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Academy of Social Sciences Ranked 100 P2P Companies: Niwodai is at the Top 10 Nationwide

  July 21, 2017  

Recently, the research group of the Chinese Academy of Social Sciences released the "Risk Rating and Analysis Report on China's Internet Financial Platform" (referred to as the "Report") for 2016. Niwodai ranks very high in terms of liquidity and compliance. Overall, Niwodai is among the top 10 platforms nationwide.

A total of 100 representative online lending platforms in China were selected as subjects. They were classified based on their geographical locations. The assessment data is from January 2016 to December 2016, and the rating criteria consists of the level of credit risk, liquidity risk, legal compliance risk, and operational risk.

An oligopoly of sorts in the P2P lending industry has emerged

With the tightening of rules and regulations around P2P firms in 2016, the industry has accelerated the shuffling trend. Many platforms that are too small or too risky have exited the industry. On the other hand, platforms that fully complied with the new regulatory policies and platforms that are big enough to handle volatilities continue to grow and strive.

The report shows that since December 2015, the number of online lending platforms in China has been decreasing month by month. As of December 2016, the number of platforms was 2,448, down 28.7 percent from the same period a year earlier. As of May 2017, the number of platforms dropped further to 2,148, a decline of 300 from the beginning of 2017.

Compared with last year's rating, the platforms that entered this year's contest are very different. The Matthew Effect of the online lending industry becomes increasingly intensified, and an oligopoly of sorts in the P2P lending industry has emerged.

As a leader, Niwodai's cumulative turnover is over 50 billion yuan

Industry competition is the redistribution of resources, only large-scale, efficiently operating, low-cost platforms could survive in the competition.

Niwodai always adheres to the principle of "small amount for diversification." Niwodai follows government regulations regarding risk control and compliance. The platform strictly obeys the 200,000 personal loan limitation and timely discloses all necessary information to ensure transparency. At present, Niwodai's average loan amount is 27,100 yuan per person.

The reason why Niwodai is so popular among borrowers and investors is because of three risk-defense mechanisms. First, divide the user group. If a person falls into a category that has high risk, even if the loan can bring profits to the company, the platform will not approve the loan. Second is the use of big data credit to audit the borrower's credit. Niwodai has established cooperative relations with several credit agencies in the market to conduct multi-dimensional audits to exclude potential users with high risks. Lastly, establish a strict internal control mechanism. As early as 2014, Niwodai established an internal control compliance department to prevent systemic fraud and irregularities.

A lot of lending platforms are still losing money

The report concludes by emphasizing that many platforms in the industry have not yet experienced a full lending cycle, and most platforms have not achieved profitability. With a foreseeable stronger regulatory environment, the industry's deep shuffling and adjustment is far from over.

Niwodai is one of the few platforms that is profitable.

The 2016 annual report shows that the company achieved operating income of nearly 667 million yuan, an increase of 783 percent over the previous year. Net income of Niwodai is nearly 65 million yuan, an increase of nearly 500 percent over the previous cycle.

With industry supervision gradually increasing, the industry entry threshold for online lending platforms will be greatly improved, and the market order will be further standardized. Niwodai will continue to follow the compliance guidelines while at the same time it will strive for innovation and excellency.

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