Consumer - FRA, LLC

Industry practices in marketplace and balance sheet lending continues to capture the attention of investors and regulators. What can you expect for 2016?

F I N A N C I A L R E S E A R C H A S S O C I AT E S P R E S E N T S

AltLend: Consumer SM

I n n o v a t i o n s i n Pr i m e a n d N e a r - Pr i m e Le n d i n g

January 21-22, 2016

M a r i n e’s M e m o r i a l C l u b San Francisco, California

D i s r u p t i v e l e n d i n g p r o d u c t s a n d m o d e l s h a v e c r e a t e d a t r i l l i o n d o l l a r i n d u s t r y. W e ’ r e t a k i n g a d e e p d i v e i n t o t h e p r a c t i c e s o f p l a t f o r m s , b a n k s , a n d i n v e s t o r s l e a d i n g t h e w a y. L e t ’s f i n d o u t how they’ll respond to new challenges and opportunities. •

•

New insights on growth and

What’s being done to create

and balance sheet lending?

capacity—what do we know

differentiation? Can the

How else are they getting

about rates going forward?

space continue to support

involved with platforms and

H o w h a s t h e Tr e a s u r y ’ s R F I

new platforms?

lenders?

affected the industry? What

•

•

•

Is the current cost of

•

Will Madden v Midland affect

has been the response?

bringing on new borrowers

Should investors be wary?

sustainable? Have platforms

Tr e n d s i n l i q u i d i t y,

demonstrated a consistent

securitization, and a

ability to generate new

helped investors to join

secondary market—is there

loans?

up with platforms, or is it

Are banks and investors still

scaring them away?

a real need? How are funds

•

and platforms responding?

Gold

the industry? Should we be concerned? •

Has the call for transparency

interested in marketplace

Silver

Sponsors CLOUD LENDING SOLUTIONS Lending Innovation Starts Here

Bronze

To Re g i s t e r : C a l l ( 8 0 0 ) 2 8 0 - 8 4 4 0 o r v i s i t u s a t w w w. f r a l l c . c o m

Partnerships between investors, banks, and innovative lending platforms continue to flourish. Are you ready for an advanced seminar focused on questions and trends in the consumer space? AltLend: Consumer brings together thought leaders from across the globe to discuss the latest obstacles and opportunities in marketplace and alternative lending. We’re going beyond the basics and digging into the sustainability of industry practices so that you can perform proper due diligence when purchasing whole or partial consumer loans. This is the perfect forum for investors and banks to ask hard questions of lending platforms. With interactive panels and lots of networking, you’ll come face-to-face with the innovators who are transforming the consumer lending space into a trillion dollar industry. Only a few marketplace lenders have experienced downturns in the credit cycle, but at the time they were too small to really be affected. Right now, times are good, and everyone is looking to get in on higher returns. But what happens when interest rates shift? Asking the right questions is the only way to protect your investments. From borrower acquisition to the institutionalization of the lending market, everything is on the table. We’re discussing transparency, regulatory concerns, new products, partnerships with banks, and other risks which

Our Renowned Speaking Faculty • • • • • • • • • • • • • • • • • • • • • •

Neil Wolfson, SF Capital Group Michael C. Szwajkowski, Capital One Joshua Rand, Petra Partners Robert C. Birmingham III, Treliant Risk Advisors Brian Korn, Manatt Matt Shibata, Morling Financial Advisors Matt Burton, Orchard Sid Jajodia, Lending Club Mike Edman, SLMX David Johnson, First Associates Loan Servicing James Viceconte, AllianceBernstein Eric Thaller, Prosper Marketplace Bobby Ritterbeck, Marlette Funding Kathlyn L. Farrell, Treliant Risk Advisors Andrew Tauber, Firstrust Bank Brian Weinsten, Blue Elephant Capital Roberto Hernandez, PwC Snehal Fulzele, Cloud Lending Solutions David Klein, CommonBond Jesse Silverman, LendUp Frank Borchert, Marlette Funding Jonathan Barlow, Eaglewood Capital Management

This conference is for institutional investors, banks, and innovative lenders interested in consumer prime and near-prime including, but not limited to: • • • • • • • • • •

