GUANGZHOU, China, Nov. 29,
2018 /PRNewswire/ -- China's
consumer finance industry will experience accelerating growth in
the coming years, as the industry stands to benefit from regulatory
support to drive domestic consumption, said CEO of LexinFintech
Holdings Ltd. ("Lexin" or the "Company") (Nasdaq: LX), a
leading online consumer finance platform for educated young adults
in China.
"The industry has experienced enormous growth in the past few
years and we expect this trend to continue," said Mr. Jay Wenjie Xiao, Lexin's CEO, at CNBC's East
Tech West conference in Guangzhou, China.
The Chinese government said in September that it will encourage
innovation in consumer finance and broaden the development of
consumer loans, as the government increasingly looks to make
consumption the driving force of economic growth.
China's consumer finance
market is projected to grow to US$1.6 trillion by the end
of 2020, which is equivalent to the GDP of Mexico,
representing a compound annual growth rate (CAGR) of 18%, according
to market research company Oliver
Wyman. The niche sector of online consumer finance is
estimated to grow even faster, reaching US$417 billion by the same period, with a CAGR of
62%.
"It is not only smartphones, but also smaller ticket items like
a T-shirt or even a pair of shoes, that people have started to pay
with an installment payment service," said Mr. Xiao.
The concept of installment payment is increasingly seen not only
as a way to satisfy an urgent need, but also as a normal method of
shopping, according to a January report published by Lexin, with
support from its e-commerce partners including Apple, Dell,
L'Oreal, and P&G.
In the third quarter of 2018, Lexin saw the gross merchandise
volume of its e-commerce platform Fenqile increase by 33.8%
year-on-year, while China's retail
consumer sales grew at only 9.3% year-on-year in the first nine
months of 2018, according to official data.
Mr. Xiao attributed the growth of consumer financial services in
China to a large untapped market
and advanced technologies that enable fintech players to meet
burgeoning demand, with risk management and a streamlined loan
application process as the keys to success.
In risk management, Lexin has adopted a forward-looking approach
by using a combination of big data and artificial intelligence (AI)
to assess a customer's credit worthiness, which allows the Company
to perform a more comprehensive credit analysis of its customers
than traditional financial institutions.
Lexin's proprietary risk management engine, "Hawkeye," processes
more than 1,000 decision rules and over 7,500 data variables to
generate an assessment within seconds, and automatically manages
98% of all loan applications. It can create in real-time a
customer's latest credit profile and engage in predictive analytics
to understand how this profile may change in the future.
Through the strong use of AI and big data, Lexin is also able to
streamline the traditional process of loan applications, making it
possible for its customers to complete a credit application within
just a few minutes without having to submit excessive paperwork or
become mired in red tape.
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.
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SOURCE LexinFintech Holdings Ltd.