FinVolution Group Achieves Remarkable Financial Growth and International Expansion in 2024
FinVolution Group (NYSE: FINV), a key player in the fintech sector, has recently shared its unaudited financial results for 2024, showcasing significant growth and a robust global presence. The company's annual revenue reached an impressive US$1.8 billion, reflecting a year-over-year increase of 4.1%. Meanwhile, its net profit remained stable at US$327.1 million, illustrating the resilience and strength of its business model amidst a challenging economic landscape.
In terms of transaction volume, FinVolution facilitated an astounding US$28.2 billion in transactions, which marks a 6.1% rise compared to the previous year. Additionally, the outstanding loan balance surged to US$9.8 billion, also up by 6.1%. This performance reinforces FinVolution's leading position in the financial technology market, particularly across the rapidly evolving Pan-Asian region.
Tiezheng Li, CEO of FinVolution Group, expressed confidence in the company's direction, stating that the solid results were achieved through the effective utilization of technological advancements, customer acquisition strategies, and retention practices. In his remarks, he emphasized the company's potential for future growth and its ambition to establish itself as a premier fintech player in the region.
Jiayuan Xu, the CFO of FinVolution, also highlighted the company’s commitment to its shareholders. In 2024, FinVolution allocated US$160.4 million to shareholder returns, representing nearly half (49.1%) of its annual net profit. Over the last several years, the company has returned approximately US$765 million to its investors, which underscores its adherence to enhancing shareholder value and its robust cash flow outlook.
One of the most notable aspects of FinVolution's performance in 2024 was its international growth trajectory. The international segment contributed 21.4% of the company's total revenue in the fourth quarter alone. The firm acquired 2.2 million new borrowers outside of its core Chinese market, signifying an impressive 61% year-over-year increase. This international expansion saw transaction volumes exceeding US$1.4 billion, with the outstanding loan balance in international markets growing to US$232.9 million, representing a remarkable 31% increase.
To facilitate this global expansion, FinVolution obtained crucial financial licenses across multiple jurisdictions. These included a Non-Banking Financial Company (NBFC) license from the Securities and Exchange Commission of Pakistan (SECP) and a strategic acquisition of a majority stake in an Indonesian multi-finance firm. This moves enables FinVolution to diversify its offerings and provide offline consumption loans, catering to various needs such as mobile devices and electronics.
Furthermore, the firm received accreditation as a Special Accessing Entity (SAE) by the Credit Information Corporation (CIC) in the Philippines, enhancing its operational capabilities in that market.
In 2024, FinVolution also made strides in enhancing financial inclusion, particularly in Indonesia, where it recorded a transaction volume of US$506.9 million in the latter half of the year—a significant 11% increase compared to the first half. In addition, the firm enriched its funding network by partnering with Super Bank, bringing its total active funding partners to ten in Indonesia.
In the Philippines, FinVolution led the way by introducing institutional funding through its pioneering loan facilitation model. This collaboration with five top institutional partners marked a significant leap forward for the firm’s operations. Moreover, it expanded its Pay Later services, integrating fintech solutions directly with major e-commerce platforms, thereby improving consumer access to financial products.
Looking toward the future, FinVolution has ambitious plans to derive 50% of its revenue from international markets by the year 2030, driven by its strategy of “Local Excellence, Global Outlook.” With successful entries in Indonesia and the Philippines, the company aims to accelerate its expansion into Pakistan and other markets in 2025.
FinVolution's commitment to innovation has been vital in enhancing its core competencies. In 2024, the company made significant advancements in AI-driven credit technology, including the registration of its proprietary Large Language Model (LLM) named 'Rice Seeds.' This innovative tool is pivotal in streamlining credit risk assessments, fraud detection, and elevating customer interactions.
The introduction of Zeta, an AI-powered application platform, complements its previously launched E-LADF AI development platform. These digital innovations form an intelligent ecosystem that extends through customer acquisition, risk controls, and user engagement, effectively supporting over 1,000 AI applications and enhancing operational efficiency.
Some notable impacts of these innovations include:
As FinVolution scales its operations globally, it remains dedicated to leveraging cutting-edge AI and fintech solutions aimed at promoting financial inclusion and sustainable growth.
