Motivated 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 comprises of specialists that have considerable expertise in finance, IT, marketing, business development, information protection and legal. These are generally originating from international banking institutions, major neighborhood IT businesses, fin-tech business, and electronic marketplaces. Lion Lender could be the step that is first produce an electronic digital bank in Russia.
Their objective is always to raise the economic literacy regarding the population that is local. Every person need to have effortless and convenient usage of monetary solutions without borders – worldwide, and realize plainly most of the advantages and dangers of lending options.
The business had been created in 2018. Ever since then the group had been taking care of IT-system, researching the market, item development, etc., and 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 profile during the moment is EUR 2 million, with profits of almost 100 thousand euros.
“Lion Lender” can be a uncommon name brand for the business in Russia. The overwhelming most of the MFIs brands in Russia are attached to вЂcash’ or вЂmoney’. The group made a decision to utilize the approach that is european running the business enterprise and branding. Furthermore, the scientists unearthed that prospective clients aren’t responsive to the organization title into the short-term loans market. It’ s most critical to own an excellent product and exceptional advertising. Lion as a sign of stability, confidence, and obligation, that is crucial whenever using cash.
How it operates?
The entire process of acquiring new customers is fairly directly forward- the customer that is potential for short-term loans online and sees an advertisement on the net after which extends to Lion Lender’s site.
Then your loan can be chosen by the client amount in addition to loan term they require. The payment terms are visible instantly. In the event that customer will follow the terms, he then or she fills when you look at the application form utilizing the information that is personal for assessment and scoring purposes. Lion Lender then utilizes its CRM that is own system outside integrations for running the scoring model.
The databases that are external вЂScorista’ solution- the Russian Government Digital Services and credit bureau information is essential to come to a decision regarding the application for the loan approval. In the event that loan is authorized, the customer should signal the agreement with the signature that is digital from then on, the loan is given in moments towards the client’s bank card or account. All the procedures simply just take significantly less than 20 mins for brand new customers as well as a shorter time for repeated consumers.
The advanced IT system having a scoring that is external permits approving loans simply to accountable borrowers. Even repeated customers go through the scoring system once more. The scoring model is peaceful conservative and rejects a lot more than 90% of brand new applications and over 15% of duplicated applications. Lion Lender intends to keep up with the stability amongst the high development of their company therefore the loan profile quality as time goes by. Nonetheless, once the loan defaults, Lion Lender makes use of certified debt collectors to obtain the loan back and minimizes the losings. =
Audience
Presently, Lion Lender has clients that are nearly 10K. The mark market is individuals over 30 with household, whom knows what they desire cash for, simply how much as well as for just how long. They don’t make an application for the absolute most or even for a term that is maximum leads to having to pay the mortgage straight straight right 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 training, smartphone and online users. The retention price is finished 50% now. As time goes on, they truly are likely to raise the coming back clients base to 75%.
The normal earnings of this customers is very high and as a result of selected potential audience, the standard price for Lion Lender is gloomier compared to the industry average of 15.6per cent. Furthermore, the scoring system is performing its task by continuing to keep the standard rate regarding the borrowers low. The aim is to keep up with the standard price in the level that is current since this will be a motorist for development in their selected development strategy.
The item
Presently, just one product emerges for investment- the loans that are short-term the income (under thirty day period). The attention price is managed by the Central Bank of Russia, the mortgage price is bound as much as 1% per(up to 365% p.a.) day. This might be in line using the competition.
Presently, the group is working constantly to supply the chance to provide our customers additional solutions like money-transfer, P2P opportunities, long haul loans with payments and mobile application.
The typical loan for brand new clients is just about EUR 140, while the typical loan quantity for perform clients is EUR 210. The absolute most loan that is frequent are investing in bills or even for family members shopping.
Present situation and Future
The Russian marketplace is quite competitive in micro-financing services, therefore it is important to possess a great business design. The primary competitors 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 understanding, for instance, businesses like PlanetaCash or EpicCash and вЂold dogs’ like Zaymer, Moneza, and Ezaem.
Neighborhood legislation may be the challenge that is main Russia. The Central Bank of Russia slice the rate of interest from 1,5per cent each day to at least one% per pay recently and issued brand brand new legislative initiatives being beneficial to clients but make the micro-financing company more difficult.
Because More hints of Lion Lender’s aim that is main a digital bank in Russia they focus on the regional business, but as soon as it’s achieved, they usually have long-term aspiration intends to expand their company abroad.
Let’s welcome the loan that is new on Grupeer platform!