LexinFintech Holdings Ltd., a leading online consumption and finance platform for new generation consumers and users in China, announced the appointment of Mr. Jayden Yang Qiao as the Company’s chief risk officer, effective July 16, 2021.
Mr. Qiao joined Lexin earlier this year as the Company’s vice president, responsible for Lexin’s risk management. Since joining Lexin, Mr. Qiao has built out a high-quality credit risk control team and enhanced Lexin’s credit control system, further driving the continued improvement in the Company’s credit quality. As reported in the Company’s financial results for the first quarter, Lexin’s 90 day+ delinquency rate1 was at 1.84% as of March 31, 2021 and the first payment default rate (30 day+)2 has been below 1% for 8 months as of March 31, 2021, effectively resolving the pandemic-related risks while maintaining a high level of performance. To date as of the end of the 2nd quarter, Lexin’s coincident 1+ days past due3 is at 4.92%, as compared to last year’s 8.08% for the same period, representing a 40% decrease. The Company’s latest recovery rates for bad debts4 has reached an all-time high, improving by 30% as compared to the same period last year.
Read More: iPipeline Teams with Symetra to Insure Term Life Customers in Minutes
90 day+ delinquency ratio refers to outstanding principal balance of on- and off-balance sheet loans that were 90 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans on our platform as of a specific date. On-balance sheet loans that were over 179 calendar days past due and charged off are not included in the delinquency rate calculation. Off-balance sheet loans that were over 179 calendar days past due are assumed charged off and not included in the delinquency rate calculation. The Company does not distinguish on the basis of the on- or off-balance sheet treatment in monitoring the credit risks of borrowers and the delinquency status of loans.
Loan balance with first payment day past due 30+ over total loan origination.
Coincident 1+ days past due refers to outstanding principal balance of on- and off-balance sheet loans that were 1 to 179 calendar days past due as a percentage of the total outstanding principal balance of on- and off-balance sheet loans on our platform as of a specific date. On-balance sheet loans that were over 179 calendar days past due and charged off are not included in the delinquency rate calculation. Off-balance sheet loans that were over 179 calendar days past due are assumed charged off and not included in the delinquency rate calculation. The Company does not distinguish on the basis of the on- or off-balance sheet treatment in monitoring the credit risks of borrowers and the delinquency status of loans.
Read More: Verizon Business and Mastercard Partner to Bring 5G to the Global Payments Industry
Actual recovered amounts divided by cumulative bad debts at the beginning of the month.
Mr. Qiao has over 15 years of experience in a variety of management positions in leading multinational and technology companies in different countries. Prior to joining Lexin, Mr. Qiao held various senior positions with JD Digits from 2016 to 2020, including as the chief executive officer of JD Digits’ subsidiary, ZRobot. From 2015 to 2016, Mr. Qiao was the co-founder and chief risk officer of Shanghai Niuwa Internet Financial Information Service. From 2006 to 2015, Mr. Qiao held various senior managerial and other positions with Discover Financial Services in both the U.S. and China. In addition, Mr. Qiao is the holder of numerous patents and copyrights for his inventions. Mr. Qiao received his bachelor’s degree in economics from the University of Colorado, his dual master’s degree in business administration and economics from the University of Iowa, and a master’s degree in computer science from the University of Chicago. In addition, Mr. Qiao is also a member of the expert advisory committee of the Chartered Global Financial Technology Master project at the Shanghai Advanced Institute of Finance (SAIF) of Shanghai Jiaotong University, a member of the “Young Experts” of the Internet Society of China (ISC), and a member of the evaluation committee of the Shenzhen Credit Professionals Association.
“We are delighted to promote Mr. Qiao as our new chief risk officer,” said Mr. Jay Wenjie Xiao, Lexin’s chairman and chief executive officer. “Mr. Qiao’s promotion is a reflection of our strong focus on risk control, and the confidence we have in our current and future asset quality. We believe Mr. Qiao will further use his expertise in his new role as the chief risk officer to further improve, enhance, and develop our risk control systems.”
“I am honored by the opportunity to become Lexin’s chief risk officer,” said Mr. Qiao. “I look forward to my new role and the opportunity to further improve our credit quality and deliver value for our shareholders.”
Read More: Govolution by Deluxe and Fulton Bank Announce Strategic Partnership
