Shanghai-based online lender grows with small business recovery
Shanghai-based online finance platform FinVolution has posted 40 percent revenue growth on increased loans and borrowers, mainly small business owners who needed funds to restart and expand during the pandemic.
It has increased investment in research, including an AI-powered risk control system, the New York-listed company said Friday.
FinVolution's revenue in the third quarter increased by 40.8 percent to 2.53 billion yuan (US$391.9 million). The net profit reached 632.4 million yuan, compared with 596.9 million yuan in the same period in 2020.
Transaction volumes for small business owners grew rapidly to 7.9 billion yuan, accounting for 20.7 percent, or one-fifth of total transaction volumes, the company said.
The company achieved "better-than-expected" performance in the quarter. It supports small and micro enterprises to develop and "inject vitality into the micro economy," said Zhang Feng, FinVolution's chief executive.
With online finance platforms, small business owners can get funds for business restarts and expansion to support China's economic rebound.
FinVolution plans to continue investing in tech research and ESG (Environmental, Social, and Governance) to offer better support to small and medium-sized enterprises and individual business owners.
The company invested 104.5 million yuan on research in the quarter, 12.4 percent up from a year ago.
In September, FinVolution was included into the FTSE Global Equity Index Series.