Sector: Financial Services
Industry: Credit Services
Sub-Industry: Consumer Finance
9F is a leading digital financial account platform integrating and personalizing financial services in China with footprint in Southeast Asia. The company delivers a comprehensive range of financial products and services including loan products, online wealth management, and payment facilitation, all integrated under a single digital financial account.
According to Oliver Wyman, among the independent lending marketplaces in China, 9F was the largest online consumer finance platform in terms of outstanding loan balance as of December 31, 2018. The company leverages technology, a deep understanding of its large user base and strategic partner relationships to create a one-stop experience bringing together borrowers, investors, financial institution partners, and merchant partners.
9F's core product is One Card – a digital alternative to conventional personal finance offerings. Around One Card, 9F has built an ecosystem connecting borrowers, investors, financial institution partners and merchant partners. It offers revolving loan products tailored to the specific spending needs and risk profiles of millions of users. 9F's One Card users can utilize their approved credit limits to purchase products from 9F's strategic partners including China UnionPay that has connected more than 3 million merchants, and from the One Card Mall, 9F's proprietary online shopping platform.Additionally, 9F's One Card users can draw down cash from approved credit limits to meet other financial needs. The company also offers non-revolving loan products that cover key consumption verticals such as home improvement, education, elective medical care services, and consumer electronics.
9F reported revenues increased 80.5% year-over-yearto $238.6 million in the three months throughSeptember2019. Net income was $1.5million in the third quartercompared with $32.2 million in the same period of 2018. 9F served 1.4 million active borrowers during the trimester. The loan origination volume of loans facilitated through 9F’s marketplace reached $3 billion in the third quarter of 2019, representing an increase of 253.9% year-over-year. Of those loans, 78.6% were funded by financial institutions as 9F has been shifting from peer-to-peer lending under China’s new regulations in the sector.As of June 30, 2019, 9F's institutional funding partners had approved the funding limit in the aggregate amount of over 70 billion yuan ($10.4 billion) under the direct lending program.
In the third quarter of 2019, 9F launched its proprietary platform, 9F Superbrain, powered by artificial intelligence, cloud, and blockchain technologies, that delivers services to financial institution partners and merchant partners. The company has also established a new center in Shenzhen to build an AI and risk management team to streamline its support for overseas markets, strengthen its risk management, and develop new innovative modules. Overseas, 9F is applying for operating licenses to facilitate consumer loans and is exploring possibilities in the verticals ofonline retail, travel, beauty, and social media.