EXCLUSIVE—Chinese consumer finance firm LexinFintech will be using its IPO funds to expand its technology suite, keeping its focus on developing products that will make the consumer experience easier, the company told Bank Innovation.

“We will put it more in the technology side, we will keep focusing on that area,” Craig Yan Zeng, chief financial officer for LexinFintech, told Bank Innovation.

The company won’t “necessarily” focus on expanding support for new devices or services, but rather on technologies and products that will further add to customer “convenience,” Zeng said. It will focus its IPO funding on strategies that will increase the company’s “long-term value” for its customers.

LexinFintech had its trading debut on NASDAQ yesterday, opening at $9 per share under the ticker, LX. The company raised $108 million in its IPO, a figure that came after the company amended its target goal due to regulatory concerns for Chinese online lenders.

The company’s competition includes other online lenders like Qudian and PPDAI Group, both of whom had IPOs this year with stocks that have decreased nearly 50%.

For LexinFintech, the regulatory pressure — which has been increasing for Chinese firms in the sector as the country attempts to reduce risk — is slightly decreased as it focuses on a particular segment of consumer, Zeng said.

“This is a very innovative and new industry in China, mot of the regulations are expected,” Zeng said. “[LexinFintech] targets young adults in the market, so they have high earning potential.”

LexinFintech focuses on younger customers with college educations (about 3-4 years in school, according to Zeng), whose future earnings potential demonstrates a good ability to pay back the loan, Zeng said.

The company facilitates a wide variety of loans, between a couple of hundred and a couple thousand RMB. Its maximum loan would be about $5,000 USD, according to Zeng.

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