Thread: What Indian Lending Fintech can learn from Qudian?
Backed by Alibaba, started its business as Qufenqi in Mar 2014, by giving cash credit services to college students, and by Dec 2014 started targeting young white-collar workers ( Kind of model Krazybee did in India)
Backed by Alibaba, started its business as Qufenqi in Mar 2014, by giving cash credit services to college students, and by Dec 2014 started targeting young white-collar workers ( Kind of model Krazybee did in India)
Their growth was amazing: 
Ant finance, Alibaba’s finance arm, owned 12% in Qudian.
This synergy enabled Alipay’s users to find a cash loan promotion via them. Qudian primarily bases its lending decisions on Sesame Credit Score, the individual credit scoring system developed by Ant Finance. All Good!!
This synergy enabled Alipay’s users to find a cash loan promotion via them. Qudian primarily bases its lending decisions on Sesame Credit Score, the individual credit scoring system developed by Ant Finance. All Good!!
They automated credit Approval and loan servicing.
It was a rising star when it got listed in the US, raising nearly $1 billion and becoming one of the first firms from China’s then-hot fintech sector to go public in US. Then came the Beijing clamps down on Fintech, who had laxer lending standards & weaker risk-prevention systems
Few days back they withdraw their fiscal 2019 guidance which and triggered the bloodbath and now their shares are at all-time low. They have announced a $500 million share buyback to boost confidence.
So where is the learning: 100% Automation in Lending is still far off, focus on collection, Micro size consumer lending is not a great idea, as the cost of door knocking will be high.
In manufacturing plants, they say "Good Housekeeing prevent accidents". So, in lending, Better screening at the front end (via Credit Underwrting & fruad checks) prevents the problem at the back end i.e collections & defaults.
