Presentation: Embracing technology to create trust among small businesses Presented by: Noah Breslow, Chief Executive Officer, OnDeck While the alternative lending industry for small businesses is burgeoning, creating trust for a customer base with heightened sensitivities is no easy feat. OnDeck CEO Noah Breslow explores how his 7-year old company used cutting edge technology and a passion for Main Street to change the relationship small businesses have with their lenders. www.bdionline.com

1. BDI: The Future of Financial Communications
December 4, 2013
Noah Breslow (CEO)
nbreslow@ondeck.com

2. OnDeck powers the growth of small businesses
through lending and technology innovation
Key Metrics
Delivered over $750M to small
businesses nationwide since
2007
$100M of equity capital raised
$50M in monthly loan
originations (Nov. 2013)
Headquartered in NYC, with
regional offices in Arlington, VA
and Denver, CO
100%+ year-over-year revenue
growth
Over 700 different industries
served
225 employees
Accolades include:
 2-Time Inc. 500|5000 Fastest
Growing Companies
 Forbes 100 Most Promising
Companies
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3. How is the financial services
industry being disrupted by new
entrants?
How do new financial services
entrants build trust with their
customers?
3
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4. Types of Disruption
4
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5. Three Financial Services Markets Being Disrupted
PAYMENTS
LENDING
BANKING
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6. Small Business Lending: Ripe for Disruption
Number of sub-$100k
commercial loans is declining
(millions)1
Low success rate of SMBs
securing capital2
13.0
Amount
undetermined
14%
10.2
Partial amount
approved
36%
5.8
3.9
Denied
37%
3.3
Full amount
approved
13%
2007
2008
2009
2010
2011
1. SBA 2012 Small Business Lending Study - # of Loans Originated by CRA Reporting Institutions
2. Federal Reserve Bank of New York Small Business Borrowers Poll Report, May 2012
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6

7. Small Business Owners Value Access,
Convenience, Speed, and Service
Branch Closures Signal Online Trend1
But, Bank Websites Still
Request In-Person Applications2
1. Bancography Study: The State of Branches In the Age of Automated Banking
2. Wells Fargo Website
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8. OnDeck uses technology to open up the market for
small business loans
Access
Untapped SMB market
Performance-based capital
using proprietary data and
credit models
Typical Borrower Profile
Speed
Customer Service
10-minute application
Funding as fast as 24 hours
A+ BBB rating
Best in Class NPS of 67
OnDeck Term Loans
Time in Business: 9.8 years
Amounts: $5-$250k
Annual Revenues: $964,000
Term: 3 - 18 months
Over 700 Different Industries
Used for inventory, working
capital, equipment, marketing
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9. And, to solve small business’ pain points
Small businesses should spend time running their business – not
dealing with financing
Small Business Problem
OnDeck’s Technology Solution
No time to search for capital
Advanced algorithms deliver decisions in
minutes
No time to assemble paperwork
Simple and paperless online application – takes
10 minutes to complete
Large monthly payments impact on
cash flow
Smaller, automated daily debit payments
Ongoing financing needs
Easy loan renewal process for existing
customers
Little / no business credit
Repayment reported back to the credit
agencies
9
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10. It is more difficult to be a new entrant in
financial services than in other industries
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11. How can we create trust among a
customer base that has good
reason to be distrustful?
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12. Building trust as a new entrant in financial services
Set the contrast
Simplify the message
Manage expectations accurately
Bring a human touch to online experiences
Engage your promoters
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13. Set the Contrast
Tell your customers that you’re better than the established provider
Established Provider
Who is disrupting them?
Payment Processors
Traditional Banks
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14. Simplify Your Message
Financial services is outside of small business’ day-to-day expertise –
make it easy to understand what you provide
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15. Manage Expectations Closely
Business owners are strapped for time – don’t make them search to find
processes and procedures
How do I become a customer?
How much does it cost?
How long will this take?
A fast and easy application process –
takes only minutes to complete.
Or, you can call 888-269-4246 if you
have questions
We have Loan Specialists available 6days a week
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16. Bring the Human Touch to the Online Channel
Small business owners closely associate their business with their
identity – servicing both the business and the person is crucial
Have real people available
– OnDeck is open 6 days a week with extended hours
Have multiple channels available
–
–
–
–
Phone
Email
Click to chat
Fax**
Bridge online and offline transactions through explicit connection
points
**Yes, small business owners still use fax machines
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17. Engage Your Promoters
Small business owners trust other small business owners more
than they trust you
Build ratings and profiles in places your audience visits
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18. Contacts:
Noah Breslow (CEO)
nbreslow@ondeck.com