360 DigiTech, Inc. (QFIN): ANSOFF MATRIX [Dec-2025 Updated]

You're trying to map out exactly where 360 DigiTech, Inc. should place its chips for growth, and honestly, the strategy is laid out right here in the Ansoff Matrix. We're looking at concrete actions, from doubling down on your 275.8 million existing users to drive product usage, to aggressively exploring new international markets using that capital-light model. To be fair, the foundation is solid-you've got a C2M2 delinquency rate near a historical best of 0.57% and a strong RMB 6.42 billion non-GAAP net income from 2024 to fund these moves. This breakdown translates near-term opportunities into clear, actionable vectors across penetration, development, and even bold diversification moves; check out the details below to see the specific next steps for your teams.

360 DigiTech, Inc. (QFIN) - Ansoff Matrix: Market Penetration

You're looking at how 360 DigiTech, Inc. (QFIN) can squeeze more value from its current customer base and product set. This is about depth, not breadth, right now.

Deepen engagement with the 275.8 million existing consumers to increase product usage.

The focus here is on increasing the lifetime value from the existing pool of 275.8 million consumers. While we don't have the exact metric for product usage frequency, we see the platform's AI-driven solutions gaining traction. The tech-solutions loan volume jumped approximately 218% Quarter-over-Quarter (QoQ) in the third quarter of 2025, reaching about RMB 5.4 billion. Furthermore, proprietary AI agents are in bank pilots with approximately 50% engagement. This shows a clear path to embedding services deeper into the user journey.

Expand the capital-light model's share within the current 165 financial institution partners.

Growing the capital-light model means increasing the volume facilitated through the 165 current financial institution partners without increasing 360 DigiTech, Inc.'s (QFIN) own balance sheet risk. The capital-light revenue stream, derived from Platform Services, is key to this strategy. The company's non-GAAP net income for the third quarter of 2025 was RMB 1.51 billion, supported by a strong cash position of RMB 14.35 billion in cash and short-term investments. The growth in AI-driven solutions supports this capital-light path.

Leverage AI to further reduce the C2M2 delinquency rate, which was near a historical best of 0.57%.

Risk control remains paramount, especially with asset quality pressures. The C-M2 delinquency rate, which represents the outstanding delinquency rate after 30 days collection, increased Quarter-over-Quarter to 0.79% in the third quarter of 2025, up from 0.64% in the second quarter. Management is actively using AI enhancements, completing 611 risk model iterations and increasing the share of higher-quality borrowers. The goal is to return to levels near the historical best of 0.57%. The company increased provisions by RMB 2.58 billion in Q3 2025.

Here's a quick look at the recent asset quality metrics:

Increase the volume of domestic ABS issuance, targeting over 30% growth for the full year 2025.

The company is aggressively pursuing Asset-Backed Securities (ABS) issuance to fund its capital-heavy loan balance and lower funding costs. The target for the full year 2025 is over 30% growth in total ABS issuance volume. In the first half of 2025, ABS issuance reached about RMB 14.4 billion, up about 45% year-on-year. For the first three quarters of 2025, the company issued a record RMB 18.9 billion in ABS, representing an increase of over 40% year-on-year. The third quarter alone saw approximately RMB 7.8 billion issued, a year-over-year increase of about 70%.

The ABS issuance progress is detailed below:

• ABS Issuance Target (FY 2025): Over 30% growth.
• ABS Issuance (H1 2025 YoY Growth): Approximately 45%.
• ABS Issuance Volume (H1 2025): Approximately RMB 14.4 billion.
• ABS Issuance Volume (Q3 2025): Approximately RMB 7.8 billion.
• Total ABS Issuance (First Three Quarters 2025): RMB 18.9 billion.

Run targeted promotional campaigns to capture market share from smaller, less compliant competitors.

This strategy relies on 360 DigiTech, Inc.'s (QFIN) perceived higher compliance standards relative to smaller players. The total net revenue for the third quarter was RMB 5.21 billion. The company is also executing a share repurchase program; as of August 14, 2025, approximately 7.1 million ADSs were purchased for a total of approximately RMB 277 million at an average price of USD 38.9 per ADS.

