Cash-U Finance- a piece of cake

Grupeer is proud to announce the partnership with a new loan originator- Cash-U Finance. The core mission of Cash-U loans is to help any person, who has appeared in a difficult financial situation alone. Blending together new technology, latest trends in cyber-security and state of the art machine learning algorithms, Cash-U Finance brings easily accessible microloans to anyone across Russia.

Cash-U is a relatively young company- it was founded in May 2017, but started operations in September 2018. The brand-name Cash-U not accidentally is consonant with the cashew nuts. In the Russian language there is an idiom “cracking nuts”, which is a synonym to the English idiom “like a piece of cake” and means something really easy and fast. This brand name aims to tell the story of how the loans of Cash-U are easily accessible in a short period of time.

The founders’ objective was to make the personal loan market highly technological and customer-friendly. They have leveraged their experience in micro-financial organizations from one side and the online marketing experience on the other side. This perfect blend allowed creating the high-tech consumer lending company- Cash-U Finance. Currently, 73 highly skilled professionals are employed in the company.

In the current economic climate working people, from time to time come across the situation, when there is no money left after the salary at the end of the month. In some urgent situations not, everyone can ask friends to borrow money. Moreover, if the person has delayed payment for any bill, the credit history gets spoilt and these clients are undesired by banks. So, here the accessible payday loans come in.

Business model

The lifecycle of the loan consists of 5 stages. In the beginning, the customer registers on the website and link the payment solution to his or her account. At this stage, the document is checked for authenticity. Secondly, is the scoring process. The short questionnaire, which is required by the regulator allows running through Big Data information warehouses (around 30). Approximately 10,000 parameters are analyzed within 20 seconds and are going through the company’s scoring model. The fraud detector is also working at this stage.

The third to fifth stages are receiving the money to the client’s bank card, paying it back and in adverse scenario debt collection. In order to make the debt collection procedure as efficient as possible, four collection phases are designed depending on the number of days of the missed payment. Such a tailored approach to debt collection makes Cash-U Finance a leader in this industry- the debt collection rate is higher than the industry average.

The proprietary scoring model of the company also allows making smart decisions in terms of lending money. This is all possible due to machine learning algorithms, access to large databases and alternative information sources. The scoring model’s approval rate for new clients is 20% and 70% for returning customers.

Customers

A highly technological marketing strategy allows for attracting a quality new audience. Moreover, client loyalty is impressive- more than 80% of clients are taking the loan repeatedly. Currently, Cash-U Finance has 15,000 returning clients. Another key to success is a wide range of products, this allows selling additional products to customers.

In Russia, there is incredible demand for payday loans, so it is important to focus on your target customers. Cash-U Finance aims to serve customers between 25-55 years old with an average income of 20k-30k RUB (Eur280-430) and need the loan due to some unexpected events. The typical customers right now are either men or women, between 25-40 years old with higher education and living in towns with a population above 15,000 people, working and a salary up to Eur570. The interest rate is in line with the regulation and competitors’ rates. The average loan is Eur90 for first-time clients and just over Eur130 for the returning clients. The current loan portfolio is around Eur750,000 and the revenue for 2019 is more than Eur4 million.

Future

The owners of the company have started to work in the payday loan market a long time ago and have witnessed the market without the regulation. Recently a lot of changes were implemented and the regulation got tough. Many players have left the market because of that, but Cash-U Finance contrary got more confident in the regulated environment. This means that the shareholders have the right mentality to develop a strong product.

The shareholders believe that the regulation allows micro-financial organizations to compete with traditional banks and offer more sophisticated products in the future. Another goal of the company is to grow in other markets- in Asia. We hope that with the help of financing Cash-U Finance will raise on Grupeer platform, these goals are easier to reach! Welcome, Cash-U Finance!

 

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