Competition for upgrading the new credit rating model (CSS) among each company is also expected to heat up as Internet-only banks competitively forecast the expansion of mid-interest loans in the second half of this year. Kakao Bank, K-Bank and Toss Bank, which are preparing to launch in the second half of the year, plan to attract mid- and low-credit customers who could not exceed the bank loan threshold with existing CSSs as customers of medium-interest loans by using a new model that combines financial data and non-financial data.
The financial authorities plan to increase the size of Internet banks’mid- and low-credit loans to KRW 4.6 trillion this year from KRW 2 trillion last year, and increase the proportion of mid- and low-credit loans from the current 12% to more than 30% by 2023. Internet banks also promised to actively expand mid-interest loans in line with this trend. Kakao Bank has submitted a plan to the Financial Services Commission to adjust the portion of mid-interest loans in household credit loans to 30% by 2023 and Toss Bank to 32% and 44%, respectively.
The key to expanding mid-interest loans is the new CSS. In order for Internet-only banks to expand mid- and low-credit loans while maintaining asset soundness, it is essential to upgrade CSSs that can accurately assess customers’repayment capabilities.
The first step was Kakao Bank. “We will form a task force (TF) to expand the supply of credit loans to mid- and low-credit customers,” Kakao Bank said on the 3rd. “We plan to apply new CSS as early as next week and release credit loan products exclusively for mid- and low-credit customers in August.”.
Kakao Bank’s new CSS combines various non-financial data based on accumulated loan application customer data since its launch in July 2017. Non-financial data will 정책소액결제 reflect mobile phone micropayment information, Kakao Pay usage information, Kakao taxi ride history, health insurance premium payment and year-end settlement data. “The new CSS is much more detailed than before,” a Kakao Bank official said. “We plan to gradually expand non-financial data reflected in the CSS.”.
K-Bank is developing a new CSS with the aim of applying it within this year. K-Bank plans to actively utilize payment information held by shareholders and related companies. BC card payment information, the largest shareholder of K-Bank, and information from Danal, a mobile phone payment company, and its parent company KT will be reflected. In addition, GS Retail’s convenience store payment information, which holds a stake in K-Bank, is expected to be used. K-Bank expects to expand the minimum criteria for mid- and low-credit approval from 6th grade to some 9th grade customers. An official of K-Bank said, “We will use financial information and non-financial alternative information under an alias and use it for credit evaluation.” ” We will identify the propensity of a particular customer group with big data.”.