Fintech
LexinFintech Wins The Asian Banker Award for Best Lending Technology in China
LexinFintech Holdings Ltd. (“Lexin”) (NASDAQ: LX), a leading fintech platform for educated young adults in China, has been awarded the Best Lending Technology Initiative, Application or Programme in China by The Asian Banker, whose awards are seen as undisputed benchmarks measuring the performance of the best banks and fintech companies in Asia.
“The technology combination of big data and artificial intelligence (AI) adopted by Lexin to assess customers’ creditworthiness has enabled the company to develop a risk management system that can automatically handle 98% of all loan applications while maintaining a charge-off rate of under 2%,” The Asian Banker commented.
Behind the technological achievement is Lexin’s heavy investment into research and development (R&D). Lexin’s R&D expenses increased by 37.8% year-on-year to RMB93.8 million, representing approximately 25% of Lexin’s total operating expenses in the first quarter of 2019. Every one out of three employees at Lexin works for the company’s R&D and risk management teams.
The investments into technology enables Lexin to tap into China’s burgeoning fintech sector by creating a more efficient lending process. It also allows Lexin to assess the creditworthiness of tens of millions of educated young adults who have been underserved by traditional financial institutions because of a lack of credit history.
AI and big data play a pivotal role in enhancing financial efficiency
Lexin incorporates advanced technologies, including AI, big data, and cloud computing, into every step of the transaction process. This helps the company to streamline the traditional loan applications, making it possible for Lexin customers to complete a credit application on the company’s APP within just a few minutes without having to submit a significant amounts of paperwork.
The company leverages its proprietary risk management system Hawkeye, which can process more than 1,000 decision rules and over 7,500 data variables, to generate a credit assessment of each customer within seconds. This has reduced the headcount of Lexin’s loan review team by 40% while the number of loan applications on its platform has surged 70 times in the past few years.
Lexin then matches the approved loan requests with more than 100 institutional funding partners through the company’s Wormhole system in real time, minimizing manual approvals by its funding partners, and instantaneously allocates funding needs to various funding sources with different risk-and-return parameters.
The customers approved for credit lines on Lexin platform can receive funds within a few minutes following their applications – a process which can otherwise take weeks in the traditional financial system.
Lexin has continuously improved its operating efficiency through technology. Its IT cost for per loan application has been reduced to 10% of that of traditional financial institutions. The company’s operating expenditure as a percentage of loan balance has steadily declined from 17.3% in 2015 to 4.5% in the first quarter of 2019.
An anti-fraud system that prevents over RMB30 million worth of monthly losses
As part of the risk management process, Lexin adopts an anti-fraud model to both identify individual fraud and to spot collusion and patterns among multiple individuals, which has become increasingly the focus of anti-fraud efforts in the region.
AI-backed anti-fraud technologies include Complex Networks, which evaluates the possibility of fraud by analyzing the connections between customers based on a wide range of metrics including shared devices, Wi-Fi networks, and contact lists, and User Behavior Risk Analysis, which quantifies the levels of risks based on customers’ behaviors on Lexin’s platform including the initial sign up and changes in devices.
With these technologies in place, organized fraud involving more than 50 individuals have all but been eliminated on Lexin’s platform since the beginning of this year. Lexin has prevented over 2,000 cases of fraud last year, representing savings of an average of over RMB30 million worth of losses per month for the company’s customers. This is reflected in Lexin’s stable credit quality, with its 90 day+ delinquency ratio remaining low at 1.42% as of March 31, 2019.
The Asian Banker awards are generally viewed by executives as one of the most rigorous, prestigious and transparent financial awards in Asia. Lexin was one of over 150 applications that The Asian Banker’s research team spent over 3 months reviewing and investigating before making the final decisions. Previous winners of the award include world-renowned financial institutions such as Standard Chartered Bank, Citi Group and ICBC.
SOURCE LexinFintech Holdings Ltd.
Plug and Play, a global accelerator platform and one of the most active early-stage investors globally, has announced a strategic partnership with Gujarat International Finance Tec-City (GIFT City). Through the partnership, Plug and Play will establish and run the International Fintech Innovation Hub (IFIH), GIFT City’s FinTech Incubator and Accelerator, which aims to foster research and innovation in financial technology, reinforcing GIFT City’s role as a premier global fintech hub.
GIFT City’s MD and Group CEO, Mr. Tapan Ray, said, “Our vision at GIFT City is to drive fintech innovation by creating a climate-resilient, inclusive ecosystem that empowers diverse entrepreneurs and builds workforce competitiveness in emerging technologies. With the support of prominent partners in fintech education and incubation, we are committed to nurturing a new generation of talent that will be well-equipped to meet the needs of an evolving global economy.”
Manav Narang, Head of Financial Services for Plug and Play APAC and Program Lead for the GIFT Incubator and Accelerator added, “We are thrilled to bring Plug and Play’s global expertise to GIFT City. Our vision is to create India’s largest industry-wide fintech program – a collaborative platform where banks, payments corporations, venture capital and corporate venture capital firms, accelerators, and ecosystem partners unite. Together, we aim to catalyze transformative fintech solutions and nurture fintech unicorns that will shape the future of finance in India.”
The program will support fintech startups with resources, mentorship, capital, and networking to navigate and excel globally in the dynamic fintech landscape. The first batch of startups will be unveiled in January 2025.
The post Plug and Play and GIFT City Launch “IFIH,” a Global Fintech Incubator and Accelerator appeared first on .
