Prompted by the success of electronic banking institutions like Revolut and N26 the group of committed experts has added their very own cost savings and money to start out Lion Lender.

The core team comes with specialists who possess considerable experience in finance, IT, marketing, company development, information safety and legal. They’re originating from worldwide banking institutions, major neighborhood IT businesses, fin-tech company, and digital marketplaces. Lion Lender may be the first faltering step to produce an electronic bank in Russia.

Their objective would be to boost the financial literacy of this regional populace. Everybody else needs simple and access that is convenient economic solutions without borders – worldwide, and comprehend demonstrably all of the advantages and dangers of financial loans.

The organization ended up being started in 2018. Ever since then the group had been taking care of IT-system, marketing research, item development, etc., as well as in 2019 the appropriate entity for procedure company ended up being founded and sales had been launched. Presently, the united team consist of 28 specialists. The mortgage portfolio during the moment is EUR 2 million, with revenues of almost 100 thousand euros.

“Lion Lender” can be a uncommon brand for the company in Russia. The majority that is overwhelming of MFIs brands in Russia are attached to ‘cash’ or ‘money’. The group made a decision to utilize the approach that is european operating the business enterprise and branding. More over, the scientists found that prospective clients are not responsive to the organization title within the short-term loans market. It’ s most critical to own a great item and exceptional advertising. Lion as an icon of security, self- self- confidence, and obligation, that is essential whenever using cash.

How it operates?

The entire process of acquiring new business is fairly directly forward- the prospective client queries for short-term loans on the internet and sees an advertisement on the internet then extends to Lion Lender’s internet site.

Then a client can decide the mortgage quantity additionally the loan term they want. The payment terms are visible immediately. In the event that customer will follow the terms, he then or she fills within the application because of the private information for assessment and scoring purposes. Lion Lender then makes use of its CRM that is own system outside integrations for operating the scoring model.

The outside databases like ‘Scorista’ solution- the Russian Government Digital Services and credit bureau info is essential to come to a decision associated with the application for the loan approval. In the event that loan is authorized, the customer should signal the contract with the electronic signature and from then on, the mortgage is issued in moments towards the client’s bank card or account. Most of the procedures just simply just take lower than 20 mins for brand new customers as well as a shorter time for consistent consumers.

The sophisticated IT system by having a scoring that is external enables approving loans and then accountable borrowers. Also repeated customers feel the scoring system once more. The scoring model is peaceful conservative and rejects significantly more than 90% of brand new applications and over 15% of repeated applications. Lion Lender intends to keep up with the stability between your high development of their company as well as the loan profile quality as time goes by. Nevertheless, if the loan defaults, Lion Lender utilizes certified debt collectors to obtain the loan as well as minimizes the losings. =

Customers

Presently, Lion Lender has clients that are nearly 10K. The mark market is individuals over 30 with family members, who understands what they desire cash for, exactly how much as well as for just how long. They don’t make an application for the absolute most and for a term that is maximum leads to having to pay the mortgage straight straight back reliably as well as on time.

The typical consumer is a family members man/woman, 33 years old with normal earnings around EUR 550, additional or more education, smartphone and internet surfers. The retention price has ended 50% now. In the foreseeable future, they truly are likely to raise the customers that are returning to 75%.

The typical earnings of this clients is fairly high and because of the selected potential audience, the standard price for Lion Lender is leaner compared to the industry average of 15.6per cent. More over, the scoring system is performing its task by keeping the standard price associated with borrowers low. The aim is to retain the standard price during the present degree, since that is a motorist for development in their selected growth strategy.

The merchandise

Presently, just one item exists for investment- the loans that are short-term the income (under thirty day period). The attention price is controlled because of the Central Bank of Russia, the mortgage price is restricted as much as 1% per time (up to 365per cent p.a.). This is certainly in line with all the competition.

Presently, the group is working constantly to give you the chance to offer our consumers additional services like money-transfer, P2P investments, long haul loans with installments and mobile application.

The loan that is average brand brand new clients is just about EUR 140, as well as the typical loan quantity for perform clients is EUR 210. Probably the most loan that is frequent are spending money on bills or even for household shopping.

Present situation and Future

The Russian marketplace is quite competitive in micro-financing services, therefore it is essential to own a good business design. The key rivals would be the solutions which have exactly the same 100% online model as Lion Lender and such young organizations which entered the marketplace recently and currently accomplished quite high brand name awareness, as an example, organizations like PlanetaCash or EpicCash and ‘old dogs’ like Zaymer, Moneza, and Ezaem.

Neighborhood legislation could be the challenge that is main Russia. The Central Bank of Russia slice the rate of interest from 1,5percent a day to at least one% per pay recently and issued brand brand new legislative initiatives being best for clients but result in the micro-financing company more complex.

Because of Lion Lender’s primary goal -building a digital bank in Russia they concentrate on the regional company, but as soon as it’s accomplished, they usually have long-lasting aspiration intends to expand their company abroad.

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