Q4 2019 Earnings Call
Hello, Ladies and gentlemen, thank you for study by the welcome for the fourth.
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Thank you operator, Hello, everyone and welcome to listings fourth quarter and full year 20, <unk> earnings Conference call. The company's results were issued earlier today and our posted online joining me today on the call Mr. Jay show, a founder Chairman and Chief Executive Officer, Mr., Craig Our Chief Financial Officer Mr.
Our chief risk Officer, Mr. Stanley's, all our senior financial director and other members of our team, but today's agenda Mr. Shao will provide an overview of our recent performance and highlights Mrs and well discuss our financial results and Mr. Lee will discuss our credit performance before we go.
In turn you I refer you to our Safe Harbor statement in the earnings press release, which applies to this call is we will make forward looking statements. Also this call includes discussions a certain non-GAAP financial measures.
Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.
Finally, please note that unless otherwise stated all figures mentioned during this conference call I, Let me I now turn the call over to our CEO Mr. show, whom I will translate for.
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Yes.
Hello, everyone. Thanks to our efforts in the past quarters, our new construction platform strategy is now entering a phase of increasing growth and were able to record another quarter of strong growth.
Passing or raise guidance in the fourth quarter, but.
For the full year at 29 chain lashings loan origination volume increased to over 100 billion, reaching 126 billion, an increase of 90.6% year on year meeting our full year guidance. Our revenue surpassed 10 billion, reaching 10.6 billion an increase of 39.6% year on year gross profit was fine.
Billion, an increase of 65.8% and net income reached 2.3 billion, an increase or 16% in the fourth quarter. We originate a 42.8 billion in loans, an increase of 104% year on year, where revenues of 3.1 billion an increase of 50.4% gross profits.
1.5 billion, an increase of 59.7% and net income of 518 million.
The other 2019 bushings outstanding loan balances reached 60.6 billion, an increase of 87% and our asset quality remains stable.
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Our continued investment and deployment, our new construction strategy and 29 team we increased our spending in R&D.
The total investment in R&D for the year reached 416 million, an increase of 29.9% and for the full year.
Marketing and sales the increase to 1.5 billion an increase of 161%.
This strategy has allowed for registered users numbers through surpassed 70 million an increase of 96.5% year on year, New active users were 2.1 million for the quarter, an increase of 244% entering two consecutive quarters of growth exceeding 200%.
In our user numbers will drive future transaction schedule and the continued growth of our revenues.
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In 2019, lashings, new consumption platform strategies, three core businesses develop rapidly essentially live online E. Commerce platforms SK use grew to over 2 million and our full year GMB reached 8.1 billion, an increase of 38.7% much stronger didn't want.
The 19th industry growth rate of 8% offline Consumptions scenarios also generated 20.6 billion in transactions as more and more supermarkets convenient stores leisure restaurants, and other retailers join our platform membership for English cards, and apps and working with leading online offline players expand.
So to include religious with numerous brands to cover leisure apparel dining hospitality and more at the end of the fourth quarter Noshing is paying membership products has already been utilized nearly 1.8 million times membership point sample went up of online and offline membership points systems, serving over 6.1 million cuts.
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Thanks to our strong technological base and highly stable and compliant operations and strategy Bushing has no trust of many partners today learning is cooperating with large scale banks insurance companies consumer finance companies and has established partnerships with over 100 financial companies.
In this period of rapid growth were also committed to our social responsibility at the beginning of the year rushing donate a 13 million, let me be to be used in the transaction upfront medical staff and occurring ongoing effort against the current over 19 Pandemics.
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As our own on operations has been affected by the ongoing pandemic Mushing has delayed the normal assumption of operations, there and our long servicing has been affected as a result, we immediately adjusted our customer acquisition strategy and asset management strategy in order to ensure stable asset quality today. The company has taken many.
Steps and actions in our operations are now and 90% of normal in the first quarter, we expect loan originations to exceed 32 billion an increase of over 60% as Tacoma 19 conditions in China are gradually contain and as the economy recovers and consumption normalizes. We believe that we can returns were wrap.
Half of growth, we therefore field that currently there is no need yet to adjust our full year guidance of 170 to 180 billion and we will make a determine efforts to achieve this challenging go.
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Currently consumption is Chinese economy, stabilizing agent and in the current and new consumption and new infrastructure will become the Chinese economies twin engines. The Central Man has also clearly expressed their restarting the economy and driving internal consumption will be integrated to drive new consumption and consumption upgrade.
