SHANGHAI, March 19, 2015 /PRNewswire/ — China Rapid Finance (“CRF”), a leader in China’s lending and credit decisioning market, today announced that it has extended pre-approved loan offers for 500RMB (~US$80) to 50 million consumers, including prequalified users on QQ, Tencent’s leading social networking platform with 820 million users, and customers of chinese union salary, the leading payment network in China. To inform users of their new borrowing opportunity, CRF launched a national mobile marketing campaign this week which will be followed by a poster campaign.
Designed to reach Chinese consumers when traveling for the New Year, nearly 600 billboards will be placed at stations in 14 major cities across the country. The Chinese Ministry of Transport predicts that more than 2.8 billion one-way trips will be made during the Chinese New Yearthe peak travel period in February and March. About 300 million people are expected to travel by train.
New pre-approved borrowers are also notified via SMS and promotional messages when they access QQ through their mobile app or PC browser. The CRF initiative this week will mark a first in Chinawhere most people don’t have a credit score and are therefore difficult to pre-qualify.
“We are delighted to work with leading Chinese companies such as Tencent and chinese union salary to provide 50 million QQ users with what for most will be their first-ever opportunity to borrow money,” said China Rapid Finance Founder and CEO Zane Wang, doctorate. “Those who accept the loans will not only benefit from affordable financing, but also the opportunity to build a credit profile that will serve them well in the future.”
More than 78% of Chinese do not have access to credit, according to the People’s Bank of China. In addition, consumer credit penetration, excluding mortgages, is only 2% of Chinese GDP according to Euromonitor. This compares to about 18% in United States.
“The biggest trigger for Chinese consumer credit is the lack of accurate information on which to base lending decisions,” said Joe Zhangauthor of At the Heart of China’s Shadow Banking System: The Next Subprime Crisis? “Combining CRF’s analytics-based lending capabilities with QQ user data from Tenpay and other leading companies is revolutionary in the industry and provides the foundation for strong lending offerings.”
The 50 million loan offers offered by CRF are the result of a sophisticated proprietary analysis of social and financial information available online and offline, designed to predict default rates, limit fraud and estimate borrower responses to the offer. They follow a successful 3-month test started in November 2014 during which CRF granted 50,000 loans to Tenpay users.
“Early results from our new loan offerings to 50 million pre-approved borrowers have been overwhelmingly positive,” Wang reported.
The new FRC lending program was developed with advice from Nigel Morris, managing director of QED Investors, co-founder of Capital One and CRF investor and advisor. This is the first time a company in the world has offered pre-approved loans that require no application and no waiting time between loan application and cash availability.
“Nowhere in the world have I seen a mobile-based pre-approved credit solution of this scale or technological innovation,” Morris said. “The data-driven screening strategy that CRF and Tencent applied reminds me of the winning approach we implemented at Capital One, albeit successfully adapted to China’s scarce credit environment. Together, the CRF and Tencent are pioneers in China’s ongoing transformation to a credit-based society.”
Founded in 2001, China Rapid Finance has created the country’s first Chinese language-enabled credit decision engine, driven by its proprietary big data analytics tools, which CRF uses to qualify borrowers on its multi-channel P2P lending platform. . CRF also licenses its credit reporting technology to major Chinese commercial banks. Today, the company operates one of China’s leading online and offline platforms to connect lenders and borrowers.
“The mobile product we’re launching this week is based on elaborate rating systems we’ve developed over the past decade and in 70 cities across China,” Wang continued. “Our goal with our partners is to provide hundreds of millions of ordinary Chinese consumers with their ‘first step’ on the credit ladder, so that one day they can borrow for a car or a house.”
“Soon after evaluating the borrower’s response and repayment results, CRF intends to develop another significant pre-approved loan offering,” said Rex Lv, Head of Policy at credit at China Rapid Finance and former director of analysis for Experian, Asia Pacific.
The current wave of the national advertising campaign will continue until March.
About China Rapid Finance
China Rapid Finance (“CRF”) is a leader in the lending and credit decisioning market in China. With over 4,000 employees and 70 branches, the company has one of the largest offline and online multi-channel lending platforms in the China is built on advanced proprietary big data analytics technology, a proven track record in credit risk management, and a tradition of transparency and regulatory compliance.
Through CRF’s direct distribution channels as well as strategic partnerships with Chinese technology leaders, CRF offers borrowing opportunities to a wide range of Chinese consumers, many of whom are accessing credit for the first time.
Founded in 2001 by CEO Zane Wang, PhD, CRF has played a vital role in transforming the Chinese credit market for more than a dozen years. In 2014 alone, CRF granted over 300,000 loans and established a strategic partnership with Tenpay to provide access to credit to millions of individual borrowers. China Rapid Finance is set to deepen and broaden its leadership in the lending industry in the Chinese market.
The CRF home page is www.crfchina.com.
About DLB Capital
DLB Capital is the lead investor in China Quick funding. DLB Capital is a global investment and advisory firm focused on underserved industries in United StatesChina, India and the Middle East. DLB Capital mainly invests in start-ups and early-stage companies. They are opportunistic investors seeking growth-ready companies who need proven hands-on experience, capital raising expertise, strategic advice and growth planning. Thanks to our many partnerships and contacts, we help companies in all sectors to reach their full growth potential. DLB Capital was founded in 2006 by Douglas L. Brownformer Vice President Investment Banking at Morgan Stanley, and is based in Wilton, Connecticut.
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