SAN FRANCISCO–(BUSINESS WIRE)–China is one of the largest and fastest-growing online lending markets in the world, China Rapid Finance Limited’s (“China Rapid Finance”) Chief Executive Officer, Dr. Zane Wang, told the LendIt USA 2016 conference in San Francisco, California.
“Compared with the online lending market in the U.S., China is much more exciting”
The China market has huge potential and growth opportunities, driven by the basic credit needs of its emerging middle class, Dr. Wang told LendIt, the largest annual gathering for the global online lending community. The company sees the primary opportunity in targeting a segment that it has defined as Emerging Middle-class, Mobile Active consumers, or EMMAs.
“Compared with the online lending market in the U.S., China is much more exciting,” Dr. Wang told LendIt, which ended today. “China represents a huge, untapped market.”
Tapping into that market requires a unique business model due to the huge number of individuals who have no credit history in China. Of China’s 1.4 billion people, the central bank database as of the end of 2014 covered around 800 million, of which roughly 300 million people had credit records. That leaves about 500 million people who do not have access to credit. For this enormous EMMA population, traditional borrower acquisition mechanisms based on credit behavior data will not work in China, Dr. Wang said.
Facing this fundamental challenge, the key to the online lending business in China becomes how to drive large-scale, low-cost customer acquisition, Dr. Wang said. China Rapid Finance has applied its unique technology to solve this problem.
China Rapid Finance partners with some of China’s largest Internet platforms to build multiple channels of data. The company then uses Big Data algorithms to analyze the unstructured data from its partners. By applying China Rapid Finance’s predictive selection technology and automated decisioning technology, it is able to generate a pre-selected list of qualified borrowers.
About China Rapid Finance
China Rapid Finance Limited began its operations in 2001, and is the largest online consumer lending marketplace serving China’s emerging middle class in terms of total number of loans. China Rapid Finance is a recognized innovator with a proprietary Big Data analytics technology platform. The Company has a proven track record in credit risk management and transparency, and has facilitated more than 4.7 million loans, as of Dec.31, 2015.
Posted: April 13, 2016