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.
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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