IEG Holdings Corporation is a public company listed on OTCQX trading as IEGH. IEG Holdings Corporation is headquartered in Las Vegas, Nevada and its CEO, Paul Mathieson has over 21 years’ finance industry experience in lending, funds management, stock market research and investment banking. Below is our interview with Paul Mathieson, Chairman of IEG Holdings:
Q: Paul, tell us something more about IEG Holdings and your history?
A: IEG Holdings Corporation is a public company listed on OTCQX trading as IEGH. We provide online unsecured consumer loans under the brand name, “Mr. Amazing Loans”, via our website , in 17 US states. The Company offers $5,000 loans over a term of five years at a 23.9% to 29.9% APR. I am the founder, CEO and major shareholder of the company and I originally successfully tested the business model in Australia before moving to the US in 2008. I hold a Masters of Applied Finance and have over 21 years’ finance industry experience in lending, funds management, stock market research and investment banking. In acknowledgement of the success of Mr. Amazing Loans in Australia, I was awarded Ernst & Young’s 2007 Australian Young Entrepreneur of the Year (Eastern Region).
Q: What advantage does IEG Holdings have over its competitors?
A: The advantages IEGH has over its competitors are the speed of online application and funding for the client (we can fund a loan from application stage within only hours while still retaining very strict underwriting standards). Another key advantage is the low weekly repayment cost of our loans only being $37.03 a week principal and interest repayment for a $5,000 loan over 5 years automatically direct debited from the customer’s account. We hold 17 state lending licenses in the US which is becoming increasingly important as more state and federal regulatory scrutiny is bearing down on the industry especially directed at peer-to-peer lenders who don’t hold any licenses. Unlike peer-to-peer lenders we hold the loans on our balance sheet resulting in up to superior 29.9% gross revenue margins compared to approximate 2% to 3% gross revenue margins for many peer-to-peer lenders.
Q: What were the main challenges you faced in developing the company?
A: The main challenge was the significant time and money that it takes to obtain individual state licenses from the US regulators. It is a very similar task/process to obtaining a banking license in each state with the main difference being that we can’t take deposits from customers. It has taken over 8 years to obtain our 17 US state licenses. The other challenges were fully integrating the multiple online platforms that we use into a system that can automatically decline more than 90 per cent of applicants instantly 24/7. We have fully integrated and customized the front end website portal, the backend loan processing system, the credit checking system, the bank statement retrieval system and the multiple lead providers. The end result is a website that has an incredible 50% plus application rate from people clicking on our website resulting in both a very low customer acquisition cost and a great customer experience.
Q: What are your plans for 2016?
A: IEGH plans to expand from the current 17 US states to 25 US states encompassing approximately 75% of the US market or approximately 240 million population. We also plan to grow new loan volumes significantly by increasing our direct, highly prequalified mail outs, increase spending on online lead advertising with Google, Bing, YouTube and add other online lead advertising partners to drive new customers.Activate Social Media: