FinVolution Group Reports Strong Growth and Global Expansion in 2024

Rhea-AI Summary

FinVolution Group (NYSE: FINV) reported strong financial results for 2024, with annual revenue reaching US$1.8 billion (up 4.1% YoY) and net profit of US$327.1 million. Transaction volume increased 6.1% to US$28.2 billion, with outstanding loan balance at US$9.8 billion.

The company's international business showed significant growth, contributing 21.4% of total Q4 revenue. International operations acquired 2.2 million new borrowers (61% YoY increase), with transaction volume exceeding US$1.4 billion and loan balance growing 31% to US$232.9 million.

FinVolution secured key financial licenses in Pakistan, Indonesia, and the Philippines, while strengthening partnerships and expanding BNPL services. The company allocated US$160.4 million to shareholder returns in 2024, representing 49.1% of annual net profit.

The company enhanced its AI capabilities with the launch of proprietary LLM 'Rice Seeds' and the Zeta platform, improving operational efficiency across customer acquisition, risk management, and engagement.

Positive

• Revenue growth of 4.1% YoY to US$1.8B
• Transaction volume increased 6.1% to US$28.2B
• Strong international expansion with 61% YoY growth in new borrowers
• Significant shareholder returns of US$160.4M (49.1% of net profit)
• Secured new financial licenses in Pakistan, Indonesia, and Philippines
• AI implementation improved operational efficiency and reduced costs

Negative

• Net profit remained flat at US$327.1M despite revenue growth
• International business still only contributes 21.4% of total revenue
• Significant dependence on Chinese market for primary revenue

Insights

Financial Analyst

FinVolution's annual results reveal modest but steady growth with revenue increasing 4.1% to $1.8 billion and net profit holding at $327.1 million. While these figures don't represent explosive growth, they demonstrate resilience in maintaining profitability amid expansion efforts. The company's capital allocation strategy is particularly noteworthy, with $160.4 million distributed to shareholders, representing 49.1% of net profit – an uncommonly high payout ratio for the fintech sector.

The international expansion metrics are the true highlight, with overseas operations now contributing 21.4% of Q4 revenue. The 61% increase in international borrowers and 31% growth in international loan balance suggest this segment is growing significantly faster than the mature Chinese operations. The acquisition of regulatory licenses in Pakistan and Indonesia positions FinVolution strategically for continued geographic diversification.

The company's transition to higher-quality borrowers in Indonesia appears to be paying off, with H2 transaction volume growing 11% compared to H1. This quality-over-volume approach typically yields better long-term economics through reduced default rates. The expanding funding network across multiple countries provides both stability and competitive advantages in loan pricing.

FinVolution's financial performance indicates a company successfully balancing growth initiatives with profitability and shareholder returns – an equilibrium many fintechs struggle to achieve. The international growth trajectory, combined with substantial technology investments, supports the foundation for sustainable long-term expansion beyond its home market.

Technology Analyst

FinVolution's integration of AI across its core business processes represents a meaningful competitive advantage in the fintech space. The development and registration of their proprietary Large Language Model "Rice Seeds" demonstrates a commitment to building technology assets rather than merely implementing third-party solutions. This approach enables customization specifically for credit assessment workflows, potentially creating differentiation in risk management capabilities.

The company has established a comprehensive AI ecosystem with their E-LADF development platform and new Zeta application platform supporting over 1,000 AI applications. The reported efficiency metrics are particularly impressive: 60% reduction in marketing production costs, 99% fraud detection accuracy, and 20x improvements in customer support efficiency. These gains directly impact the bottom line by reducing operational expenses while improving customer acquisition and retention.

FinVolution's technology strategy appears well-aligned with its international expansion goals. The AI-driven credit assessment capabilities are especially valuable when entering new markets where traditional credit data may be By applying alternative data analysis through proprietary AI models, the company can more effectively evaluate creditworthiness in underbanked populations – a critical capability for their target markets in Southeast Asia.

The integration of BNPL services directly into e-commerce platforms demonstrates FinVolution's ability to embed its financial products into existing consumer ecosystems. This approach reduces customer acquisition costs while creating multiple touchpoints with users, supporting both retention and cross-selling opportunities. The holistic application of AI across customer acquisition, risk management, and engagement creates reinforcing advantages that should compound over time.

SHANGHAI, March 18, 2025 /PRNewswire/ -- FinVolution Group (NYSE: FINV), a leading fintech company, today announced its unaudited financial results for 2024, highlighting continued global expansion, strategic collaborations, and advancements in AI-driven credit technology.

FinVolution reported annual revenue of US$1.8 billion, a 4.1% year-over-year increase, with net profit remaining stable at US$327.1 million. Transaction volume reached US$28.2 billion, up 6.1%, while outstanding loan balance rose to US$9.8 billion, also a 6.1% increase.

