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"Peer-to-peer lending" Business Case

HB Reavis's Corporate Financing Department decided to expand a team and hire a high-potential graduate of Financial Management/Economical studies, to occupy a newly created position of Financial & Business Analyst. "Peer-to-Peer Lending" Business Case is supposed to help HB Reavis get in touch with high-potential university graduates, potential future employees of HB Reavis. For more information about the Financial & Business Analyst vacancy, visit http://hbreavis.com/career/
Since the outbreak of the great financial crisis in 2008 various “sharing economy” platforms have emerged, e.g. taxi hailing platforms, hospitality and short-term housing concepts, peer-to-peer lending platforms, etc.

Around the globe there are numerous peer-to-peer lending concepts which differentiate themselves in multiple features, such as targeted market/borrowers, credit risk assessment approach, loans origination strategy, pricing strategy, loan funding sources, etc.

The most advanced and biggest companies are: Lending Club, Ondeck, both companies are already publicly listed, so a significant amount of information, data and reports are available in the public domain.

Your task is to prepare a paper, that will cover topics below. Presentation format should be self-explanatory, no matter what presentation platform(s) will be selected.


You are to analyze the landscape and outline the strategy for establishing a new peer-to peer lending platform in CEE region (Poland, the Czech Republic, Hungary and Slovakia). Your work should cover these sub-topics:

  1. Identification and estimation of the market potential (in terms of size, target segments)
  2. Market entrance strategy, marketing, strategic partnerships, analysis of the competitive environment
  3. Setting-up of a business plan and financial model which you will present to potential start-up investors. The model should contain standard metrics such as forecasted balance sheets, P&Ls, cash flow, IRRs, break-even analysis, scenarios modelling, capital return indicators
  4. Propose a simple credit scoring algorithm/thoughts on it
  5. Staffing, identification of key people, motivating them, remuneration strategyPropose the initial split of the equity pool, its dilution and split further on when another equity financing round would be necessary

Then discuss the points below:
  1. Sustainability of a peer-to-peer business model
  2. Potential regulatory oversight and its impact on profitability
  3. Importance of the credit cycle, low interest rate environment, implications on the peer-to-peer lending if the credit cycle turned around
  4. What are the prerequisites for peer-to-peer lending concept to be successful (concept viability and its commercialisation) in CE region?
  5. Exit strategy
  6. Overall conclusion


Contact Person: Monika Komornikova, monika.komornikova@hbreavis.com