brand brand New loan originator Lion Inspired by the success of electronic banking institutions like Revolut

brand brand New loan originator Lion Inspired by the success of electronic banking institutions like Revolut

Motivated 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 begin Lion Lender.

The core team comprises of specialists who possess substantial expertise in finance, IT, marketing, company development, information safety and appropriate. These are generally coming from worldwide banking institutions, major neighborhood IT businesses, fin-tech company, and electronic marketplaces. Lion Lender may be the initial step to produce an electronic bank in Russia.

Their objective would be to raise the monetary literacy associated with the neighborhood populace. Everyone else needs to have effortless and access that is convenient monetary services without borders – global, and realize plainly all of the advantages and dangers of lending options.

The business had been established in 2018. Ever since then the group ended up being taking care of IT-system, researching the market, product development, etc., as well as in 2019 the appropriate entity for procedure company had been established and product sales had been launched. Presently, the team is made from 28 specialists. The loan profile during the 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 majority that is overwhelming of MFIs brand names in Russia are linked to ‘cash’ or ‘money’. The group made a decision to utilize the European approach in operating the company and branding. More over, the scientists found that prospects aren’t responsive to the organization title when you look at the loans that are short-term. It’ s most crucial to own an excellent item and marketing that is excellent. Lion being a sign of security, self- self- confidence, and duty, which can be essential whenever using money.

How it operates?

The entire process of acquiring new customers is very directly ahead- the prospective client queries for short-term loans on the internet and sees an advertisement on the internet then reaches Lion Lender’s web site.

Then your loan can be chosen by the client quantity in addition to 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 CRM that is own system external integrations for operating the scoring model.

The databases that are external ‘Scorista’ solution- the Russian Government Digital Services and credit bureau info is essential to decide of this application for the loan approval. In the event that loan is authorized, the customer should signal the contract utilizing the electronic signature and from then on, the loan is awarded in moments into the client’s bank card or account. Most of the procedures just simply take not as much as 20 mins for brand new customers and also less time for consistent consumers.

The advanced IT system by having a scoring that is external enables approving loans and then accountable borrowers. Also repeated clients feel the scoring system once again. The scoring model is peaceful conservative and rejects a lot more than 90% of the latest applications and over 15% of duplicated applications. Lion Lender intends to take care of the stability between your high development of their company plus the loan profile quality as time goes by. But, once the loan defaults, Lion Lender utilizes certified debt collectors to obtain the loan back and minimizes the losings. =


Presently, Lion Lender has almost 10K consumers. The prospective market is individuals over 30 with family members, whom knows whatever they require cash for, simply how much as well as for the length of time. They don’t submit an application for the most or even for a maximum term which leads to spending the loan straight right back reliably as well as on time.

The typical client is a family members man/woman, 33 years old with normal income around EUR 550, additional or maybe more training, smartphone and online users. The retention price is finished 50% now. Later on, these are generally about to raise the customers that are returning to 75%.

The income that is average of clients is fairly high and as a result of the selected audience, the standard price for Lion Lender is gloomier compared to the industry average of 15.6per cent. Furthermore, the scoring system has been doing its work by continuing to keep the default price regarding the borrowers low. The goal is to retain the standard price during the present degree, since that is a motorist for development in their selected development strategy.

The item

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

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

The typical loan for brand brand brand new clients is just about EUR 140, in addition to typical loan quantity for perform clients is EUR 210. The absolute most frequent loan purposes are spending money on bills or for household shopping.

Present future and situation

The Russian marketplace is quite competitive in micro-financing services, so it’s extremely important to possess a business model that is solid. The key competitors would be the solutions which have exactly the same 100% online model as Lion Lender and such young companies which joined the marketplace recently and currently achieved quite high brand name understanding, as an example, organizations like PlanetaCash or EpicCash and ‘old dogs’ like Zaymer, Moneza, and Ezaem.

Regional legislation may be the primary challenge in Russia. The Central Bank of Russia cut the rate of interest from 1,5per cent each day to at least one% per pay recently and issued brand brand new legislative initiatives which are 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 concentrate on the local company, but as soon as it’s accomplished, they will have long-lasting aspiration intends to expand their company abroad.

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

Posted on February 21, 2021, in easy money payday loans. Bookmark the permalink. Leave a comment.

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