LexinFintech Announces New Partnerships, Projects Beyond Consumer Finance
The Shenzhen-based company hosted Lexin Partner Conference 2019 this week, bringing together financial institutions and FinTech players as it aims to expand beyond consumer finance.
LexinFintech Holdings Ltd. (Nasdaq: LX), a consumer lending platform for China's youth, announced an array of new projects, services, and partnerships on Friday at its annual conference.
The Shenzhen-based company hosted Lexin Partner Conference 2019 this week, bringing together financial institutions and FinTech players as it aims to expand beyond consumer finance. Specifically, LexinFintech plans to establish a new team to provide FinTech services to its financial partners, according to a statement by its chief executive officer, Jay Wenjie Xiao.
"Lexin started as a consumer finance platform, but we are looking forward to going beyond that. We will continue to focus on our customer cohort, the educated young adults, and cater to their consumption needs by offering even more relevant services," Xiao said.
Lexin's CEO Jay Xiao at the annual conference
Young adults, the "Generation Z," are the target group of Lexin. In its statement, the company said it relies on this generation as it was born to "better-off" families and has "stronger consumption needs and care more about the quality and distinctiveness" of the products. They are the "backbone of the consumer finance market," the company stated.
As Lexin caters to the demands of China's youth, it has announced the launch of Le Card, an app that provides discounts on products like movie tickets and coupons to KFC. It also plans additions to the services available on Fenqile, Lexin's e-commerce platform, like offering flight tickets and training.
LexinFintech also announced it has arranged partnerships with 19 financial institutions that will provide funding while it "will leverage its technological capabilities in customer acquisition, operations, risk management, and fund matching to jointly serve the educated young adult market."
Among the institutions are Industrial and Commercial Bank of China, PICC Group, China Minsheng Bank (CGMBF), and Shanghai Pudong Development Bank.
Lexin said, by the end of 2018, it was collaborating with more than 100 financial institutions, who provided funding for 70 percent of its loans in the fourth quarter.
The company said its loan facilitation and servicing fees increased by 448 percent to 2.1 billion yuan in 2018 from 379 million yuan in 2017.
On Thursday New York, before the markets closed for Good Friday, the stock of LexinFintech closed at $14.43 per American depositary share, up more than 4 percent on the day.