SAN FRANCISCO, April 9, 2018 /PRNewswire/ -- LexinFintech
Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX), a leading
online consumer finance platform for educated young adults in
China, today attended LendIt
Fintech USA 2018, where its Chief
Risk Officer gave a speech highlighting the ways that technological
innovation is transforming China's
consumer finance market.
In the next five years, the financial industry will be
revolutionized as customer service is handled almost completely by
artificial intelligence, Lexin's Chief Risk Officer Ryan Liu told LendIt Fintech USA in an address titled "Unlocking China's
Consumer Finance Opportunity with Fintech Innovation." The industry
will shift to automation of 99.99 percent of loan orders, and 90
percent of loan collections, he said.
While China's consumer finance
market remains significantly underpenetrated, such innovations in
financial technology, and the expanding use of installment
payments, are making credit a way of life, Liu told LendIt Fintech.
These innovations are allowing China's consumers to buy on credit anywhere,
at any time, for anything from health and beauty products, to
travel, buying a car or medical care, he said.
Total unsecured consumer loans were still just 9% of
China's GDP as of 2016, compared
to 15% of GDP in the US market, Liu told LendIt Fintech.
Outstanding consumer finance loans per capita in China are just 4,082 Renminbi ($653), a fraction of the approximately
$8,500 U.S. loan per capita figure,
Liu said.
There remains a huge mismatch between the income and consumption
needs of young, educated people in China, Liu told LendIt Fintech. Traditional
financial institutions in China
have been unable to serve this young market, due to the lack of
credit infrastructure in a nation where only 28% of the population
has any kind of credit rating, he said. There are 86 million
educated young adults between ages 18-30 in China, which is equal to about 25% of the
total US population, and that figure is expected to exceed 100
million in the next 10 years, Liu said.
To tap this opportunity, and meet the consumer finance needs of
this underserved segment, Lexin launched its Fenqile platform in
2013, part of an efficiency revolution in China driven by financial technology. Lexin's
technology can make credit assessment with information not deployed
by traditional institutions, while offering a superior
user experience, Liu said.
Since Lexin launched Fenqile in 2013, installment payments have
become a common practice among e-commerce platforms in China, Liu told LendIt Fintech. While others
have followed, Lexin has become the leading online consumer finance
platform for educated young adults in China, with 24 million registered users at the
end of last year, Liu said.
Lexin serves a customer cohort of educated young adults in
China that represents high growth,
high income potential, high consumption needs, and a strong desire
to build a credit profile, Liu told LendIt Fintech. Lexin captures
this sweet spot of the China
online consumer finance market by leveraging the tremendous
opportunity in loans to educated young adults, who represent
balance between risk and return, Liu said.
The expansion of consumer finance in China is being driven by technology:
Artificial Intelligence, Big Data, Cloud Computing, and Blockchain,
Liu told LendIt Fintech. Lexin's Hawkeye automated credit approval
engine uses over 1,000 decisioning rules and more than 5,000
potential data variables to arrive at an approval decision and
credit line amount within seconds, and this technology allows Lexin
to handle 95% of loan applications automatically, he said. Lexin's
advanced and customized credit risk management, and data-driven
customer behavior and risk profiling, allow the company to offer
better loan terms to its users, Liu told LendIt Fintech.
For its investors and partners, Lexin offers efficient capital
deployment through its Wormhole System, which connects customers
and funding partners in real time, Liu said. The Wormhole System
allocates to funding sources based on their risk parameters, and
sends qualified customer loans to funding partners for final
approval, he said.
The trend of technological innovation driving the expansion of
consumer credit will only quicken with the application of biometric
technologies, like iris and voiceprint recognition, which will
replace lengthy application processes, while also reducing fraud,
Liu told LendIt Fintech.
Lexin is a Silver sponsor of LendIt Fintech USA 2018, the world's leading event in
financial services innovation, which is being held at Moscone West
in San Francisco from April 9 to 11.
About LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. is a leading online consumer finance
platform for educated young adults in China. As one of China's leading financial technology
companies, Lexin integrates its e-commerce-driven installment
finance platform, Fenqile, with advanced risk management
technologies, the Company's Dingsheng asset distribution technology
platform, and the Company's Juzi Licai online investment
platform for individual investors, to create a comprehensive
consumer finance ecosystem. The Company utilizes technologies
including big data, cloud computing and artificial intelligence to
enable the near-instantaneous matching of user funding requests
with offers from the Company's more than 30 funding partners, which
include commercial banks, consumer finance companies, and other
licensed financial institutions.
For more information, please visit
http://ir.lexinfintech.com
To follow us on Twitter, please go to:
https://twitter.com/LexinFintech
For media inquiries, please contact:
LexinFintech Holdings Ltd.
Limin Chen
Tel: +86 (755) 3367-8888 ext. 6993
E-mail: liminchen@lexinfintech.com
ICR Inc.
Edmond Lococo
Tel: +86 (10) 6583-7510
E-mail: Edmond.lococo@icrinc.com
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SOURCE LexinFintech