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Yirendai, China’s largest P2P consumer finance platform, expands beyond lending

Yirendai, the largest P2P online consumer finance marketplace in China, offers services that are based on technology-driven innovations such as big data powered risk management, data driven customer acquisition and conversion, and anti-fraud technology

November 28, 2018 | Gerald Tai
  • More than 54% of loans are facilitated through mobile applications.
  • In the wake of the regulatory tightening of internet finance, Yirendai ramped up its risk management capabilities
  • Yiren score, modelled after the FICO score, is compiled by a program constructed like a web crawler

Yirendai is an online consumer finance marketplace founded in March 2012. Technology-driven and user-centric, the platform efficiently matches borrowers with investors. The platform is built on two customer segments: prime borrowers who are credit card holders with a salary income; and investors who are seeking wealth management products. The platform provides borrowers with fast and convenient access to consumer credit at competitive rates, while offering investors easy and quick access to an alternative asset class. Yirendai differentiates itself from other peer-to-peer (P2P) lending platforms through its risk management systems, customer acquisition, and insurance programs for its borrowers.

Yirendai's new credit scoring system

In 2017, the company launched Yiren scores, its new credit scoring system, aimed at accurately characterising borrowers' credit profiles. The Yiren score is modeled after FICO scores in the United States and compiled by a program constructed like a web crawler which gathers available data, such as credit card history or housing allowance tax deductions. Under this new credit scoring system, the platform upgrades its risk grid with five segments and divides potential borrowers into distinctively different credit segments.

The company's expansion through new channels, products and partners

Regarding customer acquisition, the company is establishing new acquisition channels and introducing new loan products. It utilises online channels, such as search engine marketing, search engine optimisation, partnerships with internet companies and internet traffic ac...

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Keywords:P2P, Technology, Consumer Finance, Technology, Lending, Investing, Financing