Finance: draft 13-week cash view by Friday.

360 DigiTech, Inc. (QFIN) - Ansoff Matrix: Market Development

You're looking at how 360 DigiTech, Inc. (QFIN) can take its established domestic model-connecting borrowers to financial institutions using tech-and push it into new geographic territories. This is Market Development, and it relies on scaling what works while managing the capital outlay.

The foundation for this expansion is solid, judging by the latest figures. For the second quarter of 2025, the company posted total net revenue of RMB 5.22 billion, with non-GAAP net income reaching RMB 1.85 billion. That's a strong base to fund international exploration. The total loan facilitation and origination volume on the platform hit RMB 84.6 billion in Q2 2025, showing the sheer scale of the engine you aim to export. Plus, the take rate for the quarter settled at 5.4%, which is the key metric for how much value is captured from that volume.

Here's a snapshot of the Q2 2025 operational scale you're leveraging for this push:

The strategy for Market Development centers on disciplined, tech-first entry. You're not just sending people overseas; you're exporting the technology stack that drives credit decisions and risk assessment. The standardized risk management SaaS modules are the product for this new market, and the plan is to test the waters first. Honestly, you can't afford to go big bang on the first try.

The core actions driving this Market Development quadrant look like this:

• Accelerate the proactive exploration of additional international opportunities, as stated in Q2 2025.
• Pilot the standardized risk management SaaS modules in one new Southeast Asian market.
• Establish strategic partnerships with local financial institutions in a new region for loan facilitation.
• Use the capital-light model as the primary entry strategy to minimize initial capital expenditure overseas.
• Focus on markets with regulatory frameworks similar to China's to ease compliance onboarding.

The capital-light approach is defintely key to minimizing upfront capital strain. Back in Q2 2021, the capital-light model already accounted for roughly 56% of total volume, and it was trending toward two-thirds by year-end 2021. The goal is to maintain or increase this ratio in new geographies, meaning 360 DigiTech, Inc. (QFIN) acts as the technology provider rather than the primary funder. This keeps the leverage ratio-defined as risk-bearing loan balance divided by shareholders' equity-under control. For context, that ratio was down to 4.8x in Q2 2021 from 8.3x a year prior, showing the effectiveness of this shift even then.

Furthermore, the existing platform scale supports the partnership goal. As of the Q2 2025 report, 360 DigiTech, Inc. (QFIN) was already working with 165 financial institutions. The international play is about replicating that network effect in a new country, using the proven tech-like the ICE (Intelligence Credit Engine) product-as the main value proposition to attract those first few local partners. If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

360 DigiTech, Inc. (QFIN) - Ansoff Matrix: Product Development

You're looking at how 360 DigiTech, Inc. (QFIN), now Qifu Technology, Inc., plans to grow by developing new offerings for its current market base. The foundation for this is solid; for instance, total net revenue in 2024 was approximately CNY 16.5 billion, showing a 14.4% year-over-year increase, with net profit reaching about CNY 4.1 billion in that same year.

The strategy centers on deepening technology integration and expanding service lines within the existing Chinese user and institutional client ecosystem.

Enhance the AI agent platform to drive digital transformation for existing financial institutions.

• Leverage sophisticated machine learning models and data analytics capabilities.
• Provide technology services across the entire loan lifecycle.
• Solutions create advantages in customer acquisition and risk assessment.

Introduce new wealth management or insurance tech products to the existing Chinese user base.

While the core remains Credit-Tech, the product development path includes adjacent financial technology services to serve the current consumer base more holistically.

Develop advanced, modular SaaS solutions beyond credit assessment for institutional clients.

360 DigiTech, Inc. already offers standardized risk management service in the form of SaaS modules to institutional clients. This is a clear path to product development by expanding the functionality of these modules beyond initial credit assessment.

Expand the embedded finance channels, building on the 18 new channels added in 2024.

