Yirendai is a leading online consumer finance marketplace in China connecting investors and individual borrowers. The Company has facilitated approximately RMB 32.3 billion in loans from our inception in March 2012 through December 31, 2016.
Yirendai’s online platform automates key aspects of its operations and enables the Company to efficiently match borrowers with investors and execute loan transactions. Leveraging the extensive experience of Yirendai’s parent company CreditEase, Yirendai is able to provide an effective solution to address largely underserved investor and individual borrower demand in China. CreditEase is a large financial services company focusing on providing inclusive finance and wealth management products and services in China. Yirendai’s borrowers and investors come through a variety of channels, including online sources, such as the internet and mobile applications, as well as offline sources, such as referrals from CreditEase’s on-the-ground sales network.
Yirendai is strategically focused on prime borrowers, comprising of credit card holders with salary income, as members of this group tend to be more creditworthy and more receptive to internet finance solutions. Yirendai’s online marketplace offers qualified borrowers who successfully meet the Company’s borrower requirements with quick and convenient access to affordable credit at competitive prices. All of the loans facilitated through the Yirendai marketplace feature fixed interest rates. To provide a transparent marketplace, the interest rates, service fees and other charges are all clearly disclosed to borrowers upfront.
Yirendai’s online marketplace provides investors with attractive returns with investment thresholds as low as RMB100 (US$15.7). Investors have the option to individually select specific loans to invest in or use the Company’s automated investing tool that identifies and selects loans on the basis of a targeted return. Yirendai also offer investors a risk reserve fund service with the aim of limiting losses to investors from borrower defaults. In addition, Yirendai provides investors with access to a liquid secondary market, giving them an opportunity to exit their investments before the underlying loans become due.
Yirendai has an industry leading risk management system with proprietary credit decisioning and fraud detection modules. The Company accumulates data from its expanding borrower base and CreditEase’s extensive database to continually enhance the sophistication and reliability of its risk management system. Yirendai’s proprietary risk management system enables the Company to assess the creditworthiness of borrowers more effectively in a market where reliable credit scores and borrower databases are still at an early stage of development. This system also enables the Company to appropriately price the risks associated with borrowers and offer quality loan investment opportunities to investors.
Yirendai primarily generates revenues from fees charged for services in matching investors with individual borrowers and for other services over the life of a loan. The Company charges borrowers transaction fees for services provided through its platform in facilitating loan transactions, and charges investors service fees for using its automated investing tool or self-directed investing tool. As an information intermediary, Yirendai does not use its own capital to invest in loans facilitated through our marketplace.