Based on the currently disclosed financial report data, various fintech companies are 'aggressively expanding overseas,' "Su Xiaorui, a senior researcher at Suxi Zhiyan, said in an interview with reporters. From the current overseas situation, Latin America and Southeast Asia are the key markets targeted by fintech companies. Xinye Technology and Jiayin Technology have made layouts in Indonesia, while Lexin and Jiayin Technology have achieved good growth in Mexico.
The reporter also noticed that the financial report shows that Lexin has made overseas business an important strategic direction, promoting the accelerated development of overseas business. Its lending scale in the Mexican market increased by 61% month on month in the second quarter, and its revenue increased by 113% month on month.
In the international market, Xinye Technology has established deeply localized fintech platforms in Indonesia and the Philippines, and conducted technology service business in Latin America. According to the financial report, in the second quarter of this year, Xinye Technology's international business achieved a transaction volume of 2.3 billion yuan, a year-on-year increase of 27.8%. Among them, the brand performance of the Philippine business exceeded expectations, with a year-on-year increase of 140% in transaction volume for the quarter. In the first half of 2024, Xinye Technology's trading volume in the international market rose to 4.5 billion yuan, a year-on-year increase of 32.4%. The outstanding balance in the international market reached 1.4 billion yuan, a year-on-year increase of 27.3%. As of June 30, 2024, Xinye Technology has accumulated 5.6 million borrowers in the international market, an increase of 40% compared to June 30, 2023.
In the first half of 2024, the overseas customer revenue contribution of Financial OneConnect increased by 14.8% year-on-year, and its proportion in third-party revenue increased to 21.2% (excluding data from the virtual banking business sector), an increase of 5.6 percentage points year-on-year. As of now, OneConnect's financial services cover 20 countries and regions including South Africa, Singapore, Thailand, Malaysia, Indonesia, the United Arab Emirates, the Philippines, and Vietnam, serving a total of 186 overseas financial institutions.
Su Xiaorui said that fintech companies are actively expanding overseas, partly because the pioneers of fintech going global have been expanding overseas for more than 5 years and have achieved good overseas performance growth, which has a great attraction to other peer institutions; On the other hand, it is also due to the fact that the overall domestic consumer finance business is currently in a state of contraction. Actively expanding overseas can also help create a second revenue growth curve, thereby boosting the company's performance.
Wang Shiqiang, a senior researcher at the Bingjian Technology Research Institute, also pointed out in an interview with reporters that based on their financial reports, these fintech institutions have been focusing on overseas markets in recent years and are making efforts to expand their business overseas. "Due to the large number of domestic participants in the financial technology industry, the relatively fierce competition, the limited growth of potential customers, and the deep participation of major Internet giants, the space for growth is now limited. Therefore, the overseas layout is conducive to opening up the performance growth space of various financial technology institutions, giving small and medium-sized shareholders unlimited imagination, which is conducive to helping the recovery of each share price."
However, Wang Shiqiang also pointed out that currently, some fintech companies have seen rapid growth in their overseas business, but their business scale is still relatively small, and they still need to increase investment in overseas manpower, research and development, and marketing.