FinVolution Group announces share repurchase program of up to US$60 million

By Edil Corneille

FinVolution Group, a FinTech platform in China, announced that effective August 24, 2020, the board of directors of the company approved a new share repurchase program whereby the company is authorized to repurchase its own Class A ordinary shares in the form of American depositary shares (ADS) with an aggregate value of up to US$60 million till December 31, 2021.

Feng Zhang, Chief Executive Officer of FinVolution stated, “FinVolution remains firmly committed to shareholder value, and since the initial launch in 2018 of our original share repurchase program of up to US$120 million, we have cumulatively deployed approximately US$111 million to purchase the Company’s ADS as of August 24, 2020. This New Program serves as an expansion of our share buyback efforts, bringing the total cumulative amount of capital for share repurchase up to US$180 million. It further reflects our confidence in the Company’s business operations and outlook, as well as our firm commitment to generating long-term value for our shareholders.”

FinVolution Group connects underserved individual borrowers with financial institutions. Established in 2007, the company has developed technologies and is said to have accumulated in-depth experience in the core areas of credit risk assessment, fraud detection, big data, and artificial intelligence, thereby playing a significant role in China’s online consumer finance industry. The company’s platform, empowered by proprietary technologies, features a highly automated loan transaction process, which enables a superior user experience. As of June 30, 2020, the company had over 110.4 million cumulative registered users.

Recently in June, FinVolution announced that PPDAI App, its FinTech application, had received the APP Security Certification and the APP Information Security Certification with level 3 rating, which is said to be the highest rating level in security evaluation standard. The company received the rating from the China National Computer Virus Emergency Response Center (CVERC). In December 2019, the company announced the approval of its subsidiary’s application named Adakami in Indonesia, for the license of a Technology and Information Based Financial Lending Institution.