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

The core team consist of specialists who’ve considerable expertise in finance, IT, marketing, company development, information protection and appropriate. They’ve been coming from worldwide banking institutions, major regional IT businesses, fin-tech company, and electronic marketplaces. Lion Lender may be the first faltering step to produce an electronic bank in Russia.

Their objective would be to raise the economic literacy regarding the population that is local. Every person must have effortless and access that is convenient economic solutions without borders – worldwide, and realize demonstrably most of the benefits and dangers of lending options.

The business ended up being launched in 2018. Since that time the group ended up being focusing on IT-system, researching the market, item development, etc., as well as in 2019 the appropriate entity for procedure company ended up being founded and sales were launched. Presently, the united team consist of 28 specialists. The mortgage profile during the moment is EUR 2 million, with profits of nearly 100 thousand euros.

“Lion Lender” is a brand that is unusual for the business in Russia. The overwhelming almost all the MFIs brands in Russia are attached to ‘cash’ or ‘money’. The group made a decision to make use of the European approach in operating the business enterprise and branding. Furthermore, the scientists unearthed that prospects are not responsive to the organization title when you look at the loans that are short-term. It’ s most crucial to own a beneficial item and excellent advertising. Lion as an expression of security, self- confidence, and obligation, which can be crucial whenever using money.

How it operates?

check out here

The entire process of acquiring new customers is fairly directly ahead- the prospective customer queries for short-term loans on the internet and sees an advertisement on the internet after which reaches Lion Lender’s site.

Then loan can be chosen by the client amount as well as the loan term they require. The repayment terms are visible right away. In the event that customer will abide by the terms, he then or she fills into the form using the private information for assessment and scoring purposes. Lion Lender then makes use of its very own CRM system with outside integrations for operating the scoring model.

The databases that are external ‘Scorista’ service- the Russian Government Digital Services and credit bureau info is essential to come to a decision regarding the application for the loan approval. In the event that loan is authorized, your client should signal the contract utilizing the signature that is digital from then on, the mortgage is given in moments towards the client’s bank card or account. Most of the procedures just just take not as much as 20 moments for brand new customers as well as less time for consistent consumers.

The advanced IT system with a scoring that is external permits approving loans and then responsible borrowers. Also repeated customers feel the scoring system once more. The scoring model is peaceful conservative and rejects a lot more than 90% of 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 therefore the loan profile quality as time goes on. But, once the loan defaults, Lion Lender utilizes certified debt collectors to have the loan back and minimizes the losings. =

Potential audience

Presently, Lion Lender has nearly 10K customers. The prospective market is people over 30 with family members, 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 most or even for a term that is maximum leads to spending the loan straight right straight back reliably as well as on time.

The typical client is a family members man/woman, 33 yrs old with typical earnings around EUR 550, additional or more training, smartphone and online users. The retention price is finished 50% now. In the foreseeable future, these are typically likely to boost the customers that are returning to 75%.

The normal income for the clients is very high and as a result of the plumped for customers, the standard price for Lion Lender is gloomier compared to the industry average of 15.6per cent. More over, the scoring system is performing its work by maintaining the standard price for the borrowers low. The goal is to take care of the standard price in the present degree, since this will be a motorist for development within their selected development strategy.

The merchandise

Presently, just one item emerges for investment- the loans that are short-term the wage (under thirty days). The attention price is controlled because of the Central Bank of Russia, the mortgage price is bound as much as 1% per time (up to 365per cent p.a.). This will be based on the competition.

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

The normal loan for brand new clients is just about EUR 140, while the normal loan quantity for perform clients is EUR 210. Probably the most loan that is frequent are spending money on bills or even for household shopping.

Present situation and Future

The Russian marketplace is quite competitive in micro-financing services, therefore it is important to own 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 businesses 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.

Neighborhood legislation could be the primary 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 new legislative initiatives which are great for clients but result in the micro-financing company more difficult.

Because of Lion Lender’s aim that is main a digital bank in Russia they concentrate on the regional company, but as soon as it’s accomplished, they’ve long-lasting aspiration intends to expand their company abroad.

Let’s welcome the new Loan Originator on Grupeer platform!