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Fintech financing group finances over 20 million customers

In the past, financing options were limited to financial institutions mostly. This included financing for both businesses and consumers for a variety of uses. Customers would need to physically go to a bank, submit documents, and await a few days or weeks before they know the outcome of their application.

Consumers have been at the mercy of financial institutions for the longest time. This age-old practice has been going on for years and often resulted in the rejection of applications due to incomplete documents, failed credit scores, and other reasons. By the time a loan is approved and the funds successfully provided to an applicant, it could almost be a few weeks.

When fintech first started, most banks were unsure if it would actually work. Many felt that consumers would not be able to do much with fintech apps, apart from the basic payment functions. However, over time, fintech companies have been able to convince and prove to regulators that they can operate as good as or even better than most financial institutions.

Soon, fintech companies began offering financial services to their customers. While the amounts are small, the flexibility the process provided proved to be a success. Consumers felt that by having access to lower amounts of finance, they can not only pay them back faster but also have the convenience of applying them.

Today, financial services like lending, loans, and such that are provided by fintech companies can be completed in a matter of minutes via a mobile device. Applicants no longer need to go to a bank with documents or even wait a long time for the status of their application. Banks have realized this and are now also adopting fintech in some of their financial services to cater to the modern customer.

According to a report by Robocash Group, the first quarter of 2022 itself saw a whopping 20 million registrations for consumer financing with a volume of over US1.7 billion. Interestingly, the highest consumer demand, with repeated clients were from the Philippines and Kazakhstan in the Asia Pacific region.

The financial group of companies that provides robotic financial services in the field of alternative lending and marketplace funding issued US$ 266.3 million worth of loans in the first quarter of 2022, up by 81.4% from the same period last year.

The repeated clients made substantial contributions in this regard. March featured the highest historical share of issued principal to the returning customers, an increase of 69% YoY. With the growing demand for the services, there also was a significant increase of 14% in the average issued principal among the repeated clients.

Interestingly, the Kazakh and Philippine markets have demonstrated the highest customer demand. The loan disbursements and collection in the Philippines significantly exceed the plan. Given that the Philippines’ unbanked and rural banking population is still high, the increased loan disbursements indicate a shift in the country’s economic capabilities as well.

The month of March has been especially eventful, with the record-setting repeated loans financing exceeding 70%. While the share of new borrowers reached 30%, outperforming the initial plan by 33%. In Kazakhstan, the group remains the undisputed segment leader. The sales and collection plans have both been overfulfilled at 118% and 112% respectively.

“With consumer lending services, the repeat clients are the foundation upon which the profitability of the business and a long-term winning strategy stand to avoid potential losses. Over the past years, the share of Robocash Group’s repeated customers has been steadily increasing, exceeding 80% by 2021. Robocash Group was able to minimize the risk by focusing on customer loyalty and building trust among the repeat customers,” commented Sergey Sedov, Founder and CEO of Robocash Group.