The high-quality development of finance requires facing the essence of finance, putting the people at the center, and truly achieving the grand goal of becoming a financial powerhouse. In this grand strategic context, as an empowering institution for small and micro financing services, LuJinSuo Holdings adheres to the core values of the people and practices inclusive finance as the value cornerstone of its strategic and business development. It grasps the three key points of "expanding scope", "digging depth", and "targeting accuracy", continuously improves its financial product innovation ability and service system construction, and is committed to embedding technology into various aspects of services, Implement digital inclusive finance and meet the financing needs of inclusive small and micro enterprises with timely financial solutions that save time, effort, and money.
Expansion: Comprehensive expansion, releasing new vitality for development
The Central Financial Work Conference proposed five major articles on "doing a good job in technology finance, green finance, inclusive finance, pension finance, and digital finance", which puts forward new requirements for the high-quality development of inclusive finance.
Inclusive finance is not only an economic activity, but also contains a value concept. While protecting the resilience of the Chinese economy and promoting the endogenous driving force of the market, Lujin Holdings will also implement the principle of "finance for the people", promote the construction of a small and micro service ecosystem, and cover a wider range of inclusive small and micro enterprises.
Lujin Holdings has strengthened its guarantee responsibilities through its subsidiary Ping An Puhui Financing Guarantee Co., Ltd. (referred to as Ping An Puhui), continuously increasing its risk bearing ratio, and helping to build a long-term mechanism for small and micro financing support through the joint efforts of banks and guarantee parties, such as daring to lend, willing to lend, able to lend, and able to lend, to promote the quality and efficiency of financial services.
As of September 30, 2023, LuJinSuo Holdings has served approximately 20 million customers and enabled a loan balance of 366.3 billion yuan. In the first three quarters of 2023, Lujin Holdings provided unsecured loan services to 179000 small and micro business owners.
In response to the country's policy of expanding domestic demand, Lujin Holdings has increased the supply of consumer credit to help improve and upgrade people's consumption. In the first three quarters, consumer finance business loans amounted to 52.4 billion yuan, serving approximately 5 million customers in total. Ping An Consumer Finance Company, a subsidiary of Lujinsuo Holdings, has established an online service model and carried out online platform cooperation to conveniently and efficiently reach long tail customers in third tier and below cities. In addition, Ping An Consumer Finance Company also fully utilizes the advantages of its main products, such as online application and convenient credit granting, to continuously strengthen consumer support for new citizens by analyzing consumer demand and formulating preferential strategies.
From the data, it can be seen that the value commitments held by Lujin are constantly being implemented. LuJinSuo Holdings continuously explores specialized and distinctive products and service models to enhance the efficiency of inclusive financial services.
Digging deeper: Striving for excellence, improving quality and efficiency, and upgrading again
This year is the fifth year that Mr. and Mrs. Zhang have been engaged in food business in Shanghai. From their initial husband and wife store to their current small and micro enterprise, their annual revenue has reached over 20 million yuan. But on the road to expanding business, funding has become a challenge. Ping An Puhui learned about the needs of Mr. and Mrs. Zhang and customized a financing plan for them as soon as possible. On the same day, they successfully applied for 1 million yuan of funding through the Ping An Puhui Luhuirong APP online operation in just 15 minutes. "The bank takes at least a week, and various materials and procedures are required to approve it. I didn't expect Ping An Puhui to be so convenient, which really surprised me!" Mr. Zhang, who experienced Ping An Puhui's AI fast loan, couldn't conceal his surprise.
And behind this, it all benefits from Ping An's inclusive coverage of the front, middle, and back-end systematic "AI+O2O" service model.
The AI intelligent loan solution "Xingyun" in the front-end application process can be regarded as a major highlight in its intelligent service system. This solution focuses on artificial intelligence and transforms the small and micro credit business process, solving pain points such as complex original business processes, multiple application experience inputs, waiting times, and questions, significantly reducing user waiting time. Xingyun has served over 15.72 million people and obtained a total of 207 billion yuan in loans. The breakpoints in the loan application process have been reduced by 31%, and the system throughput has increased by four times. It has the ability to simultaneously serve hundreds of customers.
In addition, Lujin Holdings is continuously upgrading its intelligent customer service functions, revitalizing its customer service interface, and adding AI virtual human navigation functions to achieve differentiated services for thousands of people and faces. In the first three quarters, the intelligent customer service platform has served a total of 6.2 million customers, with a resolution rate of over 82%.
Through technology empowerment business, Lujin Holdings promotes inclusive finance by reducing costs and increasing efficiency, providing customers with "time-saving, worry free, and money saving" financing services. The financial report shows that the total expenses of Lujin Holdings in the third quarter of 2023 decreased by 30.1% year-on-year, and the average direct sales production capacity increased by 25.4% month on month.
Sight accuracy: precise force, promoting high-quality development
Caring for specific people and promoting the long-term development of the private economy, returning to the starting point, are all part of the mission of Lujin Holdings: "Economy is the body, finance is the bloodline, and serving the development of the real economy is the duty and purpose of finance.". Based on the natural advantages of combining online and offline service models, Lujinsuo Holdings continuously conducts strategic reforms, actively explores and optimizes business models and products, and strives to achieve "precise drip irrigation" by providing targeted and refined services to small and micro enterprises.
Lujinsuo Holdings focuses on supporting small and micro enterprises in key industries, with new loans concentrated in manufacturing, wholesale and retail, service industry, catering, construction engineering, and other industries related to national economy and people's livelihood.
In terms of optimizing financing service structure, Lujin Holdings has increased precise support in Guangdong, Jiangsu, Shandong, Zhejiang, Hebei and other regions. This means that Lujin Holdings is actively responding to the national support policies for small and micro enterprises, and taking practical actions to help unleash the economic vitality of small and micro enterprises.
In terms of green finance, Ping An Puhui has launched a green financing preferential plan since 2021, helping to solve the financing difficulties of new energy vehicle owners and supporting the dual carbon strategy. As of the end of September 2023, we have assisted clients in obtaining preferential loans totaling over 1.17 billion yuan.
It is worth mentioning that Lujin Holdings is actively exploring new service models and creating a "finance+rural multidimensional revitalization model". It has successfully implemented projects such as "finance+industry", "finance+women", "finance+culture", and "finance+dual carbon", which have effectively driven local residents to increase production and income. This model not only provides new ideas for the development of small and micro economies, but also shows Lufax's active exploration and contributions in rural revitalization and green finance.
The combination of finance and technology has become the inherent advantage and greatest confidence of Lujin Holdings in practicing inclusive finance. The long-term adherence to the people-oriented concept of finance is the value commitment of Lujin Holdings to serving high-quality development. Every step of Lujin's holding of inclusive finance reflects the original intention and mission of serving national strategies, safeguarding a better life, and practicing high-quality development.
Lujinsuo Holdings bears the responsibility and mission of inclusive finance, while also bringing greater development opportunities and space for itself. While actively exploring new development models and paths, it continuously promotes financial innovation and reform to meet new needs and expectations of economic development, and continues to provide more convenient and efficient financial services for small and micro enterprises, contributing to the development of a financial powerhouse.