WHITEFISH, MT / April 22, 2014 / Considering how ubiquitous online commerce is nowadays, it’s sometimes difficult to appreciate that we’re still in the early stages of a transition towards a thoroughly virtual marketplace. Early investors who recognized the trend in consumables like music, books and tangible merchandise have been handsomely rewarded for their support of companies like Amazon (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL). Now there’s a new wave of investors who are expecting that a similar shift in other industries will prove equally rewarding. One such sector is the online personal loan industry, which is gaining an impressive amount of recurring business from traditional brick-and-mortar institutions. Some analyses indicate that as many as 70% of online borrowers apply for two to four loans annually, and a handful of lenders, companies like IEG Holdings Corporation (OTC Pink: IEGH), have positioned themselves to take advantage of this opportunity. IEGH in particular is now seeing its efforts generate significant traction, and the company is entering a rapid and accelerated growth phase.
The company markets itself to consumers online under the Mr. Amazing Loans brand, lending between $2,000 to $10,000 with terms of three to five years and with APRs ranging from 19.9% to 29.9% APR. They currently do business in Arizona, Florida, Illinois and Nevada, but they have received approval to expand into three additional states: Georgia, Virginia and Missouri. IEGH expects to begin marketing in these expanded territories by the end of this month, bringing their U.S. population coverage up by 58%, from approximately 42 million people to 67 million, or nearly 22% of the total U.S. population.
IEGH has also submitted applications to operate in New Jersey and Texas, and the company expects to file its California application imminently. Mid-range plans include applying for licenses in an additional 23 states by the end of the year. Longer-range, company executives have been eyeing the large populations of New York, Pennsylvania and Ohio – and for good reason. According to a Feb. 2014 report on online lending from financial service industry consultant Bretton Woods, considerable demand for loan products exists in such dense geographic areas despite the restrictive legislation these states have in place.
The goal of this aggressive growth strategy is for IEGH to increase its current U.S. population coverage by 324%, marketing Mr. Amazing Loans to customers in 33 states with a total 284 million people. This will bring market penetration to 90% of the U.S. population.
IEGH expects that this rapid expansion will not simply grow their customer base but will also promote national awareness of the Mr. Amazing Loans brand. The company believes that the combination of broader reach and enhanced brand exposure will translate into an increase of 500% or more in monthly loan volumes.
Importantly, IEGH appreciates that their success will not be driven by presence alone. They recognize that they must also deliver the convenience and efficiency that today’s consumers expect from online enterprises. Similarly, they recognize that the pricing of their online financial products and services must be highly competitive in order to secure new business and re-engage current and former customers seeking future loans.
To ensure that they satisfy these customer expectations and gain as much market share as possible, IEGH has been pursuing a business strategy that is specifically focused on online growth. This is in direct contrast to many competitors such as Springleaf Holdings, LLC (NYSE: LEAF) and OneMain subsidiary of Citigroup Inc. (NYSE: C) who view online loans as an add-on to their more traditional business and who fail to emphasize the unique nature of a virtual business. For IEGH, distinguishing themselves as an online specialist means that they must offer a seamless web experience with a fast, friendly front end for consumers and a robust back end for efficient operations. The company invests considerable effort in regularly reviewing their web presence, and their recently unveiled updated website is a significant improvement over their previous site and has set a new benchmark for the industry.
IEGH also boasts joint venture agreements with leading online personal loan lead sources that are proving fruitful even in the early stages. In less than a year, IEGH’s online cumulative lending loan volume has already increased by 343% from $237,000 to $812,000. The company recently set a new daily loan record of $28,000.
Additional information about IEG Holdings and Mr. Amazing Loans is available at www.investmentevolution.com.
ABOUT IEG Holdings (OTCPINK: IEGH)
IEG Holdings Corporation (IEGH) provides unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website www.mramazingloans.com. After lending approximately $48 million to over 11,500 borrowers in Australia, the Company Founder and CEO Paul Mathieson moved to the U.S. market in 2008 to replicate the successful business model. IEGH now operates online in the USA covering all of Nevada, Arizona, Illinois and Florida. IEGH is rapidly expanding and plans to offer loans in 33 states covering 90% of the USA population by late 2014. The Company launched advertising for its online loan origination platform in mid-2013, partnering with top lead generators in the United States. The Company's loans range in value from $2,000 to $10,000 and have a term of three to five years with a 19.9% to 29.9% APR. Significant growth is expected from the online loan origination business, which has the potential to scale much more rapidly and at a higher net margin than the previous brick-and-mortar business. For more information about the Company, visit www.investmentevolution.com.
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx
SOURCE: IEG Holdings Corporation