FinVolution's Q2 2025: Navigating Contradictions in Regulatory Risks and International Growth

Impact of regulatory uncertainty on risk levels in China, international revenue contribution outlook, international business growth and profitability, and regulatory impact on international business growth are the key contradictions discussed in FinVolution Group's latest 2025Q2 earnings call.



Revenue and Transaction Volume Growth:
- Revolution Group reported net revenue of RMB3.6 billion in Q2, up 13% year-over-year, driven by a 10% increase in transaction volume in China and a 39% surge in international transaction volume.
- Growth was primarily attributed to robust international business expansion and stable performance in China, supported by effective AI-powered marketing strategies and diverse customer acquisition channels.

International Business Expansion:
- International transaction volume increased to RMB3.2 billion, a 39% year-over-year rise, with loan balance jumping 50% to RMB2.1 billion.
- Expansion was driven by increased customer base, onboarding 1,600,000 new borrowers, and strategic partnerships with leading e-commerce and technology platforms in international markets.

Risk Management and Regulatory Adaptation:
- Despite regulatory changes, Revolution maintained a stable risk profile, with day one delinquency rate rising only 10 basis points quarter-over-quarter to 4.7%.
- The company's strong risk infrastructure and close dialogue with funding partners enabled it to adapt swiftly to regulatory changes and maintain healthy risk levels.

ESG Commitment and Fraud Prevention:
- Revolution Group published its seventh annual ESG report, demonstrating substantial progress in anti-fraud capabilities and service quality improvements.
- The company's intelligent fraud prevention system detected over 7,000 suspicious activities daily, blocking more than 26,000 fraud attempts and protecting institutions from potential losses exceeding RMB300 million.