Under the new favorable an encouraging government policies lashings, new consumption platform strategy will gain greater room and traction continuing to serve chinas real economy, driving China's growth and consumption, providing benefits to millions in chinas new consumption generation, we believe in steadfastly adhering to.
Long term value generation, serving the new consumption generation and continuing to open up both online and offline consumption scenarios as well as membership benefits and using point and financial technology to create a new consumption service ecosystem and consolidating our leadership with our customers.
Jason what you're going to sample Craig audet holidays elements into those households, Nextel invite our CFO Craig to discuss our recent financial performance.
Thank you Jay and Hello, everyone Im pleased to announce that we have once again delivered strong results.
In the interest of time I will not go over line items by line items of the financials for more detailed discussion on July 4th quarter and for year 2009 key results. Please refer to our earning press release.
Total operating revenue for the full year. Two 2019 reached 10.6 billion driven by strong grows the our financial service income.
Which reached 6.8 billing.
Leach known for that at Asia, and the service fees was 5.6 billion.
Adjusted net income was too high for bidding, reflecting our continuing strong grows and the performance.
Fully diluted adjusted net income for Ats was 12.95.
We continue to see the future potential of our business model in the performance of the customer cohort, whom we acquired in the first quarter of 2015 with balances now RMB 13639, and adult 30 day delinquency rate is approximately 1.1% with our quarterly Act.
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At 35.2%.
Our operating leverage.
Operating expense as a percentage of average loan balances was 5.2% for 2019, now advertising marketing, otherwise marketing and advertising DNA and R&D was 1.22, 0.2, 0.9% and the 0.9% of average loan balances loan balance respective.
We currently have 73.3 million registered users and a 19.4, many customers with quite a lot.
From 10.5, many in the December 13th December 31, 2018.
We acquired at nearly 2.1 million new active customers in the fourth quarter overall, our average credit limit was RMB 9700, why our average Tanner is now 12 month.
Our weighted average HCR was 26.8.
In the term of our funding for the quarter no funding for new loan originations came from our usually type platform and all of our funding for new loan origination came from our execution funding partners.
The ongoing cop copied 19 outbreak as bras and continuing to bring many challenges to our business. While we are now seeing a gradually recovering.
We believe that without gradually recovery and that become economy efforts of the of our T., we may still be able to achieve our previous data guidance for the year.
We're also pleased to announce that we now expect a total automation for the first quarter two down 22, we over RMB 32 Binney.
Next Brian will discuss our credit situation wind fleet.
Thank you Greg we continued our stable credit performance in its quadrant.
In spite of training you condition in the market.
Credit quality continues to be high and that we expected levels.
We fully expect our credit that did to continue to perform well and the at the expense levels.
I want I needed product delinquency ratio remains low at one point fivex debt.
And we continue to stay strong credit woman and our lifetime charge off ratio is approximately 3%.
Due to the credit woman and there's a number of new customers as well as the ongoing copied 19 situation. We expanded the vintage charge off ratio, who our loan portfolio to increased to approximately three point pipe tend to 4.5% over the course over the next few months before improving in the third quarter.
This is a 40 reason our range of expectations and we fully expect our stable quite woman to continue in 2023 that I conclude our prepared remarks operator. Please proceed with the preference and undertaking.
Thank you so much sensors.
We will now begin the question and answer this question to ask the question. You May proceed bar. One then it's all the for now.
And then to Vietnam, we cancel your regrets human breast deposit has done.
Yes. Please ask your question Chinese if you can't and Greg.
The question in English.
Your first question comes from the line of Jockey Ju from China, then evidence your line is now open.
Okay.
Hi, Good evening management, maybe just for the interest of time I'll jump up in English.
So first question is.
About our first quarter guidance I I saw the first quarter guidance is actually stronger than Mark expected. So just a one what I'm.
Wondering if management can give us more color on the recent.
Situation regarding the borrowers and how's the.
Recovery in the recent weeks.
And Oh.
And also the continuation regarding the Irish situation.
Second question is about our take rate.
I observed that if we just use the.
Thanks agencies divided by our loan origination the take rate actually went down in Q4 are just wondering what is the reason behind.
It is because of our higher cost assumptions what is our operating cost assumptions are currently.
And the third question, it's about our upcoming accounting change. So can you shed some color about the.
Impacts of.
Probably a acceleration off.
Credit cost.
In the coming a change of itself.
Okay.
Just want to come down one minute and go to it.
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Yeah, So Jackie.