Community Bankers Investment Bankers Head of Investments at Private Equity Firms and Family Offices CIOs from Hedge Funds and Institutional Investors Venture Capitalists Investment Fund Managers Attorneys Prime and Near-Prime Consumer Lenders Marketplace Lenders Tech Providers

you should be evaluating as you continue your journey with marketplace and balance sheet lending. Start 2016 off right with the information you’ve been looking for. Join us January 21st and 22nd at the Marine’s Memorial Club in San Francisco to be part of AltLend: Consumer. Register today! Call (800) 280-8440 or visit us online at www.frallc.com for more information. Sincerely,

Top Reasons to Attend •

• •

• • • •

Josh Krenz, Conference Director FINANCIAL RESEARCH ASSOCIATES

•

Hear directly from banks, investors, and trend-setting lenders. Is it all blue skies? Get key perspectives on the ups-and-downs of consumer lending Analyze and discuss industry data—this is your chance to evaluate the opportunities and risks within this space! Discover alternative paths to capital through unique partnerships with banks, hedge funds, private equity, and direct lenders Participate in interactive discussions with data providers and utilizers—unlock new assessment tools and skills! Evaluate the role of third-party originators and develop new techniques for acquiring clients Get the latest info on what the CFPB and Treasury are doing and how it will affect marketplace lending Develop best practices in transparency and policy to avoid regulation and legal pitfalls Learn how to evaluate platforms, products, and risk in the consumer lending space via traditional and non-traditional benchmarks

DAY ONE: Thursday, January 21, 2016 8:00 - 8:45 8:45 - 9:00

Michael C. Szwajkowski, Executive Vice President, Commercial and Specialty Finance Capital One Kevin Lewis, Head of Business Development Avant Tracy Jackson, Senior Vice President of Consumer Lending Regions Bank Andrew Tauber, Senior Vice President, Corporate Development Firstrust Bank

Registration and Continental Breakfast Welcome and Chair’s Opening Remarks

9:00 - 9:45 State of the Industry Things to Be On the Lookout for in Marketplace Lending • • • • •

What’s the size of the market? Is it expanding or is growth slowing down? Has capacity been reached? Can the consumer non-bank space continue to support new platforms and lenders? Have lending platforms received over-inflated valuations? Is the performance of publicly traded platforms a real concern? Let’s discuss growth rates—what do we know and can we draw any conclusions from the data? How will marketplace lending be affected by changing interest rates? What happens during the next recession?

11:45 - 12:30

Transparency Industry Perspectives on Lending Practices •

•

Roberto Hernandez, Principal PwC

•

Snehal Fulzele, Chief Executive Officer Cloud Lending Solutions

•

9:45 - 10:45 Investor’s Point-of-View What are the Interests and Concerns of Investors Regarding Buying Consumer Loans? • •

• •

How are investors approaching the consumer lending space? How do they determine which products and originators to work with? Are investors seeing the returns they were hoping for? What are the expectations? 11+ percent? Does that affect whom they choose to work with? Is there a preference towards whole loans or fractional? What are other perceived risks investors are considering in consumer lending?

James Viceconte, Managing Director, Portfolio Manager AllianceBernstein Sid Jajodia, Vice President, Small Business Lending Club 12:30 - 1:30

•

•

Panelists: Joshua Rand, Chief Operating Officer and Principal Petra Partners

•

James Viceconte, Managing Director, Portfolio Manager AllianceBernstein

Brian Weinstein, Principal Blue Elephant Capital Morning Break sponsored by

•

CLOUD LENDING SOLUTIONS Lending Innovation Starts Here

•

•

What opportunities exist for banks? Is it just equity investments and loan purchases? Are banks buying whole or partial loans? Are banks concerned about the regulatory environment? Have recent announcements from the Treasury and other regulators dissuaded banks from being part of marketplace lending? How do banks decide whom they will work with? Which risks concern banks the most?

Which parties are asking for securitization and why? Is securitization necessary for transformation? How does it help the consumer lending space to grow? What’s the impact on platforms, investors, and borrowers? Are there concerns? What are the legal requirements and implications for securitization? Is the industry doing enough to support and promote transparency with their securitized bonds? Should investors be wary?

David Johnson, Chief Executive Officer First Associates Loan Servicing David Klein, Chief Executive Officer CommonBond Jonathan Barlow, Founder Eaglewood Capital Management

Matt Shibata, Portfolio Manager Morling Financial Advisors

11:00 - 11:45 Partnerships with Banks How Are Traditional Institutions Participating in Marketplace Lending?

