Zoe Zou's questions to Lexinfintech Holdings Ltd (LX) leadership • Q3 2024
Question
Zoe Zou from CLSA asked for an elaboration on the measures taken in Q3 to optimize new loan risk levels, the expected progress of the overall asset quality recovery, and for more details on the future plans and business impact of the newly launched Intelligent Credit Platform (ICP) model.
Answer
CRO Arvin Qiao, via translator Mandy Dong, detailed several risk management improvements, including focusing on high-quality acquisition channels, building joint models, and enhancing anti-fraud capabilities, which led to a 50% decrease in the FPD7 for new customers compared to the Q4 2023 peak. CEO Jay Xiao explained that the ICP is a capital-light, profit-sharing model that expands Lexin's addressable market and smooths risk across credit cycles by matching customers with funding partners that have complementary risk appetites.