Lufax Ping An Puhui Retail Lending Platform Launches AI-Powered Smart Lending Solution



Xinyun Optimizes Loan Applications for Small and Micro Enterprises

SHANGHAI, June 16, 2021– (BUSINESS WIRING) – Lufax Holding Ltd (“Lufax” or “Company”) (NYSE: LU), a leading personal financial services platform in China, announced today that its subsidiary, Ping An Puhui (“Puhui”), has launched an intelligent Artificial Intelligence (AI) Loan Solution Called “Xingyun”, it uses AI to simplify the loan application process by reducing the average time it takes to apply for a loan for small and micro clients by 44% to improve their access to finance.

Limited access to finance for small and micro enterprises remains a challenge for the Chinese FinTech industry. The lending process can be confusing and lengthy, requiring multiple application forms and long waiting times. Lufax and its 100 percent subsidiary Puhui recognized the area as a bottleneck preventing reliable businesses from accessing capital and sought to lower barriers and revolutionize the process for small and micro businesses. With more than 15 years of rich experience in financial services for small and micro enterprises, Puhui, drawing on its extensive track record combined with innovative technology, has developed the Xingyun Smart Lending Solution.

Xinyun Smart Loan Solution includes five innovative elements that have improved the lending process:

  • It uses artificial intelligence imaging technology to create remote face-to-face communication throughout the entire application and service process. In 2019, Puhui became one of the few financial institutions in the world to use artificial intelligence imaging technology for online loan appraisal when it applied the technology to conduct loan interviews. Launch of Xingyun solution extends AI professional services to the entire borrowing process with 14 professional knowledge databases.

  • By automating text entry, Xingyun simplifies the customer’s application process. It uses technologies such as Optical Character Recognition (OCR), Automatic Speech Recognition (ASR), and Natural Language Processing (NLP) to allow borrowers to send documents and information to an AI assistant through face-to-face communication instead of typing text into the traditional loan process. …

  • Xingyun reduces friction when applying for a loan and speeds up the loan granting process. It can perform a direct data connection while the borrower talks to the AI ​​assistant, effectively reducing the borrower’s waiting time and ensuring a smooth disbursement of loans and borrowings.

  • Xingyun can also provide real-time risk control assessment results. During the traditional credit risk control process, clients usually need to provide many documents, often requiring multiple visits and interactions with credit representatives, which creates a lengthy and often redundant application process. With Xinyun, borrowers only need to talk to an AI assistant who will collect and share information, while a digital risk management assessment is done in the background, ensuring instant approval.

  • Finally, Xinyun provides customers with a secure lending process. Relying on artificial intelligence technology, it protects against user data leaks, seamlessly integrates customer protection measures, and registers the funding process through accredited third parties. It also comprehensively protects clients’ right to information and self-choice, providing a safe and reliable credit experience for small and micro enterprises.

Since the beginning of Xinyun’s internal testing in June last year, Puhui has made notable improvements in its credit facilitation business. Getting loans from clients has become more streamlined and hassle-free as the average number of times a loan applicant terminates and resumes the application process has decreased by 47%. The average time spent on the process of applying for a loan for small and micro clients was reduced by 44%. In addition, the number of customer complaints related to loans was reduced by 50%, thus ensuring effective consumer protection. When internal testing is over, Puhui’s technology team is working to improve Xingyun’s customer coverage to roll out the solution to its entire customer base.

Puhui sees many applications in the industry for Xingyun, including not only serving its own small and micro enterprise customers, but also sharing the solution with the industry to jointly improve the efficiency of serving small and micro enterprises and the real economy to ultimately improve the customer experience. Puhui has a fully collaborative business model with approximately 50 financial institutions and 200 other institutions, which is a cornerstone for Xingyun in empowering the entire ecosystem of microcredit services. Currently, “Xingyun” has been implemented by a number of partner organizations in the Ping An ecosystem and is aimed at wider adoption among lending institutions in the future.

Puhui is the second largest retail lending facilitation platform among non-traditional financial institutions in China, according to research by Oliver Wyman. With its rich product line, reliable service channels combining offline-online (O2O) capabilities, intelligent risk management, advanced lending technology and efficient O2O process, Puhui provides small and micro-enterprises with a wide range of lending solutions.

In the first quarter of 2021, the outstanding balance of loans managed by Lufax through the Puhui platform increased to 582.6 billion yuan (USD 88.9 billion), while the total number of borrowers increased to about 15.1 million. 75.7% of new loans granted were issued to small business owners during the first quarter of 2021, up almost 10 percentage points over the same period in 2020. Puhui intends to continue to focus on serving small and micro enterprises and the real economy.

About Lufax Holding Ltd

Lufax Holding Ltd is a leading personal financial services platform in China. Lufax Holding Ltd mainly uses its customer-focused product offerings and offline online channels to provide retail lending facilitation services to small business owners and employees in China, as well as customized wealth management solutions for China’s rapidly growing middle class. The company has implemented a unique, lightweight, “staggered” business model that combines specialized technology applications, rich data, and financial services expertise to effectively deliver the right products to the right customers.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made in accordance with the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will”, “expects”, “expects”, “future,” “intends”, “plans”, “believes”, “estimates” and similar statements. Statements that are not historical fact, including Lufax’s beliefs and expectations, are forward-looking statements. Lufax bases these forward-looking statements primarily on its current expectations and forecasts of future events and financial trends, which involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the control of the Company. … These forward-looking statements include, but are not limited to, statements of the objectives and strategies of Lufax; Lufax’s future business development, financial condition and performance; expected changes in Lufax’s income, expenses or expenses; expected growth in retail lending and capital management markets; Lufax’s expectations of demand and market acceptance of its services; Lufax’s expectations regarding relationships with borrowers, platform investors, funding sources, product suppliers and other business partners; general economic and business conditions; and government policies and regulations related to the industry in which Lufax operates. Forward-looking statements involve inherent risks and uncertainties. Additional information on these and other risks is included in Lufax documents to the US Securities and Exchange Commission. All information provided in this press release is current as of the date of this press release and Lufax assumes no obligation to update any forward-looking statements, except as required by applicable law.

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Lufax Holding Ltd

Edmond Lococo
Tel: +86 138-1079-1408


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