Lujin Holdings: Aiming at the "double carbon" goal of empowering green finance with science and technology

Reporter Zheng Yu reported from Beijing

After the "double carbon" goal was proposed, all walks of life are actively carrying out low-carbon transition. How to innovate and serve small and medium-sized enterprises and how to find a green development path have become important issues facing Chinese enterprises.

"It is an important mission of Lujin to make retail credit and wealth management more convenient, safer and more efficient through technological innovation, and to achieve sustainable innovation and development through green and warm finance." On September 15, Zheng Xigui, Chief Financial Officer of Lu jin holdings (NYSE:LU), said at the "Remodeling and Upgrading - 2021 ESG Investment and Development Forum" co-hosted by China Business Daily and CEI Future.

In terms of technology companies practicing corporate social responsibility and promoting the diversification of supply-side structural levels, the ESG practice controlled by Lujin has become a representative industry sample.

Zheng Xigui, Chief Financial Officer of Lu jin holdings

"Healthy, sustainable and warm"

In recent years, the accelerated integration of technology and finance has enabled various types of market entities to carry out extensive and efficient collaborative work, and financial technology companies are playing an increasingly important role in social value creation based on the characteristics of strong flexibility, high efficiency and customer inclusion.

"When people mention finance, they think more about 'boring, gray, cold', but Lujin Holdings hopes to give people the impression that 'finance is green, healthy and sustainable, has temperature, can help others and creates value'. So, what is there temperature? Who is it that it serves and for whom does it create value? Zheng Xigui said.

"Operators of small and micro enterprises need funds, but the loan amount given by financial institutions may not be able to fully meet their financing needs, or they cannot apply for loans through them." Zheng Xigui said that in this process, Lu Jin can help promote retail loans, improve customer acquisition, underwriting and other links through AI and data-enabled risk control.

"For example, a few years ago, a loan customer applied for a loan and needed to prepare a series of complex materials from identity to bank accounts, proof of employment, salary flow and so on. But now, through AI technology has completed the simplification of the process, now customers only need to apply for loans only need the ID card number and customer authorization, they can easily complete a series of complicated procedures in the past, greatly liberating manpower, while saving time and optimizing the experience. ”

In the process of long-term continuous service to small and micro enterprises, while committed to meeting the unmet financing needs of small and micro enterprises, Lu Jinsuo also has a clearer and more accurate grasp of customers - "'They' are high-quality customers that the traditional financial industry cannot effectively serve, of which 89% of small and micro business owners have credit cards, with an average credit line of 147,000 yuan, only 29% have bank operating loans, with an average loan amount of 390,000 yuan, and only 37% have bank consumer loans. The average borrowing amount was 101,000 yuan. Zheng Xigui said.

"Unlike traditional financial institutions, the customer base we focus on has its own uniqueness, and they are also people that other technology platforms have not yet served." Zheng Xigui pointed out.

Facts have proved that Lujin's unique positioning and specialized technology have achieved initial results in the field of retail credit and wealth management: in the second quarter of 2021, 77.6% of the borrowers in Lujin's new loans were small and micro enterprises; in the field of wealth management, 80.2% of investors with personal assets of more than 300,000 yuan during the reporting period.

Improve the overall governance and fully integrate with the low-carbon economy

It is understood that in addition to user experience optimization and business process innovation, Lu Jin has also actively carried out a series of green finance practices.

According to public information, Lujin Holdings has set up a green finance office to take the lead in planning the promotion and development of green finance-related initiatives, and relies on the green finance office to carry out internal and external linkage and resource integration.

For specific exploration, Zheng Xigui further said, "(Lu JinSuo Holdings) will integrate and utilize a number of technologies, successively launch services and technological innovation tools that integrate financial technology and operation experience, reduce the flow of offline branch business of financial institutions, so as to make the investment process paperless, and reduce the maintenance cost of institutional systems, so as to achieve energy conservation and emission reduction and green operation." Zheng Xigui introduced.

In terms of raising funds to support green finance projects, Lu Jin Institute has also carried out many explorations, such as introducing related industrial capital such as environmental protection, emission reduction, and cultural development, and effectively supporting industries that meet the connotation of ESG, such as sewage treatment, urban greening, new energy, tourism and cultural creation.

Zheng Xigui stressed, "ESG is not a movement, nor is it shouting a slogan, all people must implement into action, must practice implementation on the business model, attach importance to regulatory compliance and improve the overall level of governance, and constantly explore ways to achieve 'green', improve 'temperature', improve the level of scientific and technological innovation to support the development of green and low-carbon economy, and strive to contribute more to environmental protection." ”

(Editor: Cao Chi Proofreader: Peng Yufeng)