FinVolution Group, previously known as PPDAI (PaiPaiDai), was the first P2P (peer-to-peer) lending company in China. With more than a decade’s experience in the online consumer financial industry, the group has developed its core capabilities and a business model that is working well in China. It has gained extensive knowledge and experience in credit risk assessment, fraud detection, big data and artificial intelligence. Its online platform links underserved individual borrowers with financial institutions.
By showing how FinVolution has developed its competitive advantages and built a successful online lending business model in China, this case provides an opportunity for students to discuss what factors have led to the success of a fintech company. It raises the question of whether a successful fintech business model developed in one country can be ported to another country. It also highlights the regulatory change challenges facing fintech companies, especially P2P lending companies.
1. To allow students to learn how fintech companies can leverage on emerging technologies to develop competitive advantages.
2. To provide an opportunity for students to discuss to what extent a successful business model that works in one country can be ported to another.
3. To help students to analyse and understand the risks of change regulations facing fintech companies.