Prompted by the popularity of electronic banking institutions like Revolut and N26 the group of committed experts has added their savings that are own money to begin Lion Lender.

The core team is composed of specialists who’ve substantial experience with finance, IT, marketing, company development, information safety and appropriate. These are typically originating from worldwide banking institutions, major neighborhood IT organizations, fin-tech company, and electronic marketplaces. Lion Lender could be the step that is first produce an electronic digital bank in Russia.

Their objective is always to boost the economic literacy regarding the neighborhood populace. Everybody must have easy and access that is convenient monetary solutions without borders – global, and comprehend obviously all of the advantages and dangers of lending options.

The business ended up being started in 2018. Since that time the group had been taking care of IT-system, marketing research, item development, etc., plus in 2019 the legal entity for procedure business ended up being founded and product sales had been launched. Presently, the team is made of 28 experts. The mortgage profile during the brief moment is EUR 2 million, with profits of nearly 100 thousand euros.

“Lion Lender” is definitely a brand that is unusual for the business 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 European approach in operating the company and branding. Furthermore, the scientists unearthed that prospective clients aren’t responsive to the business title when you look at the loans that are short-term. It’ s most significant to own an excellent item and marketing that is excellent. Lion as an icon of security, self- self- self- confidence, and obligation, which will be crucial whenever using cash.

How it operates?

The entire process of acquiring new customers is very right ahead- the customer that is potential for short-term loans online and sees an advertisement on the internet after which extends to Lion Lender’s website.

Then loan can be chosen by the client quantity and also the loan term they require. The payment terms are visible instantly. 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 utilizes its own CRM system with outside integrations for operating the scoring model.

The external databases like ‘Scorista’ solution- the Russian Government Digital Services and credit bureau info is required 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 making use of the electronic signature and from then on, the mortgage is awarded in seconds to the client’s bank card or account. Most of the procedures take not as much as 20 mins for brand new consumers as well as a shorter time for consistent consumers.

The advanced IT system with a scoring that is external enables approving loans simply to responsible borrowers. Also repeated consumers go through the scoring system once more. The scoring model is advance payday loan California peaceful conservative and rejects a lot more than 90% of the latest applications and over 15% of duplicated applications. Lion Lender intends to keep up with the stability involving the growth that is high of company as well as the loan profile quality later on. Nonetheless, once 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 family members, whom knows what they desire cash for, just how much as well as for just how long. They don’t submit an application for the most and for a term that is maximum leads to having to pay the mortgage straight straight straight back reliably as well as on time.

The typical consumer is a household man/woman, 33 yrs . old with normal earnings around EUR 550, additional or more training, smartphone and internet surfers. The retention price has ended 50% now. As time goes by, these are typically likely to raise the customers that are returning to 75%.

The normal earnings of this clients is very high and as a result of selected potential audience, the standard price for Lion Lender is leaner compared to the industry average of 15.6per cent. Furthermore, the scoring system does its task by keeping the default price for the borrowers low. The goal is to keep up with the standard price at the present degree, as that is a motorist for development inside their selected development strategy.

The merchandise

Presently, only 1 product emerges for investment- the short-term loans before the wage (under thirty days). The attention price is controlled by the Central Bank of Russia, the mortgage price is restricted as much as 1% per day (up to 365per cent p.a.). That is based on the competition.

Presently, the group is working constantly to produce the chance to provide our consumers additional solutions like money-transfer, P2P opportunities, long haul 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 absolute most loan that is frequent are spending money on bills or even for household shopping.

Current future and situation

The Russian marketplace is quite competitive in micro-financing services, therefore it is extremely important to possess a business model that is solid. The primary rivals would be the services which have equivalent 100% online model as Lion Lender and such young businesses which joined industry recently and already accomplished quite high brand understanding, for instance, organizations like PlanetaCash or EpicCash and ‘old dogs’ like Zaymer, Moneza, and Ezaem.

Regional legislation could be the primary challenge in Russia. The Central Bank of Russia slice the rate of interest from 1,5percent per time to at least one% per pay recently and issued brand new legislative initiatives being beneficial to clients but result in the micro-financing company more complex.

As a result of Lion Lender’s primary goal -building a digital bank in Russia they focus on the neighborhood company, but as soon as its accomplished, they will have long-term aspiration intends to expand their company abroad.

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