Kazakhstan-Based Lending Company LF TECH to Resume Lending Offer via P2P Mintos Lending Platform
End of 2018, LF TECH had launched the Mintos to provide short-term consumer loans issued in Kazakhstan.
After the initial launch, the company suspended operations so that it could adopt its new strategy and restructure the business for increased scalability opportunities. LF TECH has confirmed that it has resumed its activity on Mintos. It will provide short-term consumer loans “as an investment opportunity for investors”.
As noted in an update from Mintos, LF TECH has been providing services in Kazakhstan, which is their home market, as well as markets in Russia and the Philippines for several years. The company mainly offers consumer credit products.
On the Mintos platform, the firm offers short-term loans that are issued by its brand Click on Dengi. In the foreseeable future, the company intends to offer car loans issued by its brand Avto Zalog.
The company serves approximately 250,000 customers based in Kazakhstan. The typical client is “a man, married, aged 30 to 40, working at a production site and needing a loan for his daily needs”.
The company shares that “the reason their customers choose their service is because of the variety of choices in which to apply for the loan – online through the company’s website or mobile app, or offline through a branch. , or what is known locally as a loan machine.
If the request is accepted, the customer can also “receive the loan in the same way the request was made (online or offline),” the company explains.
As stated in a Mintos blog post:
“Loan machines are like ATMs for loans and these machines are placed in several major cities of Kazakhstan. Also, the company shares that its customers have positively assessed its loyalty system and the quality of their service, thanks to the daily analysis of needs and behaviors, available to the customers themselves.
LF TECH was able to “overcome the challenges the company faced during the pandemic thanks to a cash buffer created at the start of the business, which is still maintained,” the announcement revealed while confirming that the company has reviewed its policies and “adapted them if necessary. ”
The company “shares that it knew that many people in Kazakhstan had either lost their jobs, had been placed on leave or suffered a cut in wages during the pandemic.” They ultimately “sought to take out loans, which is why LF TECH revised its risk rating to avoid issuing loans to clients with a high risk of default,” the announcement said.
(Note: For more information on LF TECH loans on Mintos, see here.)
As mentioned in the update, LF TECH implements industry standards for the credit scoring of its customers, which consists of “passing the mandatory biometric authentication (biometrics) procedure for all online applications, that the company has implemented at the legislative level since May 2021. ”
Before biometrics, the verification process was done via a video call between the verifier and the physical customer to confirm the identity. The essence of biometrics is that “when submitting an online application, the customer must necessarily undergo a certain verification procedure related to facial recognition as well as an online identity card or passport”, explained the company.