Leader in a promising market with a low level of consolidation

Expert RA rating agency forecasts a 30% growth in Russian microfinance in 2021, which will be influenced by the following factors:

  • High demand for loans.

  • Growing number of applications by former customers of lending organizations and banks (for individuals and private entrepreneurs, bank channels are actually closed or less preferable).

  • Introduction of new technologies and development of remote services, which significantly accelerated in 2020.

Arifmetika ranks high in the market. It is regularly included in the TOP-10 of the main industry rankings, which are published by the National Rating Agency (NRA) and Expert RA, and it is ranked among TOP-3 in terms of some indicators.

The tendencies towards further market consolidation have intensified. Due to the departure of small players, the share of large market operators is growing. There may be some mergers and acquisitions shortly.

New technologies and innovations that allow the company to quickly introduce new products and scale them to any number of regions

The company is based on the use of the following technologies:

  • «Big Data» — rich experience in consumer behavior analysis, developed customer segmentation system with tailored product line.

  • «Blockchain» — storage and protection of data of customers who have used the services of the company.

  • «Scoring» — in-house unique system for assessing borrowers, representing the construction of mathematical models using machine learning methods based on the analysis of a large number of internal and external data sources.

  • «Artificial intelligence» — a robot operator for processing incoming customer requests and robotic debt collection.

Advanced risk management approaches which enable the company to maintain one of the lowest cost of risk on the market

Risk management procedures are automated and integrated into the company's business processes allowing the calculation of the indicators of credit and operational risks, liquidity risk and other risks on a daily basis.

One of the priority tasks in risk management is maintaining the high quality and profitability of the portfolio. The Company developed a unique scoring system with construction of multifactor mathematical models using machine learning techniques based on the analysis of over 2,000 borrower metrics obtained from internal and external sources.

The Company’s well developed IT infrastructure allows for regular validation of scoring models and, if required, supplementing them to increase the scoring efficiency. As a result, the company has one of the lowest cost of risk on the market (on average, 7-10%).

The Company adheres to a conservative approach in risk management, setting risk limits that meet the requirements of sustainability and stability.


Well-defined growth strategy based on a hybrid business model

The long-term goal of the company is to take a leading position in the Russian MFO market, to become a leader not only in terms of the volume of issued loans, but also in terms of technology and innovation.

The company will increase its business volumes by introducing new products, expanding its client base and geography of providing services. Arifmetika plans to increase the share of remote services, specifically, online loans, which will allow the company to more actively expand into foreign markets. According to the results of December 2021, the share of online loans in the total volume of issuance reached 14%.

The company will develop both through organic growth and through M&A transactions. The Russian microfinance market is poorly consolidated, therefore it provides opportunities for the consolidation of the leading players.

Arifmetika is based on a hybrid business model, that is, it will develop both a network of loan supply points and online loans. This will allow it to attract clients from regions and small towns where people prefer to receive loans in cash, as well as new clients for whom remote services are more familiar and convenient.

ENG