Networking Luncheon sponsored by

1:30 - 2:15 Securitization Is There a Real Need for Securitization in Marketplace Lending?

Moderator: Speaker name Company

10:45 - 11:00

There’s been a trend of platforms limiting data available—user interfaces or API have limited the number of fields and the amount of historical data—how transparent should platforms be to investors? What is the value? What is the purpose? What are the concerns and best practices for transparency? What are the expectations for “full transparency”? Is data being removed before it gets to investors? How should stakeholders develop transparency policy? What information should be available and to whom? Will transparency and policy development keep regulators at bay? What else can the industry do to encourage best practices?

2:15 - 3:00

Liquidity and a Secondary or Synthetic Market How Are Funds and Platforms Talking to their Investors about Liquidity? • •

•

Does the asset have a liquidity problem? What pathways exist for investors looking to change their positions on loans? How do funds value these loans? Are there best practices for managing this asset class? How are funds talking to their investors about illiquidity and redemption provisions? Can we really have a secondary market without the support of the platforms? Which steps are being taken to develop either a secondary or synthetic marketplace for consumer loans?

Matt Shibata, Portfolio Manager Morling Financial Advisors Matt Burton, Chief Executive Officer Orchard Mike Edman, Founder SLMX Sid Jajodia, Vice President, Small Business Lending Club 3:00 - 3:30

Afternoon Break

3:30 - 4:15 Regulatory Risks Which Steps are Being Taken to Keep Borrowers and Investors Safe? •

•

• •

Which regulators have taken interest in marketplace lending? What does the current environment look like? Are current rules industry-wide or limited to certain products and models? Are there any updates on the Treasury’s inquiry into the marketplace lending industry? Has it affected the way business is being done? How will their “skin in the game” request change things for lenders? “Originate to Distribute” or “Rent-a-Charter” risks—what are the concerns for lenders, banks, and investors? What will be the impact of Madden v Midland? How will this ruling affect the industry?

Kathlyn L. Farrell, Managing Director Treliant Risk Advisors Robert C. Birmingham III, Engagement Director Treliant Risk Advisors Brian Korn, Partner Manatt Jesse Silverman, Chief Regulatory Counsel LendUp Frank Borchert, General Counsel Marlette Funding

DAY TWO: Friday, January 22, 2016 8:00 - 8:45 8:45 - 9:00

9:00 - 9:30 Differentiation How Is Identity Formed in the Crowded Consumer Loan Market? •

•

• •

5:00 - 6:00

Has marketplace lending peaked? Is the bubble about to “burst”? Do smaller upstarts really have an opportunity to disrupt established players? Are you preparing for regulation? Have CFPB rules and Treasury investigations changed any of your practices? Where do you see the industry going next? Are there new products or models on the horizon?

What steps are platforms taking to separate themselves from the pack? Are we seeing differences in the products, pricing, funding, and origination? Should we be concerned about the number of similar marketplace products? What will the impact be on the industry?

Neil Wolfson, President SF Capital Group

9:30 - 10:30

Session TBD

10:30 - 10:45

Morning Break

10:45 - 11:30 The Rising Cost of Capital Finding Financial Backers to Stay Competitive •

•

4:15 - 5:00 What Keeps You Up at Night? Perspectives from Lenders on the Future of the Industry •

Continental Breakfast Recap of Day One

•

How are lenders competing with traditional institutions to make loans viable? When should non-bank lenders look to institutions for capital? Where do alternative financers have an advantage in finding capital? How does the cost of capital affect borrowers?

Eric Thaller, Executive Vice President of Capital Markets Prosper Marketplace 11:30 - 12:15 New Obstacles in Customer Acquisition Is the Cost of Bringing on Borrowers Sustainable? •

•

Cocktail Reception Please contact Jennifer Clemence for additional sponsorship information. (704) 341-2438 [email protected]

•

Have platforms demonstrated the consistent ability to generate new loans? Is there data to support this claim? Have things bottlenecked? Are all lead sources created equal? What’s the conversion rate of different sources and how does it affect stakeholders? ◦◦ Lead aggregators ◦◦ Direct mailing ◦◦ Social media ◦◦ Bank partners How are platforms coming up with new ways to reach borrowers? Is direct mail still the best option?