In terms of transaction volume, FinVolution facilitated an astounding US$28.2 billion in transactions, which marks a 6.1% rise compared to the previous year. Additionally, the outstanding loan balance surged to US$9.8 billion, also up by 6.1%. This performance reinforces FinVolution's leading position in the financial technology market, particularly across the rapidly evolving Pan-Asian region.
Tiezheng Li, CEO of FinVolution Group, expressed confidence in the company's direction, stating that the solid results were achieved through the effective utilization of technological advancements, customer acquisition strategies, and retention practices. In his remarks, he emphasized the company's potential for future growth and its ambition to establish itself as a premier fintech player in the region.
Jiayuan Xu, the CFO of FinVolution, also highlighted the company’s commitment to its shareholders. In 2024, FinVolution allocated US$160.4 million to shareholder returns, representing nearly half (49.1%) of its annual net profit. Over the last several years, the company has returned approximately US$765 million to its investors, which underscores its adherence to enhancing shareholder value and its robust cash flow outlook.
Accelerating International Growth
One of the most notable aspects of FinVolution's performance in 2024 was its international growth trajectory. The international segment contributed 21.4% of the company's total revenue in the fourth quarter alone. The firm acquired 2.2 million new borrowers outside of its core Chinese market, signifying an impressive 61% year-over-year increase. This international expansion saw transaction volumes exceeding US$1.4 billion, with the outstanding loan balance in international markets growing to US$232.9 million, representing a remarkable 31% increase.
To facilitate this global expansion, FinVolution obtained crucial financial licenses across multiple jurisdictions. These included a Non-Banking Financial Company (NBFC) license from the Securities and Exchange Commission of Pakistan (SECP) and a strategic acquisition of a majority stake in an Indonesian multi-finance firm. This moves enables FinVolution to diversify its offerings and provide offline consumption loans, catering to various needs such as mobile devices and electronics.
Furthermore, the firm received accreditation as a Special Accessing Entity (SAE) by the Credit Information Corporation (CIC) in the Philippines, enhancing its operational capabilities in that market.
Strengthening Partnerships and Expanding Financial Inclusion
In 2024, FinVolution also made strides in enhancing financial inclusion, particularly in Indonesia, where it recorded a transaction volume of US$506.9 million in the latter half of the year—a significant 11% increase compared to the first half. In addition, the firm enriched its funding network by partnering with Super Bank, bringing its total active funding partners to ten in Indonesia.
In the Philippines, FinVolution led the way by introducing institutional funding through its pioneering loan facilitation model. This collaboration with five top institutional partners marked a significant leap forward for the firm’s operations. Moreover, it expanded its Pay Later services, integrating fintech solutions directly with major e-commerce platforms, thereby improving consumer access to financial products.
Looking toward the future, FinVolution has ambitious plans to derive 50% of its revenue from international markets by the year 2030, driven by its strategy of “Local Excellence, Global Outlook.” With successful entries in Indonesia and the Philippines, the company aims to accelerate its expansion into Pakistan and other markets in 2025.
Driving Innovation with AI-Powered Credit Technology
FinVolution's commitment to innovation has been vital in enhancing its core competencies. In 2024, the company made significant advancements in AI-driven credit technology, including the registration of its proprietary Large Language Model (LLM) named 'Rice Seeds.' This innovative tool is pivotal in streamlining credit risk assessments, fraud detection, and elevating customer interactions.
The introduction of Zeta, an AI-powered application platform, complements its previously launched E-LADF AI development platform. These digital innovations form an intelligent ecosystem that extends through customer acquisition, risk controls, and user engagement, effectively supporting over 1,000 AI applications and enhancing operational efficiency.
Some notable impacts of these innovations include:
- - Customer Acquisition: AI-driven advertising technologies led to a 60% reduction in marketing material production costs.
- - Risk Management: Proprietary visual AI models achieved a fraud detection accuracy of 99%, employing advanced algorithms for background recognition and ID verification.
- - Customer Engagement: Optimized strategies using AI-assisted behavioral analysis increased user conversion rates by 9%.
- - Customer Support: AI-generated call summaries and sentiment analysis improved operational efficiency by a remarkable factor of 20.
As FinVolution scales its operations globally, it remains dedicated to leveraging cutting-edge AI and fintech solutions aimed at promoting financial inclusion and sustainable growth.
Topics Financial Services & Investing）
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