Zaim Credit Systems PLC (LON:ZAIM) has posted further strong growth of the business which it said continues to perform well, having traded profitably in the first quarter of the current financial year.
Loans issued were up by 34% to £5.1mln compared to the fourth quarter in 2020, which the Russian focused fintech group said was another record high, while loans issued online reached £4.3mln, growing by 49%.
Online activity now comprises 84% of the total business and continues to be the main engine for growth, Zaim said.
It added that its focus is to maximise growth and customer numbers over profitability and gain as much market share as possible over the near term.
The weighted average default rate increased slightly to 17.7% in the quarter due to the increase in the number of first-time customers which inherently have statistically higher probability of defaults.
This increase in default levels is in line with the management expectations and is a result of the strategy to maximise growth, Zaim said.
In line with strategy to maximise growth and number of customers, the group secured an additional R50mln (£480,000) of funding from existing debt providers in April, as previously announced.
“This online strategy has driven outstanding growth in the last three quarters and making the business sustainably profitable due to a significantly lower fixed cost base and greater scalability,” said chief executive Siro Cicconi in a release.
“Our continued investment in our proprietary platform and process, including the development of a soon to be launched mobile application through which we hope to be a significant additional driver of growth in the business, makes us confident that the online part of the business is now very well positioned to capture further market share.”
“The first quarter is traditionally the weakest and worst-performing quarter of the year due to seasonal, holidays and traditional factors, so I am delighted the business continued its strong growth which is underpinned by strong cash generation from the existing portfolio. This sets the scene for a positive rest of the year to come,” Cicconi continued.
Shares rose 3% to 4.44p on Tuesday morning.