Influenced by the success of electronic banking institutions like Revolut and N26 the group of committed specialists has added their savings that are own money to start out Lion Lender.

The core team is composed of specialists that have considerable expertise in finance, IT, marketing, company development, information protection and appropriate. They’ve been originating from worldwide banks, major regional IT organizations, fin-tech company, and electronic marketplaces. Lion Lender could be the first rung on the ladder to produce an electronic digital bank in Russia.

Their objective is always to boost the economic literacy of this population that is local. Everybody else must have simple and access that is convenient monetary solutions without borders – global, and comprehend obviously all of the benefits and dangers of lending options.

The organization ended up being created in 2018. Ever since then the group ended up being taking care of IT-system, general market trends, item development, etc., and in 2019 the appropriate entity for procedure company had been founded and product sales had been launched. Presently, the team consist of 28 experts. The mortgage profile at the brief moment is EUR 2 million, with profits of almost 100 thousand euros.

“Lion Lender” is definitely a brand that is unusual for an organization in Russia. The overwhelming almost all the MFIs brands in Russia are attached to ‘cash’ or ‘money’. The group made a decision to utilize the European approach in operating the company and branding. More over, the scientists found that prospective clients aren’t responsive to the business title when you look at the short-term loans market. It’ s most critical to possess a great item and marketing that is excellent. Lion being an expression of security, self- confidence, and duty, that is essential whenever using cash.

How it functions?

The entire process of acquiring new business is very directly ahead- the prospective customer queries for short-term loans on the internet and sees an advertising on the net then extends to Lion Lender’s site.

Then your customer can select the mortgage quantity and also the loan term they require. 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 own CRM system with outside integrations for operating the scoring model.

The outside databases like ‘Scorista’ service- the Russian Government Digital Services and credit bureau info is required to come to a decision associated with application for the loan approval. In the event that loan is authorized, the customer should sign the contract utilizing the signature that is digital from then on, the mortgage is awarded in moments towards the client’s bank card or account. Most of the processes simply take significantly less than 20 moments for brand new consumers as well as less time for consistent consumers.

The advanced IT system having a outside scoring model enables approving loans simply to accountable borrowers. Also repeated consumers 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 duplicated applications. Lion Lender intends to take care of the stability amongst the growth that is high of company additionally the loan profile quality as time goes by. But, if the loan defaults, Lion Lender makes use of certified debt collectors to obtain the loan back and minimizes the losings. =

Potential audience

Presently, Lion Lender has almost 10K consumers. The goal market is individuals over 30 with family members, who knows what they require cash 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 spending the mortgage straight back reliably as well as on time.

The customer that is typical a household man/woman, 33 years old with normal earnings around EUR 550, additional or more education, smartphone and online users. The retention price has ended 50% now. Later on, these are generally intending to boost the customers that are returning to 75%.

The normal earnings associated with the clients is fairly high and because of the chosen potential audience, the standard rate for Lion Lender is gloomier 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 retain the standard price during the level that is current as this is a motorist for development within their chosen growth strategy.

The merchandise

Presently, only 1 product emerges for investment- the loans that are short-term the wage (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(up to 365% p.a.) day. That is on online payday loans North Carolina the basis of the competition.

Presently, the group is working constantly to give you 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, while the typical loan amount for perform clients is EUR 210. Probably the most regular loan purposes are investing in bills or even for family members shopping.

Present future and situation

The Russian marketplace is quite competitive in micro-financing services, it is therefore essential to possess a business model that is solid. The key rivals would be the solutions which have the exact same 100% online model as Lion Lender and such young companies which joined the marketplace recently and currently accomplished quite high brand name understanding, for instance, businesses like PlanetaCash or EpicCash and ‘old dogs’ like Zaymer, Moneza, and Ezaem.

Neighborhood legislation could be the primary challenge in Russia. The Central Bank of Russia slice the interest from 1,5per cent each day to at least one% per pay recently and issued brand brand brand new legislative initiatives being best for clients but make the micro-financing company more difficult.

Because of Lion Lender’s aim that is main a digital bank in Russia they concentrate on the neighborhood company, but when its accomplished, they will have long-lasting aspiration intends to expand their company abroad.

Let’s welcome the loan that is new on Grupeer platform!