Bobby Ritterbeck, Chief Marketing Officer Marlette Funding

Media Partners 12:15

End of Summit

The Conference Organizer

Important Information

Financial Research Associates provides the financial community with access to business information and networking opportunities. Offering highly targeted conferences, FRA is a preferred resource for executives and managers seeking cutting-edge information on the next wave of business opportunities. Please visit www.frallc.com for more information on upcoming events.

Marine’s Memorial Club 609 Sutter Street San Francisco, CA 94102 (415) 673-6672 We have a limited number of hotel rooms reserved for the conference. The negotiated room rate of $239 per night will expire on December 21, 2015 although we expect the block to sell out prior to this date. To ensure you receive a room at the negotiated rate book well before the expiration date. Upon sell out of the block room rate and availability will be at the hotel’s discretion. The Marines Memorial Club – San Francisco, CA Our San Francisco military hotel is dedicated as a “living memorial” to the U.S. Marines who served in the Pacific during World War II. A landmark in San Francisco’s iconic Union Square since 1946, Marines’ Memorial Club & Hotel is located close to a bustling theater district in the heart of the city. Blending traditional décor and modern comforts, our classic 1920’s Beaux-Arts hotel offers an inviting atmosphere that is rich with history, honor and pride. Featuring 138 comfortably-appointed guestrooms, a fine dining establishment on the top floor, a 564 seat historic theatre, a full service health club, and ample space for elegant meetings and events, Marines’ Memorial Club & Hotel is an ideal choice among Union Square, San Francisco hotels for both leisure and business travel.

Team Discounts

• • •

Three people will receive 10% off Four people will receive 15% off Five people or more will receive 20% off

In order to secure a group discount, all delegates must place their registrations at the same time. Group discounts cannot be issued retroactively. For more information, please contact Whitney Betts at (704) 341-2445 or [email protected].

Refunds & Cancellations For information regarding refund, complaint and/or program cancellation policies, please visit our website: www.frallc.com/ thefineprint.aspx

Sponsorship & Exhibit Opportunities Enhance your marketing efforts through sponsoring a special event or exhibiting your product at this event. We can design custom sponsorship packages tailored to your marketing needs, such as a cocktail reception or a custom-designed networking event. To learn more about sponsorship opportunities, please contact Jennifer Clemence at (704) 341-2438 or [email protected].

G o l d Sponsors Treliant Risk Advisors is a multi-disciplinary compliance, risk management, and strategic advisory firm for the financial services industry and consumer-oriented businesses. Headquartered in Washington, DC, with offices in New York and Dallas, Treliant’s team of highly experienced professionals includes executives who have held senior positions in Fortune 100 companies, financial institutions, and regulatory agencies. Treliant provides its clients with critical advice and solutions in the following areas: regulatory compliance, including program development, consumer compliance, and fair lending; financial crimes, including AML/BSA, economic sanctions/ OFAC, and anti-bribery/anti-corruption; mortgage practices review, including litigation support, residential and commercial loan review, and mortgage servicing and operations; and risk management, including operational risk management, information assurance and cybersecurity, technology solutions, and capital and liquidity planning. For more information, visit www.treliant.com.

S i l v e r Sponsors Cloud Lending Solutions is a global cloud infrastructure company, offering a suite of SaaS applications that efficiently manages CLOUD LENDING SOLUTIONS loan portfolios, increases transaction volume, and rapidly brings new products to market for financial institutions. Our lending solutions are built natively on the Salesforce platform, enabling customers to significantly lower costs, generate greater revenue and outperform their competitors. Cloud Lending provides solutions to customers that range from innovators like Harmoney to industry leaders like Propel Financial Services. Lending Innovation Starts Here

B r o n z e Sponsors

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Industry practices in marketplace and balance sheet lending continues to capture the attention of investors and regulators. What can you expect for 2016?

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F I N A N C I A L R E S E A R C H A S S O C I AT E S P R E S E N T S

AltLend: Consumer SM

I n n o v a t i o n s i n Pr i m e a n d N e a r - Pr i m e Le n d i n g M a r i n e’s M e m o r i a l C l u b San Francisco, California

January 21-22, 2016

To Re g i s t e r : C a l l ( 8 0 0 ) 2 8 0 - 8 4 4 0 o r v i s i t u s a t w w w. f r a l l c . c o m