The Idea

The Price Comparison Website (PCW) market is in dire need of disruption; although very profitable its generally viewed as an unfair, bloated and complacent industry.

FairMoney.com offers a new, multi-dimensional loans comparison website that specialises in the promotion of fair and bespoke loan opportunities to its customers.

By utilising their Machine Intelligence platform, FairMoney.com has honed its proprietary algorithms that consider not only the borrower's credit situation but also the lenders underwriting criteria, to produce a list of products that are best suited to the needs of the consumer.

The founder of the company, Dr Roger Gewolb, has invested £500,000 to date and has demonstrated his commitment to creating an ethical and transparent platform in finance through his “Campaign for Fair Finance”, which fully endorses the Fairmoney.com offering.

The Company is also supported by highly experienced a team of industry experts, including with senior level experience at market leaders such as JP Morgan Chase, MoneySuperMarket.com, GoCompare, KPMG and Standard Chartered.

The FairMoney.com team is raising £600,000 to market and hard launch the website and the Machine Intelligence platform later this year.

Accomplishments to Date

  • Currently, Fairmoney.com features 44 lenders who offer up to 71 high-spec offerings to the consumer.
  • V1 of the platform is complete and fully operational, and development has started on the next iteration, one which will fully implement Machine Intelligence features.
  • The company has a proven track record in establishing ethical business practices, with members spearheading the “Campaign for Fair Finance” initiative.

Revenue Model

FairMoney.com, like most other PCWs, will charge either...

  1. A cost per click or,
  2. A percentage of the loans made to advertisers

.....for visitors to their loan advertisements presented on Fairmoney.com.

However, a key differentiator between FairMoney.com and other price comparison websites is that FairMoney.com will not auction their top spots to the highest bidder, nor will it alter its searching algorithms in a way that could misrepresent an opportunity.

Nonetheless, participants in this space are often very profitable, operating on margins between 19-65%.

Use of Funds

The funds will be deployed in the following manner:

  • Marketing Costs: £185,000
  • Start-up Costs: £150,000
  • Salaries: £90,000
  • Tech Processing: £45,000
  • Overheads: £130,000

The Market

The Price Comparison Website market is currently estimated to be valued at £2.3bn, which is largely attributed to seven major players, including uSwitch, MoneySuperMarket and GoCompare.

The majority of customers that use PCWs are looking for information on Car and Home insurance.

However, FairMoney.com has identified the niche currently underserved by the available market participants: Consumer Loans.

Target Market

The loan sector that FairMoney is targeting amounts to:

  • 33m annual internet searches
  • 3.7m users who have researched a loan via a PCW
  • 1.9m users who have taken out a loan via a PCW.

Reaching The Market

Fairmoney will undertake a three pronged route to market strategy that encompasses:

  1. Pay per click marketing
  2. Search Engine Optimisation
  3. Public Relations and Press release material

USP Over Competitors

FairMoney.com's USPs include:

  • Technology and machine learning (MI) advantage – users will enjoy simpler, faster product recommendations through MI powered by their Enterprise Data Hub.
  • The fact that there is a large gap in the PCW market for loans; it is relatively untouched compared to other products.
  • While FairMoney.com will generate revenue from its website through cost per click and/or percentage of loans; unlike other PCWs, it won’t sell rankings or adjust algorithms to maximise revenue.
  • Its obsession with trust – fair and transparent platform will ultimately lead to increased conversions.

Exit Strategy

The team will begin to identify potential exits in year three after the business has established its brand and revenues have grown to an appealing level.

FairMoney.com will pursue both corporate and private equity exit opportunities to find an arrangement which most benefits the shareholders.

The most likely acquirer of FairMoney.com is another PCW that is looking to expand into more niche areas, in this case, consumer loans.

The team have drawn confidence for the strong exit potential for the business from the strong M&A activity in the sector, most recently including the acquisition of Decision Tech by MoneySuperMarket.com for £40m.

Alternatively, if no opportunities for acquisition arise, or if revenue growth is substantially higher than forecasts – the Company will look to list on the London Alternative Investment Market (AIM) Stock Exchange.

Live Pitch

Project Documents

Click the button(s) below to view / download important additional project documentation for FairMoney.com.

the Numbers

Target: £600,000 Raised so far: £200,000.00 Investors: 16
  • Days Left
  • Funded
Invest

top investors

Jim : £60,000 Roger : £24,000 Laurence : £24,000 William : £16,000
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