Special Presentation: Noah Breslow
Special Presentation by Noah Breslow, CEO of OnDeck, at LendIt USA 2015.
View and download the slides here.
On the heels of news of OnDeck's partnership with Prosper, CEO Noah Breslow, took a closer look at the effects of scale on credit for small businesses.
He said 20% of SMEs now look online for credit, after a general decline in availability of conventional loans to the sector after the credit crisis of the 1990s prompted a move towards national scale lending.
According to Breslow, the reasons for change are fourfold: SMEs’ operating systems are moving online for SMEs; limitations of subsidy loans (often inefficient and of limited reach); economies of scale e.g. efficiencies in marketing; access to capital.
After establishing the advantages of national scale activity, Breslow speculated about the positive value for SMEs in going global in their search for credit, with the possibility of more data sources and clear regulation.
OnDeck's hot-off-the-press partnership with Prosper proved timely, in exampling new models for SME development, which also included licensing.
The session closed with Breslow's prediction for Lendit in 2016, showcasing, “multi-country leaders in marketplace lending and we will need to be in Yankee stadium."