Q&A with Feidai app: Committed to providing mobile lending services

Meng Qingfeng, Chief Strategy Officer of Feidai Finance, delivered a speech at the Global Mobile Internet Conference (GMIC) in Beijing on Friday. After his speech, he shared with AllChinaTech his views on how Feidai is triggering a revolution in online lending and how the app is differentiating itself from P2P lending services.

What does Feidai do?

Feidai is a mobile lending app unveiled by Shenzhen Zhong Xing CredEx Finance Technology Co.Ltd. last October. We are dedicated to offering lending services to Chinese citizens between 22 and 60 years of age. People can apply for loans through the Feidai mobile app. The specific amount depends on the borrower’s credit status, and we have expanded our business to 50 cities so far.

What are some of Feidai’s highlights?

With the aid of mobile internet and big data applications, the entire lending process with Feidai is operated online, and takes the borrower just five minutes. Through the app, borrowers can lengthen or shorten their repayment deadline according to their own financial status, which not only increases the flexibility of lending but also reduces the cost to users.

Feidai can offer borrowers a credit line of up to RMB 300,000 (USD 46,350) and unlike other lending apps that focus on providing lending services as part of an ecological business chain, Feidai is an open lending platform. All people are eligible to apply for loans on it.

Feidai has also adopted a strategy of dynamic management. When a borrower’s credit status begins to improve, his credit limit will also increase as the loan rate becomes lower – and vice versa.

How does Feidai differentiate itself from P2P lending?

P2P lending platforms usually draw capital from individuals, while our capital comes from large financial institutions such as banks, securities, trusts and insurance companies, which can provide us with a more stable supply of capital. Also, unlike P2P lending platforms that have their own cash pooling system, Feidai is a third-party solution provider between financial institutions and borrowers. The loans applied by borrowers come directly from financial institutions, as the connector, we are not involved in the transfer of the capital. We effectively accelerate the transfer of capital and solve an imbalance between the lender and the borrower that comes with using the P2P platforms. The relationship between Feidai and traditional financial institutions is a win-win cooperation.

What are the problems that you’re trying to solve?

Feidai is focused on solving problems which exist in traditional lending.

Borrowers are usually faced with providing massive amounts of paper proof materials, while also being limited by time and space in traditional lending. They need to wait for a long time before they get loans and borrowers cannot choose their installment plan at will in traditional lending

Feidai users can apply for loans at any place or time. They can set their own loan amortization schedule according to their financial conditions, which could be as long as 24 months, and Feidai allows borrowers to change their repayment date for free. Borrowers also don’t need to undergo second rounds of credit investigation the next time they want to apply for a loan.

How can Feidai do this?

It all depends on our complete risk control system. On one hand, Feidai has an intelligent anti-fraud system which adopts advanced technology such as face recognition, fingerprint authentication and behavior analysis. We can utilize it to obtain users’ real-time data and identify fraudulent behavior. Once a user’s transaction seem abnormal, we can terminate it right away. Apart from the intelligent anti-fraud system, we also possess a big data analytics platform which enables us to obtain the user data from the central bank directly. Based on this data, we can make accurate analyses of users’ repayment abilities, financial stability, and assets conditions. Then we can provide borrowers with appropriate credit products.

(Top photo from csdn.net)

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