IOU Financial Inc.

Corporate Presentation February 2018

Certain information set forth in this presentation may contain forward-looking statements. Forward-looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that IOU Financial expects or anticipates may occur in the future. These forward-looking statements can be identified by the use of words such as "anticipates", "believes", "estimates", "expects", "may", "plans", "projects", "should", "will", or the negative thereof or other variations thereon. These forward-looking statements reflect management's current views and are based on certain assumptions including assumptions as to future economic conditions and courses of action, as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are subject to risks and uncertainties and no assurance can be given that any of the events anticipated by such statements will occur or, if they do occur, what benefit IOU Financial will derive from them.

A number of factors could cause actual results, performance or developments to differ materially from those expressed or implied by such forward looking statements, including, but not limited to risks inherent in growing a new business, dependence on third-party service providers, competition, regulatory risk, dependence on key personnel, risks related to rapid growth of IOU Financial, security and confidentiality risk, risk related to inability to attract borrowers and lenders, technological development risk, IT disruptions, maintenance of client relationships, litigation risk, volatility of stock price, and other factors that are beyond its control.

Additional information concerning these and other factors can be found beginning on page 22 under the heading "Risks and Uncertainties" in IOU Financial's management's discussion and analysis dated November 29, 2017, which is available under IOU Financial's profile on SEDAR at www.sedar.com. IOU Financial does not undertake any obligation to update publicly or to revise any such forward-looking statements, unless required by applicable legislation or regulation.

Forward looking statements

2

28%

72%

Shareholder summary

• US$500+ million – over half a billion of total loans originated since inception.

• 8,000+ loans made to merchants and small businesses across the US and Canada.

• 4th on the 2016 PROFIT 500 List of Canada’s fastest growing companies.

• Proprietary, fully integrated technology platform.

• 3-5 minute application process with approved loans funded in as little as 24 hours.

• Scalable operating and financial model.

A leading online lender to small businesses

$509

$-

$100

$200

$300

$400

$500

$600

2009 2010 2011 2012 2013 2014 2015 2016 2017

Cumulative loans originated

in m

illio

ns

(US

$)

87.8M total shares outstanding

25.0M insider ownership

62.8M public ownership

3

• Large market with growing demand

– Online lenders expect to originate US$47 billion in 2020 from just US$4.6 billion in 2014 – a 47% CAGR.*

• Significant growth potential in loan originations

– IOU expects to ramp up its growth rate to 25%-30% per annum, over the long-term.

• Improving operating leverage

– Increasing portfolio yield.

– Decreasing cost of debt capital over time.

– Implemented credit improvement strategies.

– Decreasing operating expenses as a percentage of revenues.

• Unique, proprietary technology platform

– Allows for industry-leading operating efficiency.

• Alignment of interests

– Management, directors, insiders and employees own approximately 30% of Company’s stock.

• Significant inflection point reached

– Reached break-even in the course of Q4 2017 on an adjusted earnings basis – a significant inflection

point in Company’s trajectory.

Investment highlights

4

Source: * Morgan Stanley Research, “Global Marketplace Lending: Disruptive Innovation in Financials,” Blue Paper, May 19, 2015. Market size figures in USD.

The online lending industry

Online lenders will continue to

increase their share of the small

business lending market.

Larry Summers, former U.S. Treasury Secretary,

sees online lenders capturing a 70% market

share in small business lending.

Source: Morgan Stanley Research, “Global Marketplace Lending: Disruptive Innovation in Financials,” Blue Paper, May 19, 2015. Market size figures in USD.

$4.6 billion

$47.0 billion

Size of SMB online lending industry

2% of the total market

16% of the total market

2014 2020

5

$0

$300

$600

$900

$1,200

$1,500

$1,800

SMB lending in the USA since 2000

Small Business Loans (<$250K)

All Business Loans

Several key factors are driving the growth in online lending to SMBs.

• Banks have largely exited the small business loan market

– With a focus on larger loans, banks’ presence in the SMB loan market has been in decline for over a decade.

• Readily available institutional debt capital

– Institutional capital has been attracted by relatively high rate of returns available by lending in this market.

• Tremendous innovation and use of technology

– Ease and simplicity of the application process and the speed at which capital is delivered to merchants.

Industry growth drivers

Source: FDIC, Q3 2016 - Commercial and Industrial Loan Balances at FDIC – Insured Institutions under $250,000. All figures in USD.

Unmet demand

in b

illio

ns

(US

$)

6

Business model

IOU’s business model is simple,

scalable and has significant

embedded operating leverage.

IOU generates interest income from originated loans held

on its own balance sheet and servicing income from

originated loans sold to institutional investors.

The Company’s profitability is dependent on its cost of

capital, the credit performance of its loan portfolio, and its

operating efficiency.

