WeFund Lending eyes to grow Luvit Card user base to 500,000

WEFUND Lending Corp., the operator of the JuanHand online lending application, targets to reach about half a million users for its Luvit Card within the first year of its launch.

“Our aim is to give Filipinos the flexibility to live the life they deserve through a flexible pay network,” WeFund Lending Chief Executive Officer Francisco Roberto Mauricio said in a speech at the launch of the Luvit Card late on Wednesday.

“What Luvit Card does is to help you take advantage of financial flexibility. It’s an access card designed for a modern way of living and to adjust to your lifestyle.”

He said they hope to reach 500,000 card users within a year from launch and book profits from the card within three years as they continue to invest in branding, research and development, and technology and user experience enhancements.

The card, which is mainly geared towards young professionals who are just starting their careers, is supported by the proprietary artificial intelligence (AI) of FinVolution Group, which is also used by its online lending app JuanHand.

Both Luvit Card and JuanHand are operated by WeFund Lending, which is a subsidiary of Shanghai-based and New York Stock Exchange-listed Finvolution Group.

“AI is in our DNA. Among the fintech cash lenders or even access cards, we should have the lowest default rate because of how smart our AI is,” Mr. Mauricio said.

He added that they expect their default rate to stay in single digits.

While JuanHand offers cash loans, Luvit Card is available as a virtual and physical card and can be used for traveling.

Users get a 0% interest rate for up to 40 days from the application with no hidden or annual fees, and dynamic pricing.

It also offers spending limits ranging from P6,000 to P200,000 with installment payment terms from three to six months and interest rates between 3% to 8%.

“For Luvit Card, it’s different in terms of the data points because the profile is different. We have to assess to implement dynamic pricing. The more of a good borrower you are, the better your credit terms are. If you’re a repeat borrower and you pay on time, eventually, your interest rate will be lower, your loan amount will be higher, and your tenor will be longer,” Mr. Mauricio said.

It is currently supported by Mastercard, but the official said they are open to partnering with other payment technology firms such as Visa.

Asia United Bank Corp. is the Bank Identification Number sponsor for Luvit Card, while MatchMove is the technology partner. — A.M.C. Sy