Niwodai (Nasdaq: JFIN) founded in 2011 is a leading finance company in China. Niwodai efficiently connects individual investors and borrowers through a highly automated and smooth transaction process making loan approval and operation possible.
Borrowers access reasonable interest rate loans and are charged for service fees, typically for featuring loan facilitation and post- origination, while investors provide the reliable funding in exchange for earning interest, enabling the marketplace to cater to mutual demands.
We strategically focused on facilitating mid-to long-term consumer loans with an average term of 12 months or more, as we believe such products are best positioned to generate attractive returns for our investors, and at the same time, capture the financing needs of quality borrowers. Currently, we offer online standard loan products, with a term of 12 months. According to iResearch, we were the third largest individual finance marketplace in China in terms of transaction volume in the first half of 2018 for mid- to long-term loans.
We currently operate our business as a pure online marketplace through which we match investors and borrowers. We neither use our own capital to invest in loans facilitated through our marketplace nor provide loan guarantees to our investors other than our investor assurance program managed by us. In addition, as our online marketplace covers the entire loan transaction process, we are able to minimize the need for physical infrastructure, lower our operating costs, and provide a flexible, cost-efficient and time-saving mechanism for matching investors and borrowers.
Niwodai cooperates with third parties to manage investors’ risk exposure and secure their assets under a loan assurance program, and introduces a secondary loan market where investors can sell their loan assets to other approved investors.
We primarily utilize diverse borrower online acquisition channels including online marketing channels such as websites, search engines, app stores as well as online partnerships with online traffic marketplaces which have access to quality borrowers. We engaged most of our borrowers through online marketing channels in 2017. Our open and comprehensive risk management approach also helps us acquire high-quality borrowers. After we exhaust our internal credit assessment model and process, we engage reputable third-party expert consultants to help further screen and re-assess the creditworthiness of applicants and identify potential borrowers. We selectively collaborate with third-party expert consultants who have demonstrated strong credit assessment capabilities with a strong track record of maintaining superior credit quality while achieving reasonable delinquency rate.