Country: China
Year: 2011
- P2P lending marketplace: Lufax helps connect individual borrowers who need small loans to investors who are willing to lend out funds
- Key figures
- Registered users as of Feb 2015 = 7 million
- Transaction volume = RMB 4.1bn over 30 days in January 2016
- Loans outstanding = RMB 35bn in January 2016
- Company valuation = $18.5 million, and considering $5bn IPO in HK and Shanghai as early as 2016
- Investors
- Bank of China Group Investment Ltd
- Guotai Junan International Holdings Ltd
- China Minsheng Banking Corp Ltd
- BlackPine Private Equity Partners
- CDH Investments
Concept
- Lending service
- C2C: Lending marketplace
- Business model: Credit is provided by individual investors that invest in loans. Borrowers typically receive this money within days. Investors receive interest when the loan is repaid.
- Credit risk: P2P borrowers go through a credit assessment via offline stores as well as an online risk review. Once the credit assessment is cleared, borrowers can obtain credit online
- Asset providers: Individual investors
- Fees: Loan fee of around 4% of total loan amount, charged to the borrower
- C2C: Lending marketplace
- Financing service
- B2C: Corporate finance
- Business model: Lufax structures and packages assets from corporations for distribution to individual investors
- Asset providers: Corporations
- F2C: Online securitization platform
- Business model: Lufax structures and packages assets from asset providers for distribution to institutional and individual investors
- Asset providers: Banks, leasing companies
- Asset categories: Auto loan, credit card loan, consumer loan and SME loan
- B2C: Corporate finance
Consumer Benefits
- SME market: SMEs can access small loans that they need. In China they are underserved by traditional banks that typically lend to big and more established companies
- Better rates: Lower cost of operations compared to traditional banks, with savings passed down to borrowers. Investors also earn higher than normal interest rates that vary based on maturity (~7-8%).
- Quick: Compared to traditional bank loans, borrowers have access to funds quickly
- Secured: Most of the loans are guaranteed by Ping An, one of China’s largest insurance companies
How to Use
- Investor: Register for free for an account with Lufax at www.lu.com (only in Mandarin)
- Borrower: Complete an online application at www.10100000.com/daikuan/lfx-index.html (only in Mandarin)