Interest & servicing

revenues

Credit losses Interest expense Opex Operating income

IOU’s business model

7

Loan originations & Loans under management

The past eighteen months was a period of

transition for IOU. By increasing pricing,

lowering its cost of capital, tightening

credit and cutting costs, IOU has emerged

stronger and better-positioned to

profitably grow into 2018 and beyond.

in m

illio

ns

(US

$)

8

$0.4 $2.4 $11.5

$49.5

$99.5

$146.4

$107.6

$91.3

$-

$25

$50

$75

$100

$125

$150

2010 2011 2012 2013 2014 2015 2016 2017

Loans originated

in m

illio

ns

(C$

)

IOU will grow loan originations by:

• Increasing the number of loan brokers and capital

markets participants working with IOU.

• Continuing to add new strategic partners such as

banks and payment processors.

• Adding new products to complement IOU’s short-

term working capital loan product.

• Further geographic expansion into Canada.

$1.9 $11.8 $14.3

$27.5

$42.1 $35.0 $14.7

$42.7

$65.2 $28.2

$25.8

$0

$20

$40

$60

$80

$100

2011 2012 2013 2014 2015 2016 Q3 17

Total loans under management

Servicing portfolio

Principal portfolio

$26.5

$56.9

$92.7

$70.3

$60.9

$5.6

Revenues

IOU utilizes a hybrid revenue

strategy to fully optimize it’s

origination platform.

The yield on IOU’s principal portfolio has increased as

IOU raised pricing and introduced certain new fees and

measures to protect credit margins.

Servicing revenues declined as the Company shifted to

more of a balance sheet model in 2016.

in m

illio

ns

(C$

)

Note: TTM refers to “Trailing Twelve Months” as of Q3 2017.

9

Note: “Servicing & other” revenues represent actual cash revenues and exclude certain non-cash items such as gains on servicing asset and amortization of servicing asset. “Portfolio yield” is calculated by dividing TTM interest revenues earned over the period by the average of the beginning and end of period commercial loans receivable balance outstanding over such period.

$2.9

$6.8

$13.3 $15.3

$2.5

$5.6

$4.7 $2.8

$0

$3

$6

$9

$12

$15

$18

2014 2015 2016 TTM

Revenue breakdown

Servicing & other

Interest

31.8%

37.4% 39.2%

15%

20%

25%

30%

35%

40%

45%

2015 2016 TTM

Increasing portfolio yield reflects

increased loan pricing

IOU’s cost of debt capital has

decreased over time.

Interest expenses

$3.0

$15.0

$25.0 US base rate

+ 14%

US base rate

+ 12%

LIBOR

+ 8.5%

0%

5%

10%

15%

20%

$0

$5

$10

$15

$20

$25

$30

Q2 12 Q1 13 Q2 16

IOU’s borrowing evolution

In Q2 2016, IOU successfully negotiated a US$25M

(expandable to $50M) facility with MidCap Financial, a

company owned and managed by Apollo Global

Management, thereby lowering its cost of debt capital.

This facilitated:

• A slight shift to more of a balance sheet-funded

business model.

• Greater control over growth.

Siz

e o

f fa

cility

(U

S$

)

Co

st o

f d

eb

t

Note: TTM refers to “Trailing Twelve Months” as of Q3 2017. As of Jan. 2, 2018, the US Base rate and LIBOR 1-month rate were 5.00% and 1.56%, respectively.

10

Note: “Average net interest margin” is calculated as the average of four quarterly data points in a TTM period, with each data point calculated by subtracting interest expenses over the period from the portfolio yield (as defined on the Revenues slide) of such period.

16.1%

14.0%

10.8%

13.5%

11.4% 10.4%

6%

9%

12%

15%

18%

2012 2013 2014 2015 2016 TTM

Decreasing average cost of borrowing

Note: “Average cost of borrowing” is calculated as interest expenses divided by the average balance of debt outstanding over such period. The average balance of debt outstanding considers the average of five quarterly points-in-time, including the beginning and end of such period. Interest expenses and the average balance of debt outstanding includes both conv. debenture and credit facility interest expenses and balances.

13.2%

22.9% 25.3%

9.0%

13.9%

19.0%

0%

5%

10%

15%

20%

25%

30%

2015 2016 TTM

Provisional loan loss and

net charge off rates

Credit performance

Compared to prior years, and particularly in 2015 and

2016, loss rates in the online lending industry to small

businesses increased over historical norms.*

In response to this, IOU pro-actively implemented

the following strategies to improve its portfolio’s

credit performance:

• A tightening of credit oversight.

• An aggressive litigation strategy to pursue

intentional defaults by borrowers.

• Improved servicing and collections processes.

These improvements should manifest in upcoming

quarterly results throughout 2018. The Company

believes that default rates should revert to the

mean and anecdotally, is seeing early evidence of this

in its more recent loan vintages.

Historical average provisional loss rate

Note: TTM refers to “Trailing Twelve Months” as of Q3 2017.

11

Note: “Provisional loan losses” as defined in IOU’s financial statements. “Net charge offs” are calculated as receivables written off during the period as uncollectible minus recoveries of loans previously written off. * As per public disclosure from comparable companies operating in the online lending space listed on page 15 of this presentation.

IOU’s provisional loan loss and

net charge off rates have

averaged 16.6% and 12.8%,

respectively since 2014.

IOU’s scalable business model

provides great operating

leverage.

