FinTech & InsureTech - Consumer Lending: Company presentation by Roberto Valerio, CEO of Risk42 at the NOAH Conference London 2019, 30-31 October, Old Billingsgate.

1. Solving Consumer Credit Lending
by making credit agency scoring obsolete
Roberto Valerio, Founder

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3. 1 Trillion Euros
Outstanding Credits
Banks underwrite most of the market.
Interest rates are above 5%.
A highly secure and profitable
business.
C O N S U M E R L E N D I N G I N E U R O P E

4. “Do we get our money back?”
Future Repayability: Is the borrower willing
and able to pay me back?
Today’s solution for banks: Regulated scoring
models with very few data points, highly
dependent on Credit Agency Scores.
50% of online credit applications are being denied!
T H E K E Y Q U E S T I O N F O R B A N K S

5. “Credit Agencies: The last to know”
Negative Indicators can take months to be represented in a credit
score. So credit agencies are limited in projecting future financial
behavior.
Furthermore, a growing number of young or immigrated people are
not covered well enough to be scored adequately by credit agencies.
They simply do not have enough collected data about them.
T H E C R E D I T A G E N C Y D I L E M M A

6. > 700.000
By using customer bank account data and data from individual
online applications, RISK42 was able to build machine-learning
models that predict a majority of future loan performances
…without being dependent on credit agency score data!
C O N S U M E R C R E D I T
A P P L I C A T I O N S A N A L Y Z E D
€ 7bn
O V E R A L E V A L U A T E D
C R E D I T S U M
> 90%
A C C U R A T E P R E D I C T I O N S W I T H O U T
U S I N G C R E D I T A G E N C Y S C O R E S
A N E W A P P R O A C H

7. INFINITY is a stable, scalable software platform
to create, deploy, run and monitor risk
assessment models for real-time decisioning.
Models can be a combination of machine
learning algorithms and precise business
rules, optimized for either speed or quality.
External data sources and proprietary
machine learning models can be added.
O U R P R O D U C T

8. Sales & Finance: Roberto Valerio
Seasoned founder who built software startups from a product idea to a scalable and sales-oriented
organization. Former Founder of a highly successful Fraud Prevention Startup.
Head of Software Architecture: Simon Schenk
Studied business informatics. EU research on the semantic web. 10 years experience heading software
engineering teams. Designed architecture for real-time machine learning application on streaming data.
Head of Data Analytics: Dr. Mario Elstner
Studied Computer Science, Physics, Mathematics. PhD in Mathematical Physics (TU Munich). Well
established expert in data analysis & statistical modelling.
The complete founding team of 11 people
already worked together at a highly
successful fraud prevention startup.
T H E T E A M

9. # George Watch
Risk42 Company Profile
Founded September 2018 in Hamburg, Germany
Investors:
- CHECK24 Ventures (Europe’s largest Price Comparison Site)
- Lars Hinrichs (Advisory Board Deutsche Telekom AG)
Customers:
- Consumer Credit Comparison Sites (OPC)
- Retail Banks, Consumer Credit Lenders

10. W e a r e c u r r e n t l y r a i s i n g c a p i t a l . C o n t a c t u s :
R o b e r t o V a l e r i o , F o u n d e r
r o b e r t o @ r i s k 4 2 . c o m
D r . M a r i o E l s t n e r , F o u n d e r
m a r i o @ r i s k 4 2 . c o m
h t t p s : / / r i s k 4 2 . c o m
The ultimate answer to Consumer Credit Risk.

11. Selected Completed NOAH Transactions
Focus on Leading European Internet companies
Covering over 400 companies across 25 online
verticals, a broad range of over 500 investors as
well as 100+ online-focused corporates
Deep understanding of industry dynamics
Ability to add value beyond banking advice
Facilitates overall process and minimizes
management distraction
NOAH Advisors is globally well connected
and has direct access to virtually all key
players in the industry
Knowledge of and strong relationships with
potential buyers’ key decision makers
Proactively finds and unlocks attractive
investment opportunities for leading investors
Annual NOAH Conference in its 10th year
Over 40 years of combined relevant M&A experience
Routine execution of M&A and financing transactions
with sizes of several billion euros
30 successfully completed NOAH Advisors transactions
underline successful transfer of M&A competencies to
the Internet sector
Entrepreneurial mind-set, focused on growing the
business and establishing a reputation for excellence
Ability to deliver top results in short time frames
Highly success-based compensation structures align
interests of clients and NOAH Advisors, and demonstrate
conviction to deliver top results
Creative deal solutions
Unique Industry Know-How
Unmatched Network and Relationships
Strong Investment Banking Competence
Full Commitment - We Are Entrepreneurs!
EUROPE’S LEADING INTERNET
CORPORATE FINANCE BOUTIQUE®
The NOAH Advisors Core Banking Team
Marco Rodzynek
Managing Director & Founder
Jan Brandes
Managing Director
Nikhil Parmar
Director
Olek Skwarczek
Associate
Lukas Schlund
Analyst
December 2014 October 2014
Sale of 100% of
for $800m to
Exclusive Financial Advisor to
Fotolia and the Selling Shareholders
Sale of 100% of
for €80m to
Exclusive Financial Advisor to
Trovit and its Shareholders
October 2016
Investment in
Exclusive Financial Advisor to KäuferPortal
and its Shareholders
by
84% Ownership
December 2016
August 2017
Financial Advisor to Silver Lake
Financial Advisor to EMK Capital
Investment in
Acquisition of a Majority Stake in
by
by
at a valuation of $200m
November 2019 July 2019
September 2018
Financial Advisor to MagicLab
Financial Advisor to AU10TIX
and its shareholders
Financial Advisor to 10bis
and its shareholders
Acquisition of a 79% stake in $60m Investment in
Sale of 100% in
by
at a valuation of ~$3 billion
at a valuation of $260m by
for €135m to
10Bis