Encouraged 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 comprises of specialists who’ve substantial expertise in finance, IT, marketing, company development, data safety and appropriate. They truly are originating from worldwide banking institutions, major regional IT organizations, fin-tech company, and electronic marketplaces. Lion Lender could be the step that is first create an electronic digital bank in Russia.

Their objective would be to boost the monetary literacy regarding the population that is local. Everyone else must have effortless and access that is convenient monetary solutions without borders – global, and comprehend demonstrably all of the advantages and dangers of lending options.

The business ended up being created in 2018. Ever since then the group ended up being taking care of IT-system, researching the market, item development, etc., as well as in 2019 the entity that is legal procedure company was founded and product product sales had been launched. Presently, the united team is made from 28 specialists. The mortgage profile during the moment is EUR 2 million, with profits of almost 100 thousand euros.

“Lion Lender” is a brand that is unusual for an organization in Russia. The majority that is overwhelming of MFIs brands in Russia are attached to ‘cash’ or ‘money’. The group made a decision to make use of the approach that is european operating the company and branding. More over, the scientists found that prospective clients aren’t responsive to the business title within the loans that are short-term. It’ s most crucial to own a beneficial item and marketing that is excellent. Lion as being an icon of security, self- confidence, and duty, that is essential whenever using cash.

How it functions?

The entire process of acquiring new customers is fairly directly ahead- the customer that is potential for short-term loans online and sees an advertising on the internet after which extends to Lion Lender’s web site.

Then your customer can decide the mortgage quantity while the loan term they want. The payment terms are visible immediately. In the event that customer will follow the terms, he then or she fills when you look at the application because of the information that is personal for assessment and scoring purposes. Lion Lender then makes use of its CRM that is own system outside integrations for running 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 the 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 issued in moments into the client’s bank card or account. Most of the procedures 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 enables approving loans simply to accountable borrowers. Also repeated customers feel the scoring system once more. The scoring model is peaceful conservative and rejects significantly more than 90% of the latest applications and over 15% of duplicated applications. Lion Lender intends to keep up with the stability between your growth that is high of company while the loan profile quality later on. 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 clients that are nearly 10K. The prospective market is individuals over 30 with household, who knows what they desire cash for, exactly how much as well as for the length of time. They don’t make an application for the absolute most or even for a maximum term which leads to spending the mortgage right right back reliably as well as on time.

The typical client is a family members man/woman, 33 yrs old with typical income around EUR 550, additional or more training, smartphone and online users. The retention price has ended 50% now. As time goes by, these are typically about to boost the customers that are returning to 75%.

The normal earnings of this clients is fairly high and as a result of plumped for 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 task by maintaining the standard price regarding the borrowers low. The aim is to retain the standard price during the present degree, as this will be a motorist for development in their selected development strategy.

The item

Presently, only 1 item exists for investment- the short-term loans before the income (under thirty days). The attention price is controlled by the Central Bank of Russia, the mortgage price is bound as much as 1% per time (up to 365per cent p.a.). This can be based on the competition.

Presently, the group is working constantly to supply the chance to provide our consumers additional solutions like money-transfer, P2P opportunities, long haul loans with installments and mobile application.

The typical loan for brand new clients is just about EUR 140, additionally 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 extremely important to own a great business design. The primary rivals would be the solutions which have exactly the same 100% online model as Lion Lender and such young businesses which joined industry 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 is 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 brand new legislative initiatives which are great for clients but payday loans in Louisiana no credit check 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 neighborhood company, but when it’s accomplished, they’ve long-lasting aspiration intends to expand their company abroad.

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