Zaim Credit Systems PLC (LON:ZAIM), the Russia-focused microloans group, said it increased lending by 65% in the fourth quarter of 2020 as it switched its business online.
Loans issued over the three month period were £3.8mln compared to £2.3mln in the previous quarter, with a 250% jump in online borrowing to £2.9mln.
Online now comprise 76% of the loan book, Zaim said, which added that the group continued to trade profitably in the fourth quarter.
Over the full year to end-December 2020, Zaim lent £10.3mln, an 11% rise on 2019, with online jumping to £4.8mln from £0.3mln.
Zaim has traditionally lent through shops in the Moscow area, but due to coronavirus lockdowns in the city it had to shift its emphasis.
Shop-originated loans dropped to £5.5mln (2019: £9mln), while there was an increase in average bad debts over the period to 14.1% from 7.6% that Zaim put down to a higher proportion of first-time online borrowers.
Siro Cicconi, chief executive, said the lockdown measures taken by the Russian government had accelerated the move online.
“The business continues to be cash-generative, which we are reinvesting in order to accelerate further growth of our online business. Our online-focused strategy allows for lower fixed costs and faster growth that makes us confident in the long-term development of our business," he added in a statement.