With regards to the first quarter numbers and situation well I mean, obviously, it's already the end of March. So you can say that we are probably more or less accomplish the numbers that we have given out for the first quarter. The operations right now there are recovering pretty well.
Overall, it's up coming back and a it's increasing daily as mentioned earlier, we're at 90% of our normal levels and our customer acquisition is also about back to normal and we are becoming increasingly confident now on the rest on the collections as you know that we have a major collection.
Center, a unfortunately at the epicenter the pandemic. So the staff there had to a work remotely which are unfortunately also met that they were not as effective but are there no. They are definitely catching up there is a bit of a backlog, but it's going to need some time in order to achieve that.
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Yeah, So Jackie.
The take rate or the overall profitability, even I think theres a couple important points that Craig wanted to make 'em, one our because a number of new customers who were testing there are certain reductions that occurred from their early repayment. So what they would do is that they would discover our product they will use our product.
They would like to service and then they will repay early so in turn that impacted the numbers a little bit as you know as since the third quarter and into the fourth quarter.
We had on a quarterly basis 2 million new active customers. Each time, so the new customers definitely behaved differently than the mature customers and now that they are larger proportion they have a bigger impact and of course also a their risk levels because they knew they have a maturity at our also higher.
And of course also on the overall profitability as you know we made up any long term investments a in the fourth quarter, whether it was in customer acquisition and other areas and as you know from our motto and half our motto involves growing what our customers. These are long term investments that will generate long term returns.
In the future will take additional steps to mitigate different things Ryan may talk about a little below the staff Sandia side, but certainly a one of the things we may be doing is that for the newer customers, we might give them a smaller lines. So that way that when they will pay it'll be a much more minimal amount and we think that overtime there behave.
You will return to being more normal and another thing on the new SSLP or.
The application this of course will be a industrywide answers the FCC requirement and we're currently working very hard on getting 100% clarity on it.
Once we have clarity on the exact impact will be shorter communicate that to everyone.
Our next question comes from the line of Lucy Lu from Goldman Sachs. Your line is now open.
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The next question is a follow up on that asset quality just wanted to clarify whether.
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Right assumptions.
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Fair value change line.
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I'm just wondering how do you see the pure facilitation modeling on that.
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We expect to continue.
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Yeah, So with regards to your questions on the consumption well, it's fair to say that obviously the events in the first quarter has a suppressed.
Assumption in a in China significantly effectively freezing all the offline consumption in activities and clearly this is also reflected in our Q on Q numbers, if we compare our first quarter guidance versus our fourth quarter numbers now it's also fair to say that.
Gradually the a and then make has been contain we can see for example in senza pretty much all the offline venues are coming back or have the come back already and this includes the impact during the high risk areas. If you will such as movies and otherwise they are coming back and increasingly normal as well.
And as we mentioned earlier, we're probably looking in terms of our daily operations are being back at around 90% or above now with regards to the customer acquisition, even before the ongoing pandemic, we already we're adjusting our customer acquisition.
Obviously, the acquisition of customers online presents higher risk, we have to make certain adjustments so ever since the second half of last year, we been reducing the approval rates adjusting the model, but also Canadian to make sure that we keep the customer acquisition cost stable and consistent with the numbers we've mentioned before.
Let me 200 per customer. So overall, we're looking at probably a stable situation. When it comes to the customer acquisition now in terms of our overall situation as a result, because of the actions last year and because of the customer acquisition.
We are not under pressure to acquire customers. This year. So it can be more stable and with the existing customers. We should be basically within a range with a lot of efforts of achieving our guidance our loan originations now on your third question on the asset light model well for this year I think we're looking to.
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That's a way by a one time, so basically yeah, it'll be a significantly higher in that respect the as compared to last year.
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Absolutely right I want to clarify that it's definitely not a 100 basis points as more like 50 basis points, but this is the 50 basis points on top of the already anticipated increase and the increase again the core of it would be because of the new customers. So you see some of these things in the.
Fourth quarter that rises to the new customers and this is just a matter of time and going through the system and maturing now we did see during a challenging things occurring in the industry as a whole.
Back in November so since then suddenly may adjustments or some of which are clear talk about we adjusted our model the approval ratings and conditions, whether that come down and we're doing separately.
Adjusting for longer term analysis, and more distinguishing between our new and old customers, but certainly the credit quality or it's not or the vintage charger is not increasing by a that much.
Okay.
Hi, Anthony matches.
Operator.
Thanks.
Your next question comes from the line of Sun Jane Sanjay Jain from RBC Capital. Your line is now open.
