2023 Financial Report | FinVolution Group Experienced Strong Business Growth and Global Expansion in 2023

FinVolution Group (NYSE: FINV), a leading fintech company, today announced its financial results for the full year of 2023, highlighting significant global expansion and technological advancements throughout the year.

In 2023, FinVolution Group recorded a net revenue of US$1,767.3 million, marking a growth of 12.7% year-on-year, and a net profit of US$335.7 million, up 4.5%. Major operational indicators also experienced an uptick, with US$27.4 billion in facilitated transaction volume and US$9.5 billion in loan balance, up 10.8% and 4.3%, respectively.

Continued Business Expansion

Established in 2007, FinVolution is committed to providing inclusive finance solutions to underserved borrowers and small business owners in the pan-Asian region. 

Despite macroeconomic challenges in 2023, the Group continued to expand its business globally. The cumulative number of borrowers served in China, Indonesia, and the Philippines reached nearly 30 million, a net increase of around 3 million new borrowers over the previous year. 

The company's funding sources became more diversified as well, with partners expanding to 94 financial institutions as of December 31, 2023.

Since 2018, FinVolution has consistently returned value to its shareholders through a combination of share repurchases and dividends. In 2023, the company returned approximately US$160 million to its shareholders, comprising US$62 million in dividends and US$98 million through share buybacks.

Over the past six years, FinVolution has cumulatively repurchased shares totaling around US$280 million, demonstrating its confidence in its business outlook and its commitment to enhancing shareholder value.

Global Reach

FinVolution has strategically extended its global footprint since 2018, establishing localized online lending platforms "AdaKami" in Indonesia and "JuanHand" in the Philippines. Concurrently, it has empowered fintech companies across six countries with its industry-leading AI voice service platform "Blu."

As FinVolution cemented its market foothold in Indonesia and the Philippines, its overseas lending platforms had cumulatively served 4.8 million borrowers by the end of 2023.

A larger user base contributed to an 85.9% year-over-year increase in international revenue to US$301 million. Throughout 2023, international transaction volume and outstanding loan balance soared to US$1.1 billion and US$177.8 million, up 84.7% and 57.5%, respectively.

FinVolution’s Philippine brand has become one of the strongest players in the local market, with new borrowers increasing over 188%, transaction volume and outstanding loan balance surging over 200% year-over-year. In 2023, the brand was honored to be a founding member of the Consumer Lending Association of the Philippines.

Tiezheng Li, CEO of FinVolution Group, commented, “Our ‘Local Focus, Global Outlook’ strategy will continue to guide us as we embark on 2024. Going forward, we remain committed to serving borrowers in our existing markets while working to deliver innovative financial services to more borrowers in new markets, propelling our healthy and sustainable development.” 

Technological Innovation

As a tech-driven company, FinVolution has also crafted an industry-leading suite of comprehensive technology solutions, adapting to financial markets in different countries. The company increased its research and development investment by 4% year-on-year in 2023 to US$72 million. Breakthroughs were achieved in AI microfinance service platform construction, visual anti-fraud technology, and multi-language chatbot.

In view of a rapidly evolving international business landscape and a diverse overseas market environment, FinVolution's R&D team has developed anti-fraud technology tailored to global markets. They utilized accumulated expertise in graph algorithms and visual algorithms to accurately identify and block frauds powered by generative AI, with an identification accuracy rate of 98.8% and a recall rate of 95.3%.

FinVolution continued to upgrade its multi-language chatbot “Blu” in 2023, integrating Chinese, English, Spanish, Tagalog, and Bahasa into the languages covered by this flagship product. The accuracy rates of the chatbot in voice recognition and effective interaction intent recognition both exceed 90%, leading to a 20% improvement in business scenario conversion effects. 

AI chatbot is now widely used in customer service processes on FinVolution’s platforms, handling 80% of customer communication tasks and serving more than 20 fintech platforms across six countries.

FinVolution has also strengthened its commitment to small business owners through technology and product development. In 2023, the company launched "Hailu Cloud System," an intelligent platform for small- and micro-merchant services in China. The system covers the entire microfinance business processes, enhancing the digital operational capacity of small- and micro-enterprises and offline stores. Since its launch, the Hailu Cloud System has served over 500,000 users.

Optimization of Risk Control System

In 2023, FinVolution maintained a stable low-level credit risk profile and its percentage of better quality borrowers (clients with the lowest financial risk) held steady at 94.5%, thanks to its industry-leading credit risk assessment and fraud detection technologies. 

Throughout the year, FinVolution intervened in suspected fraudulent activities an average 4,000 times a day, on the back of its leading risk control system, which features big data analytics, artificial intelligence, and voiceprint recognition at its core. Throughout the year, it thwarted over 30,000 fraud attempts, enabling users and institutions to avoid losses totaling nearly US$77.5 million.