From Sequoia to Democratizing Consumer Finance For the Underserved - with Omni Prime CEO Dan Hu
Dan Hu has seen it all. From leading multiple successful investments for Sequoia China during the 2010-2014 tech boom to helping found ZhenFund (China's top seed fund), Dan has always had an eye for finding the next big thing. That penchant for uncovering opportunities has led him to found Omni Prime, a mobile consumer finance service company that provides payday loans to low income entrants with a complex, app based risk evaluation system.
In China, hundreds of millions of consumers still do not have formal credit ratings. In particular, students, farmers, and blue collar workers lack credit scores, not because they are subprime debtors, but rather because they haven't previously borrowed money or needed to make any repayments. That makes it impossible for traditional financial institutions to make assessments, and unlocks an interesting opportunity for internet companies that are more risk taking, that have lower operating costs and an ability to iterate more quickly on risk management.
On today's podcast (via skype call), we explore this underserved segment to better understand the market opportunity, competitive dynamics, and commercial applications. Why are blue collars underserved by credit cards? How can 3rd party offerings compete against the consumer finance solutions provided by eCommerce giants (Alibaba and JD)? How do consumer finance players find the right entry point in a fragmented market where 80% of commerce still happens offline. What are the primary consumer scores and how do they differentiate (e.g. Omni Prime's Octopus Credit vs. Alibaba's Sesame Credit)? How will this market evolve in the near and medium term?
Link to write-up here: https://www.theharbingerchina.com/blog/from-sequoia-to-democratizing-consumer-finance-for-the-underserved-with
In China, hundreds of millions of consumers still do not have formal credit ratings. In particular, students, farmers, and blue collar workers lack credit scores, not because they are subprime debtors, but rather because they haven't previously borrowed money or needed to make any repayments. That makes it impossible for traditional financial institutions to make assessments, and unlocks an interesting opportunity for internet companies that are more risk taking, that have lower operating costs and an ability to iterate more quickly on risk management.
On today's podcast (via skype call), we explore this underserved segment to better understand the market opportunity, competitive dynamics, and commercial applications. Why are blue collars underserved by credit cards? How can 3rd party offerings compete against the consumer finance solutions provided by eCommerce giants (Alibaba and JD)? How do consumer finance players find the right entry point in a fragmented market where 80% of commerce still happens offline. What are the primary consumer scores and how do they differentiate (e.g. Omni Prime's Octopus Credit vs. Alibaba's Sesame Credit)? How will this market evolve in the near and medium term?
Link to write-up here: https://www.theharbingerchina.com/blog/from-sequoia-to-democratizing-consumer-finance-for-the-underserved-with
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