Hong Min-taek, CEO of Toss Bank, Press Conference
Introducing Overdraft and Emergency Loans for the First Time
The third internet-only bank, Toss Bank, officially launched on the 5th. From this day, Toss Bank will sequentially begin services starting with customers who participated in the pre-registration. Hong Min-taek, CEO of Toss Bank, is explaining the significance and goals of Toss Bank's launch during an online press conference held on the same day.
[Asia Economy Reporter Kiho Sung] Toss Bank, the third internet-only bank, officially launched on the 5th, declaring itself as a ‘completely new bank.’ Starting from this day, Toss Bank began sequentially rolling out services, beginning with customers who participated in the pre-registration. Toss Bank plans to embrace about 30% of those who found it difficult to get loans from existing first-tier banks as ‘healthy middle- to low-credit borrowers’ and make them Toss Bank customers.
Hong Min-taek, CEO of Toss Bank, said at an online press conference held on the same day, "A bank is a place where customers save and grow their money and can borrow money at appropriate interest rates when needed," adding, "Toss Bank aims not to be just a better bank but a ‘new bank.’"
Toss Bank attracted attention from the pre-registration stage. More than one million customers flocked to the pre-registration, which began on the 10th of last month. Customers who pre-registered will receive notification messages in order, and after completing the Toss Bank sign-up process, they can use all services without restrictions, including account opening, credit loan inquiry and execution, and check card issuance. If you have not yet participated in the pre-registration, you can do so via the home screen banner or the ‘Toss Bank’ page in the full tab within the Toss application (app).
The credit loan product of Toss Bank, unveiled for the first time on this day, offers a wide range of interest rates from a minimum annual rate of 2.76% to a maximum of 15.00%. Regarding this, Toss Bank plans to provide fair credit evaluations and offer reasonable interest rates and loan limits not only to high-credit borrowers but also to middle- and low-credit borrowers and 13 million new filers (those with insufficient financial history). The credit loan limit ranges from a minimum of 1 million KRW to a maximum of 270 million KRW. The ‘Toss Bank Minus Account,’ which charges interest only on the amount used, and the ‘Toss Bank Emergency Loan’ with a maximum limit of 3 million KRW were also introduced on this day.
CEO Hong said, "Toss Bank provides optimal loan interest rates and limits through a single credit loan product without distinguishing between office workers, self-employed, prime, or middle-interest loans," adding, "We have lowered the bank’s threshold through policies that embrace a wide range of customers, including middle- and low-credit borrowers."
The third internet-only bank, Toss Bank, officially launched on the 5th. From this day, Toss Bank will sequentially begin services starting with customers who participated in the pre-registration. Hong Min-taek, CEO of Toss Bank, is explaining the significance and goals of Toss Bank's launch during an online press conference held on the same day.
The simple loan interest rate inquiry and execution process also draws attention. Customers can check their loan limit and interest rate with a single inquiry and execute the loan with one approval. Toss Bank’s ‘My Limit Management Service’ notifies customers in advance of changes in loan interest rates and limits due to fluctuations in their credit scores. Additionally, if a loan customer’s credit score improves and conditions for lowering the interest rate are met, Toss Bank sends a notification to proactively execute a ‘continuous interest rate reduction request.’
The previously disclosed ‘Toss Bank Account’ is a demand deposit account that pays 2% annual interest with no conditions such as maturity or minimum deposit amount. The interest rate is uniformly 2% per annum, calculated on a daily basis from the day the amount is deposited and paid monthly.
The Toss Bank check card also offers top-level benefits domestically without conditions such as previous month’s spending. When paying in five daily life categories?coffee, fast food, convenