Lu jin holdings: a sample of inclusive finance under the empowerment of science and technology

After the "double carbon" goal was proposed, the green financial market expanded rapidly. The "Green Finance Roadmap Research Report under the Carbon Neutral Vision" released by the Green Finance Committee of the Chinese Society of Finance and Finance believes that carbon neutrality will have a positive impact on China's medium- and long-term economic growth. In the process of carbon neutrality, the demand and supply of green finance will be significantly improved.

Among them, the support role of financial technology in green finance is significant, and the pace of financial technology enterprises to implement green finance has accelerated significantly.

Recently, Lu jinsuo holdings limited (NYSE:LU, "Lu jinsuo holdings") released its first ESG (Environment, Social responsibility, Governance) report, disclosing its main work achievements and explorations in 2020 in small and micro financing, rural revitalization, customer rights protection, corporate governance and environmental protection.

While making efforts to implement the ESG issue, Lujin Holdings also integrates technology applications with the main financial business from the perspectives of business model, risk control and compliance, revealing the opportunities of the times that financial technology companies need to seize in the digital trend.

Peace of mind when ESG embraces finance

ESG investment is gradually setting off a boom in the international market. According to the 2020 Rate the Raters report of SustainAbility, an international authoritative think tank, as many as 65% of investors will refer to the ESG score as a reference standard for corporate performance. Under the consideration of ESG, wealth management, digitalization, and technology have become the key points of innovation and upgrading of financial institutions.

From financial electronics, financial informatization to digital finance, the penetration rate of digital technology in financial business has gradually increased. In this process of qualitative change, digital technology has also continuously promoted financial services to be more convenient, inclusive and efficient, and the new trend of online and offline integration and development has become more and more favored by the market, the service paradigm is more refined and differentiated, and the operating model is more intelligent.

Since 2015, Lujin Institute has begun to put forward the concept of "investor appropriateness management" based on big data and other technologies, and independently developed kyC (Know Your Customer - investor assessment) and KYP (Know Your Product - product risk assessment) two major systems, aiming to provide investors with personalized, dynamic and professional product intelligent matching services after accurate group image analysis of customer consumption behavior data.

On the basis of KYC and KYP, Lu Jinsuo has developed a KII (Know Your Intention - Intent Prediction Model) system covering the user's full financial cycle, judging user intentions and needs in advance, helping customers match more accurate products, so as to achieve a technology-driven endogenous growth cycle.

In 2020, Lujin Holdings was successfully listed, according to the prospectus, Lujin Holdings has defined a unique "Hub & Spoke" business model, through the two cores of retail credit and wealth management, connecting resources from all parties, integrating online and offline channels, using advanced technology to enhance the wealth management experience, implementing inclusive finance, supporting the real economy, and helping financial institutions improve their digital level.

Social income growth, demographic changes, and urban development changes have brought important development opportunities for financial management. In terms of wealth management, thanks to years of financial technology layout and China's growing user needs, the wealth management business of Lujin's To C end has already blossomed.

According to Lujin's second quarter 2021 financial report, as of June 30, 2021, customer assets in the company's existing products (excluding legacy products) increased from RMB326.9 billion as of June 30, 2020 to RMB421.1 billion (US$65.2 billion), an increase of 28.8%. As of June 30, 2021, Lu jin has 47.1 million registered users and 14.8 million active investors, of which the 12-month retention rate of investors has reached 96%. And about 80.2% of the total assets of customers come from relatively high-end investors with investable assets of more than 300,000 yuan.

On the B side, Lujin law firm reduces the flow of offline outlet business of financial institutions, thereby making the investment process paperless, reducing the maintenance cost of the institutional system, and achieving energy saving, emission reduction and green operation.

The above excellent results are the result of the diversification of the wealth management products of the platform in the past decade: Lujin has cooperated with hundreds of financial institutions on the product side to provide customers with a wide range of wealth management products.

This is also the inevitable trend of Lujin's original intention of empowering finance with science and technology and practicing social responsibility. Using innovative financial technology to bring substantial value to users and truly solve the pain points of the industry is the original intention of Lujin as a pioneer of financial technology exploration.

