Analysis of scope for cashflow-based lending in AliFinance
Alifinance contracted IPC to assess the lending technology it used to finance clients of Alibaba. Based on this analysis and using IPC’s lending technology as a benchmark, IPC was invited to make suggestions about how to improve Alifinance’s model by including elements of a cashflow-based technology. The project was structured in three phases: (1) Introduction to IPC technology followed by financial analysis of selected clients using the IPC technology; (2) analysis of client data availability in Alifinance’s resources and assessment of the decision-making parameters applied in the existing model; (3) modifying Alifinance’s lending model.
- Conducting three-day classroom training for selected staff about cashflow-based financial analysis
- On-the-job training through the analysis of 12 Alifinance clients, including credit decision-making
- Assessing the suitability of Alifinance’s model, Alifinance’s client data availability, and Alifinance’s decision-making parameters, using IPC’s standard as a benchmark for sound and solid credit risk management
- Making suggestions about how to improve Alifinance’s lending model
- Presenting the results of the project and IPC’s suggestions to project stakeholders