Doo Group’s brokerage brand, Doo Financial is thrilled to announce its expansion into Indonesia by acquiring a reputable Indonesian broker to expand the business. This move brings its global investment services to local investors. Backed by the strength of Doo Group’s extensive international presence, cutting-edge technology, and 10 years of expertise, Doo Financial is well positioned to support investors at every level.
As a brand encompassing investment services offered by various legal entities within the Doo Group, Doo Financial provides a comprehensive range of global brokerage services. This wide range of products empowers investors to pursue their financial goals.
With a diversified portfolio, Doo Financial empowers investors to navigate various market conditions effectively, manage risks, and focus on long-term growth. This entry into the Indonesian market reflects Doo Financial’s commitment to supporting investors with flexible, high-quality investment options tailored to today’s dynamic financial landscape.
Supervision by International Regulatory Institutions to Ensure Top-Tier Safety
As a global leading finance group, Doo Group has licensed entities regulated by top regulatory authorities worldwide, ensuring a secure and reliable trading environment.
Our global credentials include licenses from the U.S. Securities and Exchange Commission (US SEC), the Financial Industry Regulatory Authority (US FINRA) in the U.S., the Financial Conduct Authority (UK FCA) in the UK, the Australian Securities and Investments Commission (ASIC), the Hong Kong Securities and Futures Commission (HK SFC), Badan Pengawas Perdagangan Berjangka Komoditi (BAPPEBTI) in Indonesia. These licenses enable us to provide secure and reliable financial services globally.
Dedication to Shape the Industry with Innovative Solutions
Doo Financial’s expansion into Indonesia brings advanced technology and a global perspective to empower local investors. As an international investment firm committed to secure and seamless trading, Doo Financial offers a diverse range of products and services to help diversify portfolios and open up new opportunities.
This growth elevates opportunities for Indonesian investors by offering seamless access to global markets and advanced trading platforms within a secure and regulated environment. It broadens investment choices and enhances the trading experience, aligning it with international standards and empowering local investors with comprehensive tools and resources for success.
Driven by unwavering commitment, this growth marks a significant milestone in Indonesia’s investment landscape, equipping our clients with the tools to navigate global markets. We remain dedicated to delivering exceptional service, exploring new opportunities, and driving future breakthroughs. With continued support from the FinTech community, we are excited to innovate and shape the future of finance.
Stay updated with the latest insights from Doo Financial. Join our community of empowered investors and let us be your trusted partner!
E-mail: [email protected]
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Fintech is on an accelerated trajectory of investment, collaboration, and innovation. This pulse tracks the most significant developments in the sector, from high-profile investments to global platform expansions. Each update in this briefing serves as a key indicator of where the industry is headed.
1. European Fintechs Face Regulatory Pressures Amid New Investment Surge
The European fintech sector finds itself at a crossroads with increasing scrutiny and rising costs due to stringent regulations. While investments continue to flow into the continent’s financial technology companies, challenges in meeting new compliance requirements, especially around data privacy and cybersecurity, create a complex landscape for scaling. This tension between opportunity and operational limitations might affect European fintechs’ growth strategies.
Source: Financial Times
2. Shopify, Slack Founders Join Peter Thiel in Fintech Investment Push
Tobi Lütke of Shopify and Stewart Butterfield of Slack, along with investor Peter Thiel, have co-invested in a new fintech initiative that aims to bolster small business access to capital. By merging technology with a streamlined funding model, this new initiative targets underserved SMBs, highlighting a broader trend of high-profile tech leaders pivoting to fintech investment. The participation of Lütke and Butterfield signals increased cross-sector collaboration in fintech, bringing expertise from e-commerce and communication technology into the financial arena.
Source: Yahoo Finance
3. Lean Technologies Raises $67.5 Million to Drive Fintech Innovation in the Middle East
Riyadh-based fintech platform Lean Technologies recently secured a $67.5 million Series B investment round, aiming to expand its operations across the Middle East. This funding reflects growing investor interest in emerging markets and the potential of Middle Eastern fintech to bridge regional gaps in financial services access. As Lean Technologies broadens its service offerings, the funding will support further technological integration and scalability across financial ecosystems in the region.
Source: Fintech Global
4. Apollo Global Management Invests in Fintech for Private Offerings Support
Apollo Global Management has taken steps to enhance its services for private offerings by investing in specialized fintech solutions. This development signifies a growing trend among private equity firms to adopt fintech as a core component in their service expansion, particularly for personalized client services. Apollo’s strategy of integrating fintech solutions into private offerings marks a strategic shift toward digitalization within traditional financial sectors.
Source: Bloomberg
5. Juniper Research Names 2025’s Future Leaders in Fintech
Juniper Research has revealed its picks for the top future leaders in fintech for 2025. This list emphasizes innovation in fields such as AI, open banking, and decentralized finance, highlighting startups that exhibit potential for reshaping industry standards. As these up-and-coming firms push the boundaries of traditional finance, they exemplify the rising tide of next-generation financial technology poised to become industry mainstays.
Source: Globe Newswire
Conclusion
The convergence of seasoned tech giants with fintech, new funding rounds for region-specific platforms, and the rise of future industry leaders underscore the momentum of the fintech sector. Each of these stories reflects a broader narrative: fintech is not only diversifying in services but also rapidly integrating into traditional finance and tech, paving the way for a transformative era.
The post Fintech Pulse: Evolving Fintech Investments and Partnerships Signal Industry Transformation appeared first on HIPTHER Alerts.
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