FinVolution Group (formerly known as “PPDAI,” or the “Company”) (NYSE: FINV), a leading fintech platform in China, today announced the completion of an equity investment in Fujian Haixia Bank (“FHB”).
Pursuant to the share purchase agreement, FinVolution Group has subscribed for 281 million of newly issued shares of FHB which accounted for approximately 4.99% of FHB’s total issued shares at the closing of this transaction.
Concurrent with the equity investment agreement, FinVolution Group and FHB entered into a strategic partnership, such that both parties will cooperate with a focus on consumer finance to amplify efforts to enhance operating efficiencies, expand markets, improve credit risk management capabilities and enhance operation capabilities in addition to other activities.
Founded in 1996 and headquartered in Fuzhou, China, FHB has a network of 73 branches and sub-branches across Fujian province and four branch outlets in Zhejiang province. FHB offers a wide spectrum of financial services to individuals, SMEs, corporates and institutions across these regions. As of December 31, 2018, FHB had total assets of approximately RMB153.1 billion, total customer deposits of RMB76.9 billion, and outstanding customer loans of RMB65.7 billion.
“We are excited about the synergies created through our strategic investment and partnership with FHB,” said Mr. Feng Zhang Co-Chief Executive Officer of FinVolution Group. “Our businesses are highly complementary, and we look forward to the launch of new growth engines while strengthening our ability to service financial institutions. Additionally, this investment and partnership present the opportunity for us to explore broad areas of cooperation that will help both FinVolution and FHB in business expansion, enhancing operating efficiencies, and improving risk management. Through leveraging our technologies-as-a-service, we believe this long-term partnership with FHB will solidify FinVolution’s leading position in the industry and accelerate our cooperation with commercial banks and other financial institutions.”
SOURCE FinVolution Group