Zaim Credit Systems (LON:ZAIM ) told investors that it is continuing to exceed expectations with November 2020 delivering “yet another record month” as its online business grew.
The Russian focused fintech group said its business saw £0.854m worth of online funds last month, representing an increase of 62% since September 2020 and 490% since June 2020.
Meanwhile, Zaim saw £0.303m funded offline during November, representing a decrease of 17% since September 2020 as more resource and growth directed into the online business.
The group also highlighted that it has continued its strong cash collection from existing loan portfolios used to fund the online growth whilst maintaining positive operating cash flows.
‘Early indications are that default rates remain stable, with improvements in the credit scoring system offsetting any usual increase in expected defaults as a result of increasing volumes of new clients and which by itself is a byproduct of rapid growth,’ it noted.
“I am delighted to report that we are continuing to exceed expectations and November delivered yet another record month for the online business which grew 62% in just two months and an impressive 490% in just 5 months,” said Siro Cicconi, Zaim's CEO.
He added, “We expect this positive momentum to continue into 2021 and look forward to updating the market on the trading of the business as part of the year-end update."
Shares in Zaim Credit Systems have traded strongly over the past three months to open up 5.35% higher this morning at 2.75p following the announcement.
Reasons to Follow ZAIM Credit Systems
Zaim Credit Systems plc is the holding company of a Russian based financial services company Zaim Express. Zaim’s core product is providing microloans to Russian consumers.
Improving Financials
In a post period end trading update from its subsidiary, Zaim-Express, Zaim confirmed continued record growth with volumes of total lending approaching pre lockdown levels.
Zaim is accelerating its online transition with related costs savings through store closures have helped offset the impact of the COVID-19 pandemic in its half-year results for H120.
COVID-19 related restrictions were lifted in Moscow at the beginning of June with subsequent further lifting of restrictions occurring later in July. As a result, the business has since seen positive momentum and observed ‘a continued increase in demand.’
Positive Outlook
In 4Q20 ZAIM expects to see a continuation of the business growth driven mainly by the online segment combined with slight improvements in the default rates as a result of continued advancements to the credit scoring process.
“We are confident that the group is going to benefit from this strategy regardless of the future development of the Covid-19 pandemic situation, as the online segment of the microfinance market is growing at an impressive rate and we have a competitive advantage via our online platform and bespoke IT system,” Cicconi told investors in September.
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