Hi, everyone can you hear me.
Yeah.
No party congratulations on good results.
Two questions.
Allow me to ask them one by one first is on asset quality and a you know just reconciling the numbers. So in the delinquency. The vintage chart I see the highest delinquency being for you and how for sand or close to guide for the third quarter 2018 vintage.
Which would.
I assume I know you're I'm always confused about.
How you reportedly delinquency and how translates into the loss rate are suppose it translates into around 7% loss rate.
On the on balance sheet, if I look at the fourth quarter provisioning divided by the average loan it works out to 21% how do you reconcile the if it is 7% overall versus the 21% on.
On the on balance sheet.
Yes.
Yes.
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Yes.
Jake.
Yes, Hi, Ohio issue do you Trust on your shop suite holiday parties are you pushing them all end to end should not be I'll. Just go to terminus 100, Helena and you don't hedge out not any goes home delinquency Donegal vintage tightening of credit card that you're getting the do it hobbyists should you transfer you may want machines, Tom in the payment. So you I'm sure.
Me, maybe either Jayco showed us the yards home finish aren't cheap you roll on San Antonio artists with June Copel Young children July shop. So you go and John signed the Hakan and UK yields on your sense I knew that you go short we won Yashi Sars. So the food huge actual the hockman the credit costs, the John should double touchy to Chicago.
John I get to trigger due diligence.
Yeah, I know how would you the tension Julio you mean, how should they are awfully strong hydrate happened almost I got on the attention.
Yeah, So I'm as Craig mentioned basically I think a there's the year on off Distinguishment. So when you look at the balance sheet and the announced it you can't necessarily get to the light numbers I'm now on the delinquency.
It's worth noting data there is a way to do about to note that its installment payment. So obviously you need to make certain adjustments given the fact that it is installment and there is a way in which as you can then translate I'm using the math to get to the a 3.5%.
And I think some of these things may just take a little bit time to lower run out.
And I think Ryan might have something they also wants to add on this.
And so already Bonnie in Q sender vintages, each oceangeo under as Okay got it you could see again see anything on the E. Bonnie into accused to read about nature autism Goody P to P. The when beat in the PWT agencies or do think that maybe we could be a meeting each and then take handled CUSIP communism.
Look at the moment in People's your competitors when they look at me, let me briefly.
Yeah. So the 28 10-Q, three vantage was definitely impacted.
By the that's in the PDP sector, there, but you can see that quickly and the subsequent to quarter. Then thereafter, but things have improved so we certainly I made some adjustments accordingly.
Okay. Okay. My second question is on the recent customer behavior. When we spoke in February our you were seeing that you are extending.
Some relief to the customers were calling for our deferred maintenance the February installment so.
If you can give us some numbers around dared, how many what percentage of customers called did you defer for all of them.
Do they know that they have that installment has been added to the end of the long period, which means they have to pay.
And Oh as a follow up or kind of like asking the same thing in a different way what percentage of your customers are now.
80% or higher utilization.
And whether you have gone ahead and got credit lines for any of the customers you identify as risky the current in mind.
Woman, Thanks, and good that you go to Egypt also woman to use them do these additional input though to if somebody in the conjunct entering this year.
And we think will lead to you know what actual requirement that you want a good job seems to be easier when it comes at Johns Hopkins them to you then deeply on occasion that you move the needle country, but yet the PD lone volume, but no. We undertake opinion engine. So they did the residual wouldn't previous it say order that you celebrates the whole meetings.
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Uh huh.
Yeah, I think my the Miss some of the lion's numbers, there, but a in the first corridor.
Oh, we did say that there was a increasing risk so we actually tightened and made some adjustments.
And we distinguish returning a new customers I know customers. Some of the things that are we did a is a we lowered some of the lines. So actually the total amount of credit line. We are lower was probably the equivalent of something like a 2.1 billion. If a I got my numbers right and we do see actually now.
There are improving credit conditions that certainly again.
We know that are based on the behavior is out of the customers data, we may need to make some adjustments and we certainly did that in the first quarter actually.
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Yeah.
So Ryan said it was actually the and I suppose this is the way that we would look at the numbers.
In terms of the number of customers that will enter the arena, where the collections team will need to start contacting them and they're pursuing selection, it's only increased by about 10%.
And I'm actually increased significantly and we do see that it's coming back and coming down now for very specific locations like koubei the epicenter.
Which is also about 6% of our portfolio.
