SHANGHAI, Dec. 4, 2017 /PRNewswire/ -- China Rapid Finance
Limited ("China Rapid Finance" or the "Company") (NYSE: XRF), a
leading online consumer lending marketplace, today announced that
it believes the long term
impact of the principles outlined in the Notice on the Rectification of Cash Loan Business
(the "Rectification Notice") issued on December 1, 2017 will be favorable to its
business, as the practices on its marketplace are consistent with
the principles outlined in the Rectification Notice.
"The Rectification Notice
recognizes the role that the cash loan business has played in
serving the consumption needs of a segment of China's population," said Dr. Zane Wang, Chairman and CEO of China Rapid
Finance. "At the same time, regulators identified some
irresponsible lending activities, such as over-extended credit,
borrowing across multiple platforms, aggressive collection activities, extremely
high charge rates, and privacy breach. From our inception, we
have not permitted these practices on our
platform."
China Rapid Finance charges comparatively low rates, close to or
lower than the overall fee rate of cash advances charged by credit
card companies. Company policy prohibits customers from borrowing
new loans until their prior loans have been fully repaid without
delinquency and forbids any overly
aggressive collection behaviors. To date, no borrowers on
the Company's platform have received loan extensions and all have
repaid past loans in full prior to receiving new loans. The Company
has also made significant investments in infrastructure for
information security to protect borrower privacy.
The local regulators are assigned to implement the requirements
of the Rectification Notice. China
Rapid Finance's management team is working closely with regulators
and will make any adjustments, if necessary, to ensure full
regulatory compliance.
As the industry consolidates and matures, the Company believes
that its 16 years' on-the-ground experience in credit risk
management and behavioral data analytics will increasingly
differentiate it as a leading marketplace.
"The Rectification Notice is a
major step toward creating a rational and sustainable market," said
Dr. Wang. "We believe the
principles contained in the Rectification Notice will prove beneficial
to our responsible approach to the market."
About China Rapid Finance
China Rapid Finance operates one of China's largest consumer lending marketplaces
in terms of total number of loans, having facilitated over 27
million loans to over 3.7 million unique borrowers as of
September 30, 2017 at a significantly
lower borrowing cost than many competitors. The Company deploys
machine learning and proprietary decisioning technology to
facilitate affordable digital credit for one of the world's largest
untapped consumer credit markets: China's 500 million Emerging Middle-class
Mobile Active consumers (EMMAs). China Rapid Finance operates a
pure play marketplace, and does not take credit risk. The Company
utilizes its technology to efficiently select quality EMMAs for its
platform. China Rapid Finance facilitates smaller, shorter-term
initial loans to these EMMAs and then enables larger, longer-term
loans for repeat borrowers who demonstrate positive credit
behavior. This "low and grow" strategy enables the Company to
attract and retain high quality EMMAs who generate significant
lifetime customer value. China Rapid Finance was founded by Dr.
Zane Wang, who has decades of
consumer credit experience in both the U.S. and China, and is governed by a global board of
directors. For more information, please visit
http://ChinaRapidFinance.InvestorRoom.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements can be identified by terminology such
as "may," "will," "expects," "anticipates," "aims," "future,"
"intends," "plans," "believes," "estimates," "likely to" and
similar statements. Among other things, quotations from management
in this announcement, China Rapid Finance's financial outlook as
well as China Rapid Finance's strategic and operational plans
contain forward-looking statements. China Rapid Finance may also
make written or oral forward-looking statements in its reports
filed with, or furnished to, the U.S. Securities and Exchange
Commission, in its annual reports to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about China
Rapid Finance's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to the following: unexpected
difficulties in China Rapid
Finance's pursuit of its goals and strategies; the unexpected
developments, including slow growth, in the consumer lending
market; reduced demand for, and market acceptance of, China Rapid
Finance's products and services; difficulties keeping and
strengthening relationships with borrowers or investors;
difficulties of expanding data and channel partnerships;
potentially costly servicing activities; competition in the
consumer lending market; changes in PRC laws, regulations and
governmental policies; and general economic and business conditions
in the regions where China Rapid Finance provides products and
services. Further information regarding these and other risks is
included in China Rapid Finance's
reports filed with, or furnished to, the U.S. Securities and
Exchange Commission. All information provided in this announcement
is as of the date of this announcement, and China Rapid Finance
undertakes no duty to update such information except as required
under applicable law.
Investor Relations Contacts:
China Rapid Finance
Mao Mao
Tel: +1 (646) 308-1635
Email: IR@crfchina.com
IRResults
Gretchen Lium
Tel: +1 (303) 638-9185
Email: gretchen@irresults.com
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SOURCE China Rapid Finance