Influenced because of the success of electronic banking institutions like Revolut and N26 the group of committed specialists has added their very own cost savings and money to begin Lion Lender.

The core team is composed of specialists who possess considerable expertise in finance, IT, marketing, company development, information protection and appropriate. they have been originating from worldwide banking institutions, major local IT businesses, fin-tech business, and electronic marketplaces. Lion Lender may be the initial step to produce an electronic bank in Russia.

Their objective is always to raise the economic literacy of this local populace. Every person must have simple and access that is convenient economic solutions without borders – global, and realize obviously most of the advantages and dangers of financial loans.

The organization was started in 2018. Since then the group ended up being focusing on IT-system, general market trends, item development, etc., as well as in 2019 the appropriate entity for procedure company ended up being founded and product sales had been launched. Currently, the team is made from 28 experts. The mortgage profile in the moment is EUR 2 million, with profits of nearly 100 thousand euros.

“Lion Lender” is definitely a brand that is unusual for an organization in Russia. The overwhelming most of the MFIs brands in Russia are attached to ‘cash’ or ‘money’. The group chose to make use of the approach that is european operating the business enterprise and branding. More over, the scientists unearthed that prospective clients aren’t responsive to the organization title within the short-term loans market. It’ s most significant to own a great item and exceptional advertising. Lion as a sign of security, confidence, and obligation, which will be crucial whenever using cash.

How it functions?

The entire process of acquiring new customers is quite directly ahead- the potential consumer queries for short-term loans on the internet and sees an advertisement online after which extends to Lion Lender’s internet site.

Then customer can select the loan quantity and also the loan term they want. The payment terms are visible right away. Then he or she fills in the application form with the personal information for evaluation and scoring purposes if the client agrees with the terms. 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 application for the loan approval. In the event that loan is authorized, your client should signal the contract with the electronic signature and from then on, the mortgage is given in seconds towards the client’s bank card or account. All of the procedures just simply take significantly less than 20 moments for brand new clients and also less time for consistent consumers.

The advanced IT system by having a outside scoring model enables approving loans and then responsible borrowers. Also repeated clients feel the scoring system once again. The scoring model is peaceful conservative and rejects significantly more than 90% of brand new applications and over 15% of duplicated applications. Lion Lender intends to take care of the stability between your growth that is high of company plus the loan profile quality in the foreseeable future. But, as soon as the loan defaults, Lion Lender utilizes certified debt collectors to have the loan as well as minimizes the losses. =

Potential audience

Presently, Lion Lender has clients that are nearly 10K. The mark market is individuals over 30 with household, whom understands what they desire money for, just how much as well as 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 back reliably as well as on time.

The typical consumer is a household man/woman, 33 years of age with typical earnings around EUR 550, secondary or maybe more education, smartphone and internet surfers. The retention price has ended 50% now. Later on, they’ve been about to boost the coming back clients base to 75%.

The normal earnings of this customers is very high and because of the selected customers, 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 work by continuing to keep the standard price regarding the borrowers low. The aim is to keep up with the standard price during the level that is current since this will be a motorist for development in their selected growth strategy.

The item

Presently, just one item exists for investment- the short-term loans before the income (under thirty days). The attention price is controlled because of the Central Bank of Russia, the mortgage price is restricted as much as 1% per(up to 365% p.a.) day. That is on the basis of the competition.

Presently, the group is working constantly to offer the chance to provide our customers additional solutions like money-transfer, P2P opportunities, longterm loans with installments and mobile application.

The loan that is average brand brand new clients is just about EUR 140, together with typical loan quantity for perform clients is EUR 210. The essential 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, so it’s extremely important to own a business model that is solid. The key rivals will be the solutions which have the exact same 100% online model as Lion Lender and such young organizations which joined the marketplace recently and currently accomplished quite high brand name understanding, for instance, organizations like PlanetaCash or EpicCash and ‘old dogs’ like Zaymer, Moneza, and Ezaem.

Regional regulation is the main challenge in 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 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 focus on the neighborhood company, but when its accomplished, they usually have long-lasting ambition intends to expand their business abroad.

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