Market
OnisLiving is focused on servicing banks that lend to households carrying out home improvements
in metropolitan areas using remodeling professionals (not DIY). US home improvement expenditures
accounted for 2.02 % of total spending in the US economy in 1995 and for an almost identical 2.03 %
in 2009. Between 1995 and 2009, remodeling spending grew at a compound annual rate of 4.75 % while
the economy grew at a similar compound annual rate of 4.71 %. Even longer-term Commerce Department
estimates of improvements to residential structures have closely tracked the growth in the broader
economy.
Over the coming years, real spending on homeowner improvements is expected to grow at a 3.5 % average
annual pace, ensuring that the industry captures a large share of the residential investment market.
Source: 2011 study by Joint Center for Housing Studies of Harvard University (JCHS) titled: A
new decade of growth for remodeling, Improving America's Housing
Customers
OnisLiving will initially focus on selling its model and the HI-PAL concept to leading banks with
coast to coast retail presences such as Bank of America, Citigroup, Wells Fargo, Chase and HSBC
(we have already been approached by HSBC Holdings to service their Premier clients in the US and abroad).
Our contractor network will consist of formal general and special trade remodeling contractors posting
annual receipts over $100,000.00. JCHS estimates that there are 127,864 contractors in America with
this profile. We will refine this down to include only those with sufficient infrastructure to post
collateral with our surety partners and manage multiple remodeling projects simultaneously.
End User and Contractor Sales and Marketing Strategy
Banks can promote Premier loans, specifically "Home Improvement Performance Assured Loans" (HIPAL)
that, apart from providing the finance required to improve their home, also provide a way to guarantee
the borrower that their home improvement project will be competed to quality and within budget.
By initially offering our model exclusivity to banks we think end users will be more inclined to use
HIPALs thus creating a virtuous cycle with banks, their customers and OnisLiving and leading to a host
of positive externalities such as a standardized home improvement model and a safer housing market
with better quality and more valuable housing stock