You're focused on replicating the successful embedded finance model across more traffic structures. The performance metrics from Q1 2024 show strong traction in these existing partnerships; the loan volume of the top two channels increased by 8% and 12% sequentially. Furthermore, the Return on Assets (ROA) for the embedded finance model improved by about 1 percentage point sequentially in Q1 2024. By April 2024, the daily average loan volume across these channels reached RMB11,000,000.

Offer working capital financing products specifically tailored for micro and small enterprises in China.

The focus on Micro and Small Enterprises (SMEs) is a known growth engine. As of an earlier period, the company had covered around 20 leading SaaS service providers to drive SME lending acquisition channels. This specific product tailoring is key to capturing the unmet demand in that segment.

Finance: draft 13-week cash view by Friday.

360 DigiTech, Inc. (QFIN) - Ansoff Matrix: Diversification

You're looking at aggressive growth paths for 360 DigiTech, Inc. (QFIN) outside its core Chinese lending facilitation business. Diversification here means moving into new products and new markets simultaneously, which carries the highest risk but also the highest potential reward.

Acquire a non-lending fintech company in a new international market, like a payments platform.

This move targets new products in new geographies. Imagine acquiring a payments platform in Southeast Asia. You'd be looking to integrate your AI and risk-scoring technology into their existing transaction flow. The capital for this could come from retained earnings, perhaps a portion of the strong 2024 non-GAAP net income of RMB 6.42 billion. You'd need to assess the target's transaction volume; for example, if a target processes $500 million in monthly payments, that's a new revenue stream entirely separate from credit facilitation fees.

Allocate a portion of the strong 2024 non-GAAP net income of RMB 6.42 billion to a global VC fund focused on B2B fintech.

This is a strategic, lower-control diversification. You're buying optionality on future technologies. If you allocate, say, 10% of that RMB 6.42 billion, that's RMB 642 million placed into a fund. This fund would focus on B2B fintech solutions, which aligns with 360 DigiTech, Inc.'s stated strategy of enhancing financial institutions through technology, as seen in their 'AI+ credit' strategy. This capital deployment is about scouting the next wave of technology that could eventually be integrated or acquired outright.

Launch a new, non-credit-related technology service, such as cloud-based data security, in a new region.

This is product diversification into a new service line, perhaps starting in a region where regulatory clarity on data security is high, like Singapore or the UAE. You're selling technology expertise, not credit. You'd need to staff a new regional tech hub. The operating expenses for this launch would need to be covered by existing liquidity, such as the non-restricted cash balance reported previously, or by the projected Q3 2025 non-GAAP net income guidance, which management expects to be between RMB 1.6 billion and RMB 1.8 billion.

Enter the digital banking or neo-bank space in an emerging market outside of China.

Launching a neo-bank in, say, Brazil or Indonesia, is a massive undertaking, requiring significant regulatory capital. This is a full-scale market and product development effort. You'd be competing directly with established local players. The operational scale required here means you'd need to look at your long-term funding capacity. The company expects its total ABS issuance to grow by over 30% for the full year of 2025, which helps lower the overall funding cost compared to 2024, making capital deployment for large ventures more feasible.

Use the RMB 14.4 billion H1 2025 ABS issuance capacity to fund a new, non-core international venture.

Asset-Backed Security (ABS) issuance is a core funding mechanism. The stated capacity of RMB 14.4 billion for H1 2025 represents a significant pool of capital that can be ring-fenced for a specific, non-core international project, like a joint venture for cross-border trade finance technology. This separates the funding risk from the core domestic operations. Here's a look at how funding sources might be viewed for such a venture:

The decision to use the RMB 14.4 billion capacity means you are prioritizing debt funding for this specific, high-growth, high-risk international play. This is a defintely aggressive stance.

Here are the key strategic options you are weighing under this Diversification quadrant:

• Acquire payments platform in new geography.
• Allocate RMB 642 million (10% of 2024 income) to B2B fintech VC.
• Launch cloud-based data security service internationally.
• Enter digital banking in an emerging market.
• Ring-fence RMB 14.4 billion ABS capacity for a new venture.

Finance: draft 13-week cash view by Friday.