It is reported that in addition to creating a "3K (KYC, KYP, KYI) intelligent financial management interactive system", Lujin also relied on label data and algorithm capabilities to create a LUFLEX intelligent marketing and recommendation system, truly realizing the personalized financial management of "thousands of faces", and through the multi-robot linkage of breakpoints, financial management, and outbound calls, the user's financial management process is real-time intelligent scene return visit, and the success rate of the return visit is as high as 95%.

In the future, with the expansion of the middle class and the affluent group, Lujin can meet the more differentiated and personalized investment needs of customers with its intelligent customized financial services.

In the post-epidemic era, we will build inclusive finance under the empowerment of science and technology

Small and medium-sized enterprises are known as the "capillaries" of the market economy, and their healthy development is closely related to the upward growth of China's economy. In the face of the severe test brought by the new crown epidemic, all sectors of society have made great contributions to the stability of small and medium-sized enterprises.

During the COVID-19 epidemic in 2020, it has become an important mission of financial institutions to revitalize small and micro enterprises and open up financing channels for small and micro enterprises.

Yi Gang, president of Chinese Min bank, recently said, "Under the empowerment of digital technology, financial institutions can realize the digitization and onlineization of the whole process of credit such as approval and risk control, which has the characteristics of fast service speed, accurate risk control, and wide coverage, reducing dependence on collateral, and better meeting the financing needs of small and micro enterprises with "less, frequent and urgent". "How to provide contactless, fast, efficient and safe credit for small and medium-sized enterprises has become a key factor supporting small and medium-sized enterprises to survive the impact of the epidemic."

During the COVID-19 epidemic, Lu Jin's retail credit business not only conformed to policy orientation, helped small and medium-sized micro and medium-sized enterprises that were difficult to be covered by traditional financial institutions to avoid liquidity risks, but also further promoted the values of inclusive finance in the recovery of small and micro enterprises after the epidemic.

According to the ESG report of Lujin Holdings, in the whole of 2020, Lujin Holdings has helped more than 1.24 million small and micro enterprises, 2.76 million people with inclusive financial credit services, the total amount of inclusive credit credit during the year reached 564.961 billion yuan, and the balance of inclusive credit loans during the year was 545.149 billion yuan. Lu Jin's retail credit business, Ping An Inclusive Financial Consumer Literacy Improvement Program "Wei C Action", has held more than 300 offline activities and popularized financial knowledge for more than 10 million people.

On the one hand, with the help of technology solutions such as big data, AI, machine learning and blockchain technology, Lujin effectively carries out risk pricing and appropriateness management, so as to provide loan services that meet the risk and individual needs of small and medium-sized enterprise customers, and help them obtain financing support faster. According to the second quarter financial report, the company's retail credit balance reached 606.8 billion yuan as of June 30, 2021, an increase of 16.8% year-on-year; The cumulative number of borrowers reached about 15.5 million, an increase of 15.7% year-on-year.

On the other hand, relying on rich and complete credit cycle data, and comprehensively using cutting-edge data analysis and AI technology, Lujin Holdings has formed a complete set of risk pricing models, realizing the automation and digital management of the entire loan process. Through risk control, customer identification, intelligent services and other technologies, the company helps small and medium-sized financial institutions to do a good job in risk prevention, effectively reduce the loan overdue rate, and avoid systemic financial risks.

In the second quarter of 2021, the overdue rate of the total loans promoted by the platform for more than 30 days was 1.9%, compared with 2% in the same period of the previous year; The overdue rate of more than 90 days is 1.1%.

In the big goal of inclusive finance, helping small and medium-sized enterprises to alleviate difficulties is only the first step. In the long run, in the context of digitalization, investment centered on small and medium-sized enterprises will be a blue ocean. The emergence of innovative models such as risk control and supply chain finance for small and medium-sized micro enterprises has also provided a new perspective for small and medium-sized enterprises to go far and steady.