Obviously, we need to be even a more careful about it and then of course the numbers there can be a worse, but overall there hasn't really been that significantly a change in terms of Oh, we look at it maybe only about 10% or so.
Okay. Thank you and my occurred in last question is on the CBS.
Do you have a put option on new CB Israel and.
It is the cash is it still sitting overseas and where do you plan to use it.
Are they may do we have the right to call the CV.
Yes.
Here with four years.
For years after put option.
Yeah, we can put to us we can't.
No we can't get it everywhere.
But they can't put it to us after a few years.
So is it a in 2023 is that correct.
Add survey was your four so yeah 2023, well have the right to put it to ask Dan.
Okay, and the cash is still sitting overseas.
I'm not sure importantly.
Personally.
Oh, we are fortunate and only a portion.
Okay, you don't plan to use it at least temporarily for on balance sheet lending or something.
No.
Okay. Okay. Thank you very much.
Your next question comes from the line Alex you have from you'd yes, you're right, it's not been Alex.
Oh, Okay, Washington.
When.
When you take rate.
Right.
I think a quarter.
ER positive and negative.
Okay.
Yeah.
Yeah, Chris.
Oh, great shopping.
Oh thanks.
Yeah.
Thanks.
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Right.
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Hi, This is for a second thoughts on.
Well.
So I have.
A couple of follow up question first one is on the take rate outlook for the next couple of quarters.
Give up some kinda on workforce.
Tim drivers.
And secondly could you give us some updates on the program.
Application for consumer Finance, my sense, and lastly on the customer acquisition.
Given youre, probably going to take a more cautious approach on online traffic because my question, so which would be either.
Okay options that you.
The more focus on yeah.
Thanks.
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Yeah, So Alex I'm on the take rate a as you know the years various components are that are more pricing RFP, our our cost of capital.
Our level a risk and then maybe some other costs.
In terms of our pricing our IP. Our that's currently about the same but a in the future might come down a little bit and in terms of our financing cost as a team mention earlier it might drop a just a bit and the near future.
Finally on the risk well, it's definitely going higher right now, but we do you also see that it's getting better is recovering a bit so oh, probably a normalized sometime in the future.
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So Alex I'm on the customer acquisition. This year, we're probably looking at.
Stable customer acquisition process or rather stable growth.
In general there probably wouldn't be too many changes, but we're certainly as mentioned earlier and that this was actually extension or things that occurred last year as mentioned earlier well controlled the higher risk channels well controlled basically what we do on those channels and of course those channels tend to be the online channels I'm on the offline.
Side. Historically this has been a very stable channel were very good asset quality and we will probably continue to do more on it and focus a bit more on it this year and of course also have now as a we're growing in strength in terms of our brand we have increasing natural traffic and also our E. Commerce plan is getting great.
A recognition so we'll probably get additional grow from that as well. So overall, we're probably looking at a situation where stable growth certainly stable per customer costs consistent with what we've said before and given the growth that we've done last year, basically where in a position where we know that this.
That will lead to better operations, and certainly some better numbers and as a result, or we don't need to focus as much.
Customer acquisition. This year now on your second question on the consumer Finance license well basically there's certainly no new news at this time that we can give well, but the minute that we hear something we'll be certain to make sure that everybody is aware of it.
Your next question comes from the line up with John side.
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Okay, we set up a whole bunch these are people who.
No not without saying some of the Wendy.
So I have three questions. The first one is on the exposures of those relatively harmless customer we acquire online.
Just one there in terms of the outstanding balance in Austin and customer what portion not a.
Accounted for as a percentage over the whole portfolio and the second questions is about 10 or because you also mentioned that going into fourth quarter that has not declined quarter on quarter due to.
Some trial.
Behavior somebody diesel on new customers.
Because in this year we spent.
Those are you don't know customer you acquired last year will contribute increasing volume just wonder if that put a structural pressures or downward trend on on the 10 or structurally this year and some questions is it's about risk and provision as Ron just mentioned that the lumsden.
Needs to be collateral Oh that ratio has already stabilize just wonder what's the recovery Ray.
The connection efficiencies or other way.
Our house that trend than currently and then.
In terms of the recertify, an okay. The liability on the guarantee liability on balance sheet and that accounted for around 3% off our balance sheet loan and our two times of our 90 days delinquency.
I just wonder if that's a proper understanding of our current your subscriber. Thank you very much.
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Yeah sure Yeah, so Josh on the customers as well, we don't quite disclose it that way, but we didn't disclose the new active customers. So obviously, a you know the new active customers. A you know the active customers a you know the or loan origination. So you get a good sense.
