FinVolution Group (FINV) experienced an incline of 4.55% in the premarket after the company raised guidance for full-year 2021. However, the last trading session closed at $5.93 with an increase of 1.54%.
Guidance for Full Year 2021 by FINV
FINV announced on 10th October 2021 that it has raised guidance for full-year 2021. The Company has revised its total transaction volume projection for the full year 2021 to a range of RMB130 billion to RMB135 billion. Moreover, this reflects a year-on-year rise of 102.8 percent to 110.6 percent, based on its current assessment of operational and market circumstances. The higher guidance reflected increased certainty in business trends and the opportunity to obtain further momentum as the Company continues to advance its projects in global expansion, small company facilitation, and continued investment in technology. Furthermore, the percentage of loans enabled at or below 24 percent per year has grown to 77 percent in September 2021, owing to the effective execution of obtaining better-quality clients.
Strategic Cooperation with PT Bank Jago
On 11th October 2021, FINV announced that PT Bank Jago has linked a strategic collaboration deal with AdaKami. Bank Jago is a technology-based bank that offers life-centric finance software that makes money management easy, collaborative, and inventive. The goal of the cooperation is to improve collaboration within the digital financial ecosystem. It makes loans more accessible to help the economy and speeds up the process of financial inclusion.
Issuance of RMB200 Million Asset-Backed Securities
On 29th September 2021, FINV announced the completion of an asset-backed securities issue worth RMB200 million. Furthermore, FinVolution Group’s 90-day-plus percentage fell to 1.01 percent as of June 30, 2021. The successful issuance of the first ABS is a significant milestone that confirms the successful move to higher-quality borrowers. This has been aided by cutting-edge technology and a comprehensive credit risk management system. ABS will become a significant route for high-quality finance in the future as institutional funding partners’ interest. Lastly, FINV will continue to attract new borrowers with higher credit quality and produce a sustainable return for all of the stakeholders.
