CREDIT ANALYST – PRIMA PRATAMA INTEGRITAS, PT
We are a leading online consumer finance marketplace in China with strong brand recognition. Launched in 2007, Our company is the first online consumer finance marketplace in China connecting borrowers and investors, whose needs have not been met by traditional financial institutions. Our Company was ranked No. 1 among China’s online consumer finance marketplaces in terms of the number of borrowers as of December 31, 2016 and June 30, 2017, according to iResearch. As of September 30, 2017, We had over 57 million cumulative registered users and as a pioneer in China’s online consumer finance marketplace industry, We benefits from its early-mover advantages and the invaluable data and experience accumulated throughout multiple complete loan lifecycles.
Our platform, empowered by proprietary, cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience, as evidenced by the rapid growth of its user base and loan origination volume.
We strategically focuses on serving borrowers between the ages of 20 and 40, a demographic typically more receptive to internet financial services and poised to become the driving force of China’s consumer finance market. Borrowers on Our platform reside in 97% of the cities and counties in China and many have limited or no credit history. We primarily offers short-term loans to the borrowers to meet their immediate credit needs, while allowing them to gradually establish their credit history through activities on the platform. In 2016 and the six months ended June 30, 2017, loans originated on our marketplace had an average principal amount of RMB 2,795 and RMB 2,347, respectively, and an average term of 9.7 months and 8.2 months, respectively. Borrowers come to Our Company for convenient, simple and fast loan transaction processing. A borrower may submit a loan application anytime, anywhere using mobile or PC devices and receive a credit decision in as little as one minute. Leveraging proprietary algorithms, We are able to effectively match borrowers’ loan requests with investors’ investment demands and provide borrowers with prompt funding. The smooth and expedient user experience contributes to Our high levels of borrower stickiness.
Our platform also appeals to investors by offering a wide spectrum of investment options. We provide investors with an opportunity to invest in an emerging asset class – consumer loans – through a variety of investment options. Investors may subscribe to loans based on the profiles of approved borrowers listed on the platform, use automated investing tools specifically designed to improve their investment efficiency, or enroll in investment programs that cater to different investment preferences. We offer attractive risk-adjusted returns supported by a set of risk management procedures and implements protection mechanisms to control and mitigate investors’ risk exposure. To meet investors’ liquidity demands, We have also established a secondary loan market to facilitate their early exit.
Additionally, We have built an extensive database that contains first-hand through-the-cycle credit data as well as data from various third-party sources. We distill over 1,000 variables to present a 360-degree user profile of its borrowers. As of September 30, 2017, Our Company had approximately 9.0 million unique borrowers. We have established systematic risk management procedures that have proven to be effective in various macro-economic environments. Our proprietary and big-data based credit scoring model, the Magic Mirror Model, represents one of its key competitive advantages. As the core component of our risk management procedures, We are continually testing and refining its credit decision-making rules and continues to study the increasing amount of data accumulated through Paipaidai’s loan facilitation.
We generate revenues primarily from fees charged to borrowers for our services in matching them with investors and for other services we provide over the loan life cycle. With the growing wealth of China’s large consumer base, the increasing willingness of China’s young generation to spend, as well as new internet-based business models, China’s household consumption shows favorable growth prospects.