FinVolution Group's CEO, Tiezheng Li commented, "We successfully leveraged our strengths in technology, customer acquisition, and retention to deliver solid results despite a challenging environment in 2024. These achievements strengthen our confidence for 2025 and beyond—becoming the leading fintech player across the Pan-Asian region."

FinVolution Group's CFO, Jiayuan Xu, stated: "Over the past year, FinVolution achieved solid growth and demonstrated healthy financial performance. In 2024, we allocated US$160.4 million to shareholder returns, accounting for approximately 49.1% of our annual net profit. Since 2018, we have returned a total of approximately US$765 million to our shareholders. This underscores our steadfast commitment to enhancing shareholder value and our strong confidence in the company's business fundamentals and cash flow outlook."

Accelerating International Growth

FinVolution's international business continued its strong momentum, contributing 21.4% of total revenue in Q4 2024. The company acquired 2.2 million new borrowers outside of its Chinese market in 2024, a 61% year-over-year increase, with international transaction volume surpassed US$1.4 billion, while the outstanding loan balance grew 31% to US$232.9 million.

To support its global expansion, FinVolution secured key financial licenses across multiple markets, including:

• A Non-Banking Financial Company (NBFC) license from the Securities and Exchange Commission of Pakistan (SECP).
• Acquired a large majority stake in an Indonesian multi-finance company, enabling FinVolution to diversify its products into offline consumption loans with different scenarios such as mobile and electronic devices.
• Accreditation as a Special Accessing Entity (SAE) by the Credit Information Corporation (CIC) of the Philippines.

Strengthening Partnerships and Expanding Financial Inclusion

Following a successful transition to higher-quality borrowers in FinVolution's largest overseas market, Indonesia, transaction volume in the second half of 2024 grew to US$506.9 million, up 11% compared to the first half of 2024. The company also strengthened its funding network, adding Super Bank, bringing its total active funding partners to 10 in Indonesia.

In the Philippines, FinVolution became the first company to introduce institutional funding through its loan facilitation model, collaborating with 5 leading institutional funding partners. The company also expanded its Buy Now, Pay Later (BNPL) services, embedding fintech solutions directly into major e-commerce platforms to enhance financial access for consumers.

Looking ahead, FinVolution aims to generate 50% of its revenue from international markets by 2030 under its "Local Excellence, Global Outlook" strategy. Building on its success in Indonesia and the Philippines, the company is accelerating expansion into Pakistan and other countries in 2025.

Driving Innovation with AI-Powered Credit Technology

FinVolution continues to push the boundaries of AI-driven credit technology, leveraging Large Language Models (LLMs) to optimize every stage of the credit lifecycle. In 2024, the company officially registered its proprietary LLM, "Rice Seeds", designed to enhance credit risk assessment, fraud detection, and customer interactions.

The company also launched Zeta, an AI-powered application platform, complementing its E-LADF AI development platform introduced in 2023. These two platforms have enabled an intelligent ecosystem covering customer acquisition, risk control, and user engagement, supporting over 1,000 AI applications that have significantly improved operational efficiency and user experience:

• Customer Acquisition: AI-driven advertising technology reduced marketing material production costs by 60%.
• Risk Management: Proprietary visual AI models improved fraud detection accuracy to 99%, leveraging background template recognition and ID verification algorithms.
• Customer Engagement: AI-powered behavioral and conversational KYC tagging optimized customer service strategies, boosting overall user conversion rates by 9%.
• Customer Support: AI-generated call summaries and user sentiment analysis increased operational efficiency by 20 times.

As FinVolution continues to scale its global footprint, the company remains committed to leveraging cutting-edge AI and fintech solutions to drive financial inclusion and sustainable growth.

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SOURCE FinVolution Group

FAQ

What were FinVolution Group's (FINV) key financial metrics for 2024?

FINV reported revenue of US$1.8B (+4.1% YoY), net profit of US$327.1M, transaction volume of US$28.2B (+6.1%), and outstanding loan balance of US$9.8B (+6.1%).

How much did FINV return to shareholders in 2024?

FINV allocated US$160.4M to shareholder returns in 2024, representing 49.1% of annual net profit.

What was FINV's international business performance in 2024?

International business contributed 21.4% of Q4 revenue, with 2.2M new borrowers (+61% YoY), US$1.4B transaction volume, and US$232.9M loan balance (+31%).

What are FINV's international expansion targets for 2030?

FinVolution aims to generate 50% of its revenue from international markets by 2030 under its 'Local Excellence, Global Outlook' strategy.

How did FINV's AI technology improve operations in 2024?

AI reduced marketing costs by 60%, improved fraud detection to 99% accuracy, increased user conversion by 9%, and boosted customer service efficiency by 20x.