Operating expenses

In Q3 2016, IOU publicly announced a significant cost

reduction effort to set the table for sustainable growth.

• Goal of reaching quarterly adjusted opex of $2.0M

to $2.2M was achieved by Q3 2017.

• IOU anticipates average quarterly adjusted opex

of approximately $1.6M on a normalized basis in

2018.

in m

illio

ns

(C$

)

Note: TTM refers to “Trailing Twelve Months” as of Q3 2017.

Note: “Calculated adjusted opex as a % of adjusted revenues” is calculated as publicly anticipated 2018 normalized adjusted opex (which excludes certain non-cash items such as amortization and depreciation, stock based compensation, and certain non-recurring expenses) of $1.6M per quarter divided by TTM adjusted revenues.

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$2.7

$2.2

$1.6

$0.7

$1.4

$2.1

$2.8

2016 2017 Anticipated

Average quarterly adjusted opex

204%

77%

106%

79% 59%

50% 35%

0%

75%

150%

225%

2012 2013 2014 2015 2016 TTM Calculated

Adjusted opex as a percentage

of adjusted revenues

$15.3

$6.8

$3.8

$6.4

$1.1

$2.8

$0

$5

$10

$15

$20

TTM interest & servicing

revenues

Assumes credit losses had run

at historical average

Actual TTM interest expense Assumes opex had run at

$1.6M per quarter

Calculated operating income

Note: TTM refers to “Trailing Twelve Months” as of Q3 2017. “TTM interest & servicing revenues” represent actual cash revenues earned by IOU and exclude certain non-cash items such as gains on servicing asset and amortization of servicing asset. “Pro-forma credit losses based on historical average” is calculated as the average of the quarterly provisional loss rate over eleven quarters (Q1 2015 through to Q3 2017), multiplied by the TTM average commercial loans receivable balance as of Q3 2017. “Forecasted 2018 normalized adjusted opex” excludes certain non-cash items such as amortization and dep., stock based compensation, & certain non-recurring expenses. “Calculated operating income” is calculated as per the equation of the inputs illustrated above, and is subject to risks and uncertainties with no assurance given that any of the events anticipated by such pro-forma will occur.

Turning the corner to profitability

Adjusting IOU’s TTM results reveals a profitable Company

based on the following assumptions.

Reversion to mean + implementation of

proactive credit improvement strategies

Interest expenses remain

unchanged

Anticipated adj. opex: $1.6M per

quarter

Table set for sustainable,

profitable growth

in m

illio

ns

(C$

)

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Proven & experienced team

Phil Marleau, CFA CEO

Formerly equity research at Merrill Lynch, CSFB, Scotia Capital

Robert Gloer President & COO

Formerly SVP East Region at First Franklin Financial

David Kennedy, CPA, CA CFO

Formerly CFO at Dale Parizeau Morris Mackenzie & CFO at Mirabaud Canada

Madeline Wade VP, Operations

Formerly underwriting at First Franklin Financial

Jeff Turner VP, Credit & Compliance

Formerly VP & Branch Manager at First Franklin Financial

Mark Schrews VP, Wholesale

Former nuclear weapons technician at US Navy & broker at Metro Brokers

Christophe Choquart, MBA VP, BD & Strategic Partnerships Formerly institutional equity sales

at Bear Stearns & Lehman Bros

Benjamin Yi, CFA Corp Dev & Capital Markets

Investment professional formerly at Dundee Corp & 1832 Asset Management

14

IOU represents a very compelling investment opportunity.

• IOU is on the brink of profitability

– IOU is at a significant turning point having reached break-even status in the course of Q4 2017.

• Very few publicly-traded competitors

– IOU is a good choice for investors seeking exposure to a rapidly growing industry.

• Highly-aligned management team & insiders

– Insiders own 28% of the Company.

Comparables

Source: Company reports, Yahoo! Finance

Note: TTM refers to “Trailing Twelve Months” as of Q3 2017 for all companies. Share prices displayed reflect closing share prices as of February 5, 2018.

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Online lenders Valuation Price-to-sales ratio Price-to-earnings ratio

Company Ticker Share priceShares

outstandingMarket cap

TTM

RevenuesTTM RevPS Trailing P/S

TTM

Earnings TTM EPS Trailing P/E

Mogo Finance Tech (C$) TSXV:MOGO $4.62 22.3 $102.8 $47.2 $2.12 2.2x -$16.9 -$0.76 -

LendingClub (US$) NYSE:LC $3.62 414.9 $1,501.8 $548.6 $1.32 2.7x -$94.1 -$0.23 -

On Deck Capital (US$) NYSE:ONDK $4.31 73.3 $315.8 $169.9 $2.32 1.9x -$52.5 -$0.72 -

Peer group average - - - $640.1 - $1.92 2.3x - - -

IOU Financial Inc. (C$) TSXV:IOU $0.115 87.8 $10.1 $18.1 $0.21 0.6x -$4.8 -$0.05 -

IOU Financial Inc.

Corporate Presentation February 2018 For more information, please contact:

Benjamin Yi, MFin, CFA Corporate Development & Capital Markets

Email: byi@ioufinancial.com

www.ioufinancial.com