Trilha Finitech How we figured out we had a SRE team at - Crédito Digital: A Revolução dos juros baixos

1. © 2017 – Creditas Soluções Financeira Ltda. 1
Crédito Digital:
A revolução dos juros baixos
Sergio Furio, Julho 2017

2. © 2017 – Creditas Soluções Financeira Ltda. 2
The world YesToday (1960s, 2010s…)

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September 2008 – The end of Banking as we know it?

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New world coming:
2 innovations

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INNOVATION 1. Digital companies reinventing the way money flows

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INNOVATION 2. Digital driving efficiency

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RESULT: Providing value to both borrowers and Investors

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A vez do Brasil…

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Brazilian Credit Market
Singapore
Germany
UK
USA
Australia
Canada
Italy
China
India
Indonesia Russia
South Africa
Thailand
Argentina
Chile
Colombia
Mexico
Brazil
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
10 100 1,000 10,000
Outstanding Household Debt - 2015 (USD billion)
Developed Countries
BRICS and the likes
Latam
Brazil
Source: The World Bank / The Bank for International Settlement / International Monetary Fund
Bubble size represents total household debt service
Household lending rates (% per annum)
Brazilians are paying the highest interest rate in the world!

10. © 2017 – Creditas Soluções Financeira Ltda. 10
Mostly because they rely on highly-priced unsecured categories
• R$1.5 tillion market outstanding
household debt priced at 44%
• R$200bn (~12%) made up of highly-
priced unsecured categories with 230%
average APR
• These products represent US$450bn in
revenue pool for the industry0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
Outstanding Debt (US$ million)
APR %
Credit card
Overdraft
Personal Loan
Payroll Loan Auto Loan
Mortgage Subsidized
Source: Bance Central do Brasil
3 categories
Priced at 230%
With R$450bn+
revenue pool
R$ 1.5 Tr0

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In the meantime, vast amount of borrowers’ properties are free of debt
46 Million
residences debt-free
70% of all Brazilian residences
Sources: Instituto Brasileiro de Geografia e Estatística (IBGE) / Ministério das Cidades, Departamento Nacional de Trânsito - DENATRAN, Sistema Nacional de Registro de Veículos/RENAVAM,
Clear opportunity of using these assets to reduce the high borrowing cost
35 Million
cars debt-free
70% of all Brazilian vehicles

12. © 2017 – Creditas Soluções Financeira Ltda. 12
Então, a disruption…

13. © 2017 – Creditas Soluções Financeira Ltda. 13
Creditas introduced a digital platform for secured
loans in Brazil
Lowest rates in Brazil
From 25% APR for Auto Equity Loans
From 15% APR for Home Equity Loans
Seamless process
Designed for the digital user
No upfront charges
We take the risk of your appraisal!

14. © 2017 – Creditas Soluções Financeira Ltda. 14
Technology as the ultimate source of competitive advantage
Acquisition
Credit
UnderwritingFunding
Servicing
• UX for Digital + non digital user
• Behavioral models, anti-fraud
• CRM platform
• Affiliates platform
• Automate credit decisions
• Gather external info
• Loan pricing models
• Don’t ask if you can know
• Workflow platform
• Document management
• Validations, attributions
• Integration with cartorios, cetip
• Integrations CIP, Cetip
• Loan portfolio management
• Investment fund management
• Pre-payments, NPL
• Payments systems
• Loan economics
• Debt restructuring

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Continue building an organization to escale
COO
VP Mkt & Analytics
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CEO
VP Risk
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Devs
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Facilities
Partner Partner
AUTO HOME

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To organize a 215 troop: talentos@creditas.com.br