Technology creates warm service

Whether it is the wealth management business that focuses on serving the middle class and the affluent masses, or the retail credit business that focuses on small and micro financing services, although Lu Jin, which has the dual gene of "technology + finance" since its birth, has made brilliant achievements in this track of financial technology, lu jin has not forgotten the financial essence of "goodness" over the years.

The ultimate goal of technological development must be to reduce the cost of services in the financial industry. A truly excellent technology financial service provider must strive to provide customers with more personalized and temperature intelligent solutions, so that customers can feel the real convenience and feel the beauty of life brought about by scientific and technological progress.

To this end, Lujin attaches great importance to the protection of customer rights and interests and the improvement of customer experience, and regards the protection of data security and user privacy as one of the important goals. Lujin has established a professional information security management committee and formulated a sound system and management system. The information security management system of Lujin Holdings has passed the information system security level protection (level 3), ISO 20000 and ISO27001:2013 information security management system certification of the Ministry of Public Security.

Lu Jin has achieved remarkable results in customer satisfaction. According to ESG reports, during the period, the NPS (Net Promoter Value) ranking of Lujin's wealth management business continued to remain the first in the industry. The retail credit business closely monitors customer satisfaction, and lupine's NPS continues to rise, up 5 percentage points during the year.

It is precisely because of the recognition of the ultimate direction of finance to goodness that Lu Jinsuo has been able to achieve the emergence of the sun in the continuous changes of science and technology and finance.

From the popularization of personalized applications such as intelligent investment research, intelligent investment consulting, and intelligent marketing, to the innovative combination of live broadcasting, short videos and other service forms to enhance the user experience, and especially for the elderly over 65 years old to open a fast turn to manual service channel, Lu Jin has never forgotten to explore how to make the service more warm and more humane while innovating financial technology.

In the face of the cumbersome and lengthy approval process of credit business at the counter of traditional banks, Lujin launched the world's first face-to-face audit AI robot in the credit field, which will pass the offline credit face-to-face review of traditional financial institutions through AI online and intelligent, and can provide 7 * 24 hours of approval face-to-face review services.

At the same time, Lu Jinsuo is also constantly embracing the development of the times and responding to the issues of the times. Lujin firm adheres to the full combination of financial business and low-carbon concepts, sets up a green finance office, and formulates three major green financial business directions: technology empowers financial institutions to save energy and reduce emissions, introduces green funds and net worth products, and raises funds to support green finance projects.

In addition, Lujin also launched the "Fortune Cloud" service to output innovative solutions for financial institutions, helping traditional financial businesses to move offline and reduce carbon emissions; Another example is the successive launch of pan-ESG public offering products to promote energy conservation and emission reduction, and make finance greener.

Lu Jin's practical actions demonstrate its corporate social responsibility as a pioneer in financial technology. The company assists the 2020 poverty alleviation campaign, responds to the call of the state, actively combines public welfare undertakings with the advantages of main business, and explores the model of financial technology to help farmers. Ping An Puhui, a subsidiary of the company, has cooperated with multiple institutions to launch the "Huinong Loan" product to promote the solution of the problem of "difficult financing, expensive financing and slow financing" of the "three rural" groups, and provide diversified, affordable and convenient lending service solutions for rural entrepreneurs.

The core competitiveness of Lujin's digital operation for many years lies in the intelligent management system built by it relying on its scientific and technological capabilities, which is not only reflected in the use of AI technology to achieve intelligent matching between customers and products, but also in forward-looking technologies such as big data risk control, blockchain traceability and authentication, customer account security management, and the service concept of making technology-driven finance good.

Although Lu Jin has been established for nearly ten years, his long life has only just been called kindergarten. Lujin will continue to strengthen research and development on the road of financial technology, lead the development of the industry through technology-driven, and never forget the original intention to make financial services more warm.

Looking to the future, Ji Guangheng, chairman of Lujin Holdings, said, "As a technology-driven personal financial services platform, Lujin Holdings aims to become a benchmark enterprise for compliance management and corporate governance among Chinese companies listed overseas, and is committed to using technology to promote green inclusive finance and implement a low-carbon development strategy." ”

This article originated from Capital State