On November 20, AI-driven digital technology service provider Yiren Digital (NYSE: YRD) released its unaudited financial report for the third quarter of 2024. Driven by AI strategy, Yiren Digital continues to maintain healthy growth, achieving steady operation and high-quality development.

The chairman of the board of directors and CEO of Yiren Digital, Tang Ning, stated: Through the drive of AI strategy and sustained stable operations, Yiren Digital maintains strong growth momentum. We continue to promote innovation and progress in business and products, hold a positive and optimistic view of the company's prospects, and will continue to make technological innovation and excellent service the foundation of our development, focusing on AI strategic direction to provide more efficient solutions for a broader range of industries, institutions, and user groups. By deepening the application of AI technology, promoting technological innovation, and ensuring sustained business growth and enhanced market competitiveness.

The effectiveness of the AI strategy is significant, promoting the healthy development of the company's business.

Yiren Digital is steadily advancing the development of its AI strategy. From product innovation, technological advancement to application upgrades, the company has been orderly expanding into a wider digital intelligent technology service market, with steady development in the third quarter, and business scale maintaining a positive trend.

Financial consulting

In financial consulting, for the third quarter, the transaction amount facilitated was 13.4 billion yuan, an increase of 36% year-on-year, with a loan balance of 22.8 billion yuan, up 51% year-on-year.

In terms of users, to achieve high-quality user growth and enhance user activity, optimizing customer acquisition strategy, and increasing the proportion of high-quality repeat customers, through innovative strategies and optimized service experiences, enhancing user stickiness and expanding market influence. In the third quarter, Yiren Digital actively expanded multi-scenario traffic resources, achieving precise customer acquisition in different scenarios through diversified channel coverage. This is mainly attributed to our in-depth cooperation with leading media resources, accurately targeting high-value audiences. By leveraging advanced RTA technology, high-quality customers are screened and acquired in real-time, achieving a year-on-year growth of 52% in monthly active users, reaching 4.46 million.

In terms of risk control, thanks to the integration and penetration of digital risk prevention, user operation, and service experience throughout the entire process, the overdue rates for 1-30 days, 31-60 days, and 61-90 days in the third quarter were 1.8%, 1.2%, and 1.2% respectively, with the initial overdue rate dropping to 0.59%. The effectiveness of risk control has significantly achieved a historical low, optimizing asset quality. In the third quarter, through AI-enabled quality inspection in business, 20 models for post-loan management quality inspection were implemented, and 8 models for customer service quality inspection were developed, with an accuracy rate of over 96% in post-loan management models.

In the area of services for small and micro businesses, yiren digital strengthened its support for small and micro enterprises in the third quarter, continuously expanding its service range to more small and micro business scenarios and enhancing its product and service capabilities across multiple scenarios. During the quarter, 0.085 million small merchant services were provided, reflecting a 10% increase quarter-on-quarter, facilitating a transaction amount of 1.8 billion yuan, which is a 15% quarter-on-quarter growth.

Insurance brokerage

In the insurance brokerage business, Hexiang Insurance Brokerage has promoted the positive trend in the insurance business by continuously optimizing its business structure. In the third quarter, premiums reached 1.35 billion yuan, with the number of clients insured in the same quarter at 0.082 million.

In the third quarter, Hexiang Insurance Brokerage optimized its customer acquisition methods by expanding its online self-media model and utilizing AI digital tools to achieve automated generation of video content. This not only significantly improved the efficiency of content production but also effectively reduced production costs, achieving cost reduction and efficiency increase. Customer acquisition through new media will bring new growth momentum to the business.

Quality life

In the quality life business, leveraging the innovative power of AI, products and services were improved to enhance user experiences in enjoying a superior quality of life. In the third quarter, the quality of the trading crowd for selected member rights products improved, with the number of customers trading selected member rights reaching 3.34 million, achieving a GMV of 0.51 billion yuan.

Product and technology innovations have received widespread recognition, promoting cooperation in the AI industry and business development.

Through continuous product and technology innovations, improvement in service levels, and expansion of cooperative scope, business development has been successfully promoted, thus gaining widespread recognition from all sectors of society for our products, technologies, and cooperative models in ai.

At the government cooperation level, yiren digital has signed a cooperation agreement with the guangxi beihai city government to jointly build a fintech platform. With its solid technical strength and profound understanding of the industry, it contributes to the sustainable development of the industry and builds cooperation for guangxi beihai city’s industry.

In terms of business innovation, yiren digital's 'Ling Shu Intelligent Marketing Platform' has received the 'AI industry innovation scenario application case' certification after rigorous evaluation by the Industrial Culture Development Center of the Ministry of Industry and Information Technology's Digital Technology Center. The 'Ling Shu' intelligent marketing platform not only meets the extensive marketing needs of different business lines but also provides a solid foundation for personalized marketing.

In terms of technological innovation, at the 2024 global digital economy conference's ai thematic forum, yiren digital's 'Private Large Model: Intelligent Customer Service' project, co-created with ecological partner Bai Xiong AI, was rated as a '2024 typical case of ai large model scenario applications', marking substantial progress in the construction of the ai ecological system of yiren digital.

In the combination of industry, academia, and research, yiren digital was invited to attend the 'AI Large Model Application Scenarios' industry issue expert seminar hosted by the Enterprise Innovation Service Center of the China Association for Science and Technology, and co-organized by the beijing centergate technologies and the China Communications Industry Association's Data Center Committee, engaging in in-depth discussions with industry experts on the integration and innovation of ai large models in practical applications.

Driven by technology, led by responsibility, and empowered by talent, building enterprise value and social responsibility in the era of ai.

At the international cooperation level, yiren digital made an appearance at the 24th China International Investment and Trade Fair, showcasing its 'ai + diversified scenarios' strategic layout. It promotes the innovative upgrades of business and products, builds new quality productivity for more field partners, and creates greater value for customers.

At the esg level, yiren digital was awarded '2024 Outstanding Enterprise' at the 2024 Global Zhejiang Business esg Conference, with its case selected as one of the '2024 Global Zhejiang Business esg Classic Cases 100', and this case was also published in the 'Zhejiang Business' esg anthology.

In terms of csi information security index, yiren digital participated in the unveiling ceremony and special seminar of the "Prosecutor's Protection of Enterprises" North Mutual Finance Association Workstation, viewing "protecting user information security" as its responsibility, and is committed to integrating cutting-edge technology into safeguarding user information security work, protecting the information security of the digitization of financial services.

In terms of consumer protection, yiren digital continues to severely crack down on black and gray industries, actively cooperating with the police to solve illegal cases. For acts such as information forgery by illegal personnel, the police have carried out administrative penalties according to the law, effectively maintaining the stability of the financial market and safeguarding consumers' legitimate rights and interests.

In terms of team building, yiren digital's exceptional talent introduction plan has shown significant results, attracting many outstanding talents to join the management team this quarter, focusing on professionals in AI research and development, data, models, etc., enhancing the company's smart capabilities.