SHANGHAI, July 10, 2017 /PRNewswire/ -- China Rapid Finance Limited ("China Rapid Finance" or the "Company") (NYSE: XRF), a leading online consumer lending marketplace, today announced that it has achieved a new milestone of 20 million cumulative loans facilitated on its platform since inception.
This milestone demonstrates accelerating growth of China Rapid Finance's consumer lending marketplace, as the total number of facilitated loans has nearly doubled within only the past six months from 10.7 million cumulative loans as of the end of 2016. On a year-over-year basis, second quarter facilitated loans jumped by over 350% to more than 5 million, up from approximately 1.1 million loans in the same quarter of last year.
China Rapid Finance also continues to achieve a high rate of customer retention. Approximately 73% of borrowers on its marketplace were repeat borrowers as of March 31, 2017. The Company expects that its lower cost of acquiring borrowers, higher customer retention rate, and larger loan sizes for repeat customers will contribute to its long-term sustainable growth.
"We are well on track to continue expanding our platform as we serve the needs of our target Emerging Middle-class, Mobile Active consumers (EMMAs). They clearly enjoy our proprietary digital credit solutions," said Dr. Zane Wang, Chairman and Chief Executive Officer of China Rapid Finance. "Our 'low and grow' strategy starts out new borrowers with smaller, shorter-term loans and then selectively offers larger, longer-term loans to repeat borrowers that demonstrate positive credit behavior. We are well-positioned to scale with a low borrower acquisition cost of retaining high-quality EMMAs as they build their credit histories on our platform, and have the potential to serve their lifetime credit needs. As a result, our 'low and grow' model creates high customer lifetime value and a source of sustainable growth for the Company."
"In addition, PRC regulators have launched efforts to maintain high standards in the fast-growing online lending industry, to eliminate non-compliant industry players and thus to build a stable, sustainable, and healthy environment in which compliant and responsible companies will be able to thrive and grow," Dr. Wang said. "We welcome these initiatives and believe they will benefit the industry leaders such as China Rapid Finance."
China's estimated population of 500 million EMMA, who have no credit histories and substantial difficulty borrowing money from traditional banks, constitutes one of the world's largest untapped consumer credit market opportunities. The Company's differentiated "low and grow" strategy and proprietary technologies are enabling it to acquire these customers efficiently by the millions. However, China Rapid Finance seeks not merely to facilitate loans, but rather build a lifetime relationship with EMMAs.
As a pioneer in consumer credit technologies based on machine learning and big data algorithms, China Rapid Finance has developed proprietary capabilities over the past 16 years to analyze non-traditional and unstructured data from its multiple data channels. Its advanced data-driven credit assessment technologies include predictive selection technology, credit scoring technology, and automated decisioning technology. This technology advantage and vast data access enable the Company to efficiently identify and acquire the prime and near-prime EMMAs at larger scale and lower risk, making China Rapid Finance one of the world's most affordable and scalable consumer lending platforms.
About China Rapid Finance
China Rapid Finance (NYSE: XRF) operates one of China's largest consumer lending marketplaces in terms of total number of loans. On April 28, 2017, the company held its initial public offering on the New York Stock Exchange. For more information, please visit http://chinarapidfinance.investorroom.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "may," "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations from management in this announcement, China Rapid Finance's financial outlook as well as China Rapid Finance's strategic and operational plans contain forward-looking statements. China Rapid Finance may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Rapid Finance's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: unexpected difficulties in China Rapid Finance's pursuit of its goals and strategies; the unexpected developments, including slow growth, in the consumer lending market; reduced demand for, and market acceptance of, China Rapid Finance's products and services; difficulties keeping and strengthening relationships with borrowers or investors; difficulties of expanding data and channel partnerships; potentially costly servicing activities; competition in the consumer lending market; PRC governmental regulations and policies; and general economic and business conditions in the regions where China Rapid Finance operates. Further information regarding these and other risks is included in China Rapid Finance's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and China Rapid Finance undertakes no duty to update such information except as required under applicable law.
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SOURCE China Rapid Finance