SHENZHEN, China, Nov. 06, 2020 (GLOBE NEWSWIRE) — LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading online consumption and consumer finance platform for educated young professionals in China, is gearing up to expand its product offerings to tap the rising consumption demand of China’s new generation, who have become the backbone of the Chinese consumer market, said Jay Xiao, CEO of LexinFintech.
Xiao unveiled the company’s strategy to go beyond consumer finance and into broader consumption services with a series of products including the Le Hua Card, a credit service that can be used in online and offline consumption scenarios, and the membership platform Le Card, when speaking at Hong Kong Fintech Week on November 4.
“Lexin’s initial goal was to serve young Chinese consumers, and our business strategy has constantly been evolving to capture the immense potential of this market,” said Xiao.
Lexin started as a consumer finance platform when it launched Fenqile, an installment e-commerce service, in 2013. Fenqile saw its user base reach 100 million in August 2020.
To further penetrate China’s consumer finance market, Lexin then rolled out the Le Hua Card, enabling its customers to use their credit lines obtained from Lexin in numerous online and offline consumption scenarios, ranging from ride-hailing to dining and entertainment.
In the second quarter of 2020, Le Hua Card’s transaction volume increased by 400 percent year-on-year and facilitated transactions for over 4 million vendors in the single quarter. In the second half of 2019, only half a year after launch, Le Hua Card had already accounted for 20-30 percent of Fenqile’s total loan originations and is expected to contribute even more in the future.
With the rapid growth of Le Hua Card, Lexin’s full-year loan originations are expected to reach RMB 170-180 billion in 2020, roughly the same size as the GDP of Iceland. China’s consumer finance market is projected to grow to US$1.6 trillion by the end of 2020, equivalent to the GDP of Mexico.
On top of consumer finance, Lexin is expanding into the broader consumer market by rolling out Le Card, a digital membership service offering benefits and privileges covering major video-streaming platforms, on- demand delivery services, franchised hotels, cinemas, among many other consumption scenarios.
With its AI-driven recommendation technology, Le Card can improve user engagement and the stickiness of its partner vendors, which includes hundreds of well-known brands such as Walmart, JD, KFC, and Taobao.
Consumption has become the main driver of China’s economic growth. China’s final consumption expenditure contributed 57.8 percent to its GDP growth in 2019, which represented an increase of nearly 10 percentage points from 48 percent in 2010.
Young Chinese consumers play a vital role in the growth. While only 23 percent of China’s population are under 30 years old, this young group accounted for 60 percent of the online shoppers during the 2019 Singles Day Shopping Festival, according to Baidu.
“We’ll continue to innovate in the consumption methods as well as continue to expand the scenarios available, to help China’s emerging young consumers spend better and spend rationally,” said Xiao.
About LexinFintech Holdings Ltd.
LexinFintech Holdings Ltd. is a leading online consumption and consumer finance platform for new generation consumers in China. The Company provides a range of services including financial technology services, membership benefits, and a point redemption system through its ecommerce platform Fenqile and membership platform Le Card. The Company works with financial institutions and brands both online and offline to provide a comprehensive consumption ecosystem catering to the needs of young professionals in China. Lexin utilizes advanced technologies such as big data, cloud computing and artificial intelligence throughout the Company’s services and operations, which include risk management, loan facilitation, and the near-instantaneous matching of users’ funding requests with offers from the Company’s many funding partners.
For investor and media inquiries, please contact:
LexinFintech Holdings Ltd.
Tel: +86 (755) 3637-8888 ext. 6258
Tel: +86 (755) 3637-8888 ext. 6993
SOURCE LexinFintech Holdings Ltd.