LexinFintech: Compliance and Fintech Capabilities Have Become the Keys to Growth

SHANGHAI, Sept. 7, 2018 /PRNewswire/ -- LexinFintech Holdings Ltd. ("Lexin" or the "Company") (NASDAQ: LX), a leading online consumer finance platform for educated young adults in China, attended LendIt Fintech China 2018 in Shanghai, where its CEO gave a speech highlighting industry changes and the Company's latest technological innovations.

China's fintech industry, after years of rapid development, has entered a new stage when compliance and fintech capabilities have become the keys to the long-term growth of a company, Lexin's CEO Jay Wenjie Xiao told LendIt China.

"It's like the halftime of a match," he said, referring to the beginning of a new market landscape where there will be more industry consolidation and increasing regulatory clarity.

Compliance will become a competitive edge for industry players and as China is increasingly looking to make consumption the driving force of economic growth, consumer finance providers can play a part by helping consumers enhance their ability to pay, Xiao said.

Consumer finance accounted for 20% of the gross domestic product of the United States in 2017, while the number for China was only 8% in the same period, he said, citing industry figures.

Lexin pioneered a business model combining e-commerce and finance in China through its e-commerce platform Fenqile, which was launched in 2013. As of the second quarter of 2018, the gross merchandise volume of Fenqile amounted to RMB1.5 billion, representing an increase of 53.8% year-on-year.

To capture the long-term potential of China's consumer finance market, Lexin will also continue its investment in technology to improve its risk management capabilities and operating efficiency, continued Xiao.

About one third of Lexin's operating expenses are used in research and development, with the figure reaching RMB147 million in the first half of 2018, an increase of 45% year-on-year.

Lexin's risk management engine Hawkeye, which uses over 1,000 decisioning rules and more than 7,500 data variables to arrive at an approval decision within seconds, allows the Company to handle 98% of loan applications automatically, Xiao said.

He also demonstrated the Company's latest risk management initiatives and innovations, including a location-based fraud detecting mechanism, a complex network that is able to identify the credit risk of a customer based on his/her social graph, and a mechanism to predict the repayment ability of a customer.

As the Company continues to improve its risk management capabilities, Lexin maintains a stable credit risk level with its 90+ delinquency rate at around 1.39% in the second quarter of 2018, Xiao said.

About LexinFintech Holdings Ltd.

LexinFintech Holdings Ltd. is a leading online consumer finance platform for educated young adults in China. As one of China's leading financial technology companies, Lexin integrates its e-commerce-driven installment finance platform, Fenqile, with advanced risk management technologies, the Company's Dingsheng asset distribution technology platform, and the Company's Juzi Licai online investment platform for individual investors, to create a comprehensive consumer finance ecosystem. The Company utilizes technologies including big data, cloud computing and artificial intelligence to enable the near-instantaneous matching of user funding requests with offers from the Company's more than 30 funding partners, which include commercial banks, consumer finance companies, and other licensed financial institutions.

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Limin Chen
Tel: +86 (755) 3637-8888 ext. 6993
E-mail: liminchen@lexinfintech.com

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