET BY MASTERCARD.
2. USER SUBSCRIPTION MODEL
• OFFER TWO SUBSCRIPTION MODELS TO USERS. (1) STANDARD: $.25 PER MONTH SAVE FOR ITEMS, MANAGE BUDGET, BUILD CREDIT SCORE (2) PREMIUM: $.99 PER MONTH STANDARD + ACCESS TO MASTERSCORE™ LENDERS
3. ACCESS TO DATA
PAGE 16
• THIRD-PART ACCESS TO AGGREGATED DATA ON BREAKING BAD USERS VIA API PLATFORM • OFFER BUNDLED ENTERPRISE PRICING BASED ON NUMBER OF API CALLS PER MONTH (1) FRESHMAN: $10/MONTH, UP TO 5,000 CALLS (2) JUNIOR: $25/MONTH, UP TO 15,000 CALLS (3) SENIOR: $50/MONTH, UP TO 40,000 CALLS
THE POTENTIAL 14.8
USERS
REVENUE
REFERRALS
USERS
10%
1.5
$13.5
$5.2
$8.4
5%
0.8
$6.8
$2.6
$4.2
1%
0.2
$1.6
$0.6
$1.0
*
MILLION HIGH SCHOOL GRADUATES + COLLEGE STUDENTS
3% CONVERSION 70% STANDARD $29 REFERRAL FEE 30% PREMIUM 4 REFERRAL TYPES
*EXCLUDES 900K OF HIGH SCHOOL GRADUATES WHO DON’T GO TO COLLEGE ALL VALUES IN MILLIONS
PAGE 17
THE CHALLENGE 1. GAINING STUDENT ADOPTION
• RAISE AWARENESS OF CREDIT SCORE • MAKE BUDGETING COOL
2. INDUSTRY RECOGNITION OF THE MASTERVAULT™ SCORE
PAGE 18
• BETTER PREDICT THAN TRADITIONAL MODELS • DELIVER UNIQUE INSIGHTS INTO USERS
3. GETTING FIRST TO MARKET
• MOVE QUICKLY FROM TEST TO COMMERCIAL LAUNCH • SECURING EXCLUSIVITY EARLY WITH KEY PLAYERS
4. BUILDING FOR SCALE
• REACHING A LARGE NUMBER OF STUDENTS AT THE LOWEST COST • FINDING CHANNEL PARTNERS TO PROMOTE SOLUTION
5. DEVELOPMENT OF PROPRIETARY TECHNICAL TAXONOMY
• ESTABLISHING UNIQUE IP ON ALGORITHMS • ROBUST BB API PLATFORM AND API AGGREGATION
PAGE 19
THE GAMEPLAN 0-4
BUSINESS
• LAUNCH INITIAL TEST WITH UP TO 500 STUDENTS • ENGAGE ONE FINANCIAL INSTITUTION PARTNER AS A TEST LENDER • ENGAGE THREE PARTNERS FOR ‘I WANT CONTEST (TRAVEL/RETAIL/SERVICES)
MONTHS
• USE CORNELL AS A CHANNEL PARTNER TO PROMOTE TECHNICAL SOLUTION
PRIVATE BETACORNELL PILOT
• DEVELOP V1 OF MOBILE APP ON IOS • DEVELOP PROTOTYPE OF API PLATFORM • INTEGRATION WITH THREE PRODUCT CONTENT PARTNER API
PAGE 20
TECHNICAL
5-12
PUBLIC BETAEXPANDED PILOT
>12
MONTHS
MONTHS
BUSINESS
BUSINESS
• LAUNCH TESTS AT FIVE US COLLEGES; UP TO 10,000 USERS • EXPAND FINANCIAL INSTITUTION AND CONTENT PARTNER AGREEMENTS • LAUNCH OF SOCIALLY RESPONSIBLE REFERRALS • INITIAL VALIDATION OF ALTERNATIVE CREDIT SCORE MODEL
TECHNICAL
• DEVELOP V2 OF MOBILE APP; EXPAND TO ANDROID AND WINDOWS • DEVELOP V2 OF API PLATFORM • EXPAND INTEGRATION WITH PARTNER API’S • MOVE TO CLOUD HOSTING
INITIAL COMMERCIAL LAUNCH
• EXPAND TO 10+ US COLLEGES; UP TO 50,000 USERS • LAUNCH OF ‘STANDARD’ USER SUBSCRIPTION PRICING • LAUNCH TEST IN NEW USER VERTICAL (E.G. UNBANKED)
TECHNICAL
• BUILD FOR SCALE • EXPAND FUNCTIONALITY OF MOBILE APP INTEGRATION WITH PARTNER API IN NEW USER VERTICAL (E.G. LENDUP)
PAGE 21
THE BREAKING ETHAN ARNOWITZ DEVELOPER
NICOLE HAMILTON DESIGNER
PAGE 22
ADAM AXE
SOFTWARE ENGINEER
ELIZABETH KUZMENKO VIDEOGRAPHER
BANK TEAM KAYLA BAKER
CALEB BALBERA ‘16
STEPHANE WYPER
XIAO XU
MBA
VP, STARTUP ENGAGEMENT & ACCELERATION
MBA
DEVELOPER
PAGE 23