Jiayin Group (JFIN) Q1 FY26 earnings call: guidance and Q&A

The consumer lending industry remained in an adjustment phase during Q1 FY26, with credit demand recovering at a gradual pace, leading to overall industry pressure^🌐. Against this backdrop, Jiayin Group focused on refining operations for its high-quality existing borrower base and structurally enhancing its business model.

This strategy included segmenting existing borrowers based on risk scores and behavioral insights to implement differentiated engagement strategies, which contributed to a higher repeat borrowing rate.

The company is advancing a structural upgrade through three key initiatives. Firstly, enhancing joint operations and tech empowerment for financial institutions, providing comprehensive solutions covering borrower engagement, technology services, and risk modeling. Secondly, developing a diversified product portfolio, including auto-backed loans and digital intelligence micro loans, with the auto-backed loan business seeing strong growth after launching its 3.0 system.

Thirdly, expanding international business, with significant loan volume growth in Indonesia (20% QoQ, >2x YoY) and Mexico (35% QoQ, strong YoY).

Jiayin Group is integrating AI technologies across its fintech ecosystem to accelerate the evolution of its technology service capabilities. In intelligent engineering, AI has reduced the feature iteration cycle for risk management models from several days to less than one hour.

AI agents now generate approximately 30% of all AI-assisted code, improving development efficiency by around 20%. Customer service operations have seen intent recognition accuracy improve from 78% to 93%, while model inference costs were reduced by 90%.

Leveraging multimodal AI technologies, the company has strengthened the protection of user interests and advanced its risk management strategy from reactive defense to proactive prevention. During Q1, approximately 290,000 fraudulent borrowers were identified and blocked, and 113,000 malicious applications associated with organized fraud activities were intercepted.

The multimodal anti-fraud system has identified about 5 million suspicious audio and video samples with an accuracy rate exceeding 90%.

The 90-plus day delinquency ratio increased sequentially to 2.25% as of Q1 end. However, the deterioration in asset quality caused by rising credit risk last year has been improving, with new borrower credit performance declining to the lowest levels of the previous year by March/April.

For higher-risk segments, the company tightened underwriting criteria and credit limits, while for high-quality borrowers, it focused on improving retention and refining engagement strategies.