LexinFintech Unveils Strategy to Further Tap Chinese Consumer Market at Hong Kong Fintech Week 2020
06 November 2020 - 6:50PM
"LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ:
LX), a leading online consumption and consumer finance
platform for educated young professionals in China, is gearing up
to expand its product offerings to tap the rising consumption
demand of China’s new generation, who have become the backbone of
the Chinese consumer market," said Jay Xiao, CEO of LexinFintech.
Xiao unveiled the company’s strategy to go beyond consumer
finance and into broader consumption services with a series of
products including the Le Hua Card, a credit service that can be
used in online and offline consumption scenarios, and the
membership platform Le Card, when speaking at Hong Kong Fintech
Week on November 4.
“Lexin’s initial goal was to serve young Chinese consumers, and
our business strategy has constantly been evolving to capture the
immense potential of this market,” said Xiao.
Lexin started as a consumer finance platform when it launched
Fenqile, an installment e-commerce service, in 2013. Fenqile saw
its user base reach 100 million in August 2020.
To further penetrate China’s consumer finance market, Lexin then
rolled out the Le Hua Card, enabling its customers to use their
credit lines obtained from Lexin in numerous online and offline
consumption scenarios, ranging from ride-hailing to dining and
entertainment.
In the second quarter of 2020, Le Hua Card’s transaction volume
increased by 400 percent year-on-year and facilitated transactions
for over 4 million vendors in the single quarter. In the second
half of 2019, only half a year after launch, Le Hua Card had
already accounted for 20-30 percent of Fenqile’s total loan
originations and is expected to contribute even more in the
future.
With the rapid growth of Le Hua Card, Lexin’s full-year loan
originations are expected to reach RMB 170-180 billion in 2020,
roughly the same size as the GDP of Iceland. China’s consumer
finance market is projected to grow to US$1.6 trillion by
the end of 2020, equivalent to the GDP of Mexico.
On top of consumer finance, Lexin is expanding into the broader
consumer market by rolling out Le Card, a digital membership
service offering benefits and privileges covering major
video-streaming platforms, on- demand delivery services, franchised
hotels, cinemas, among many other consumption scenarios.
With its AI-driven recommendation technology, Le Card can
improve user engagement and the stickiness of its partner vendors,
which includes hundreds of well-known brands such as Walmart, JD,
KFC, and Taobao.
Consumption has become the main driver of China’s economic
growth. China’s final consumption expenditure contributed 57.8
percent to its GDP growth in 2019, which represented an increase of
nearly 10 percentage points from 48 percent in 2010.
Young Chinese consumers play a vital role in the growth. While
only 23 percent of China’s population are under 30 years old, this
young group accounted for 60 percent of the online shoppers during
the 2019 Singles Day Shopping Festival, according to Baidu.
“We’ll continue to innovate in the consumption methods as well
as continue to expand the scenarios available, to help China’s
emerging young consumers spend better and spend rationally,” said
Xiao.
About LexinFintech Holdings Ltd.LexinFintech Holdings
Ltd. is a leading online consumption and consumer finance
platform for new generation consumers in China. The Company
provides a range of services including financial technology
services, membership benefits, and a point redemption system
through its ecommerce platform Fenqile and membership
platform Le Card. The Company works with financial
institutions and brands both online and offline to provide a
comprehensive consumption ecosystem catering to the needs of young
professionals in China. Lexin utilizes advanced technologies
such as big data, cloud computing and artificial intelligence
throughout the Company's services and operations, which include
risk management, loan facilitation, and the near-instantaneous
matching of users’ funding requests with offers from the Company's
many funding partners.
For more information, please visit http://ir.lexin.comTo
follow us on Twitter, please go
to: https://twitter.com/LexinFintech
For investor and media inquiries, please contact:LexinFintech
Holdings Ltd.IR inquiries:Tony HungTel: +86 (755) 3637-8888 ext.
6258E-mail: IR@lexin.com
Media inquiries:Limin ChenTel: +86 (755) 3637-8888 ext.
6993E-mail: liminchen@lexin.comSOURCE LexinFintech
Holdings Ltd.
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