Acquisition Opportunity of Data, Models and Predictive Performance

How LendSight Works

LendSight begins by collecting and analyzing real time data on borrowers, their financial patterns and related performance which is added to our database of 4.5 million loans of approximately $66 billion. Using our proprietary algorithms, LendSight software then identifies loans with the highest probability of being paid back along with suggested pricing and duration generating an anticipated yield - all customizable to the lender's current and ongoing risk and yield environment. This process optimizes returns.

After approval, lenders underwrite these lending opportunities and earn outsized profits from consumer loans processed through LendSight, and LendSight will assist with ongoing portfolio analysis/management to manage risk. Concise valuation for buying or selling is another tool provided by LendSight.

The software continues to monitor borrowers' payments to align with their terms and uses this information to further inform and train the LendSight algorithms.

The software can also analyze data to identify/target new lending opportunities for lenders and has multiple compliance benefits.

Key Attributes

1. Collect Data: LendSight begins by collecting and analyzing historical data on borrowers and their financial patterns.

2. Identify Loans: LendSight software identifies loans with the highest probability of being paid back.

3. Integrate with Lenders: LendSight software integrates seamlessly with lenders, allowing for efficient collaboration.

4. Identify Opportunities: The software analyzes data to identify new lending opportunities.

5. Approve Loans: A portion of loan applications is approved based on insights generated by LendSight’s algorithms.

6. Invest in Opportunities: After the loan approval, lenders are able to underwrite these lending opportunities immediately.

7. Earn Profits: Lenders earn profits from the consumer loans that are processed and approved through the LendSight system.

8. Monitor Payments: The software continues to monitor borrowers' payments to ensure they are making payments as agreed.

Underwriting Value Proposition

1. Increased Efficiency and Accuracy: Drives more complete, accurate, detailed, and efficient tech-enabled underwriting. We generate greater yields. Complements existing underwriting processes with richer data and an unbiased approach.

2. Real-Time Risk Management: Real-time capabilities to manage risk - defaults, yield, rates - bespoke to your lending strategy. LendSight can be fully customized to align with your current real-time underwriting and risk management strategy.

3. Enhanced Capacity: Increases underwriting capacity. LendSight allows your team to do more both efficiently and effectively.

4. Compliance Benefits: Additional compliance-related benefits. LendSight capabilities further strengthen your compliance demands, including CECL calculations.

For every $500M in underwriting value, LendSight has demonstrated results to more accurately predict defaults optimizing pricing, providing greater results in excess of $15 million.

Portfolio Surveillance

LendSight created custom variables unique to LendSight; variables that provide proprietary insight into the probability of repayment and continue to evolve due to our advanced machine learning and neural network methods. A strong feature of LendSight is to provide a constant surveillance and responsive capability to your portfolio.

Custom Variables and Predictive Power

LendSight allows for real-time, unlimited-use analysis to align with your risk investment strategy and develop unlimited what-if scenarios. The predictive power of LendSight allows you to divest of risk ahead of the market.

Risk Management

LendSight has the ability to analyze each portfolio loan incorporating current borrower data with the extensive, historical data, and enhances risk management by reducing defaults, increasing yields, and managing portfolios more efficiently, effectively and accurately. LendSight provides a powerful risk management/return tool to manage portfolios more accurately than CECL and support action plans such as realignment and divestiture. For every $500 million in portfolio holdings, LendSight demonstrates a reduction in defaults in excess of $10 million (exclusive of optimizing pricing and increasing yields).

Buy/Sell Value Proposition

Real-Time Analysis

Allows for real-time, unlimited-use analysis and scenario planning of portfolios.

Tailored Portfolios

LendSight aligns your portfolios to your current investment and risk management strategy, defines divestment and more accurately values portfolios. What if scenarios are unlimited.

Comprehensive Valuation

Technical capabilities allow for analysis of each loan versus sampling. LendSight provides a more accurate and complete valuation of your buy / sell portfolio.

For Every $500M In Buy/Sell, Lendsight Demonstrated Results Reduce Defaults Alone (Exclusive Of Optimizing Pricing And Increasing Yields) In Excess Of $15 Million

LendSight Key Strengths

Data Collection

LendSight have collected & interpreted consumer credit data through credit cycles since 2007. They received millions of loan applications and collected repayment history data on more than four million loans from reputable data sources (Experian, TransUnion), through four lending platforms. This precious data dramatically informs current and future behavior.

Custom Variables and Predictive Power

LendSight created custom variables unique to LendSight; variables that provide proprietary insight into the probability of repayment and continue to evolve due to our advanced machine learning and neural network methods. The tool provides term, interest rate, amount-to-be-lent, and probability of payback. LendSight delivers outsized performance.

Risk Management

Built and tested loan processing filters to adjust for risk and target yields on a real-time basis to accommodate both loan origination targets and portfolio risk management parameters.

Integration

Built additional loan data workflows allowing for future propriety data collection from banks, credit unions, retailers, loan originators, loan securitizers, and those in adjacent markets. Seamless technical integration with existing systems.

Lending Support

Underwriting Support

LendSight provide traditional and non-traditional lenders an efficient and effective entry into the world of consumer lending.

Consumer Lending Data

LendSight manage a vast, proprietary and well-organized database of consumer lending data that can tell a traditional lender how many loans it lost to non-traditional lenders.

Community Reinvestment Act (CRA) Support

Banks, credit unions, and those in adjacent markets can use LendSight to improve their CRA position.

Equal Credit Opportunity Act (Regulation B) Support

Banks, credit unions, retailers, loan originators, loan securitizers, and those in adjacent markets can use LendSight in several ways to address this type of regulation.

Dodd-Frank Risk Retention Provision Support

Banks, credit unions, retailers, loan originators, loan securitizers, and those in adjacent markets can use the LendSight System to continuously review individual loan-level data and continually assess their ABS exposure risk.