Or what's happening.
Now in terms of the loan balance on that obviously, we don't disclose that but I'm, obviously again, new customers without a word or have a lower amount. So you can get an idea now. It is also worth pointing out that while we talked about it and I certainly earlier, the new customers may not necessarily be a high risk.
But just need a time to develop and of course, the channels or that we had a they can probably now provide.
At least a million enters a new customers a a corridor.
On the guarantees I think a you can't the calculated that way, but in the future maybe a range of time for you to discuss a weird Stanley I know how to get to the numbers.
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Yeah. So alia early repayment I'm I think we've taken steps and Weve reduced R&D credit and also made a other limits. So I'm at something data, we think that I'm well aware very quickly returned to more normal levels.
Your last question.
From the line.
When you make a comment I saw the they could you imagine series underestimate them, both and so without talking about and just Sina is not give we put up you know when there are clearly she sue can be Nathan since on the gene called back at either buttons are the argument.
So you saw centered I saw you hiking and it's a minimum kind those would be that cuts do you.
So even what can you kind of human resources Supercuts amendments will function. So you say 200 Boe the big as it does it has to come towards the quote so individually, but my methodology to it.
So yeah, John I'm, a as mentioned earlier the amount of people entering the delinquency.
In which our collections team needs to call has increased by a 10% but in terms of that people are coming out on its basically a 2% to 2.5% ourselves behind the normal levels, but even there we can see data. It's a returning the gradually to normal so I had said there's a.
Positive trend there.
Okay operator.
Yes. Your final question comes from the line of Dark meat definitely <unk> with Citi. Your line is now opened up.
Taking my question. So just two quick follow up I think.
And you can ask the question in Chinese and then just a translate.
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Sure. So the first question, it's about the take rate.
Just wanted to come from weather.
Taking into account.
Our consideration of the new accounting policy.
He's now model and whether that will lead to an Loma a sustainable it may come pack to the TB Nacco and the second question is regarding on.
I just wonder.
How much.
Our long.
And my last question Marty satellite model.
Obviously been changing.
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Correct.
I think referring to switch back to they can see model.
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Yeah, So I'm definitely on the take rake main I'm when we talk about it hasn't I'm, obviously, the fourth quarter numbers are still on the Oh standard. So I have said when we talk about these things it's still a very much on the old standard Ali impact from that.
Okay. So excel.
Right now it looks like ultimately, it's just a bit of a timing issue.
Ultimately, we will make the same amount of money and they said so it's just basically making it more conservative in the sense data more of the things will occur at the fraud.
And there will be less income recognized upfront, but that will be made up for more income being recognized towards the end of the lifelong so actually overtime. It's.
Essentially it's exactly the same it's just a timing issue.
When we make a full would therefore you mean, what me you unless you have seen it sounds change out she audience beyond the did that.
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So in part to wait for the weapons ours gets you don't send their swinging things up also constant.
Yeah. So obviously, we have online and offline teams, but oh pardon the.
Pardon the offline team is a offline right now so it's just the online and a handsome right now.
Getting straight to the a answer it's probably down a 20% in terms of the approval rate for online.
Yeah.
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Are you is here.
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Yeah. So.
Maybe a little bit surprising to hear but as Jay mentioned, what has been the impact of the cover 19 and a pandemic on the institutional side for us, it's actually been a limited impact or no impact or actually kind of a positive impact in fact, because there.
Now a lot of a macro policies because the macro policies are pushing the flight national firms to support the real economy and as a result, I'm all the your financial institutions have plenty of cash to deploy and I live in other places to deploy them. So clearly we see now that are.
Assets are not enough to meet all the demands from our funding partners and doesn't turns as allowed us to are getting benefits, whether it's on the leverage or guarantees. We're getting good terms. So for example for certain new financial institutions that we work with a they no longer to acquire deposits or security guarantees.
Now with regards to whether I'm. Some folks were may maybe call a no guarantee or may or open platform. We do see that in general the bigger banks they are slower to adapters.
For a consumer finance companies and a smaller institutions. They are very very well coming to the model and as Jay mentioned earlier, we're definitely looking to increase this significantly this year to be maybe something like one time, well rather a doubling what we had in terms of the amount last year.
I hope that answers your question operator.
Hi, there are no questions, yes, I know for sensors and they continue.
Okay. I think a then we can conclude the call.
Thank you, ladies and gentlemen, the dots agreed upon friends go for today. Thank you for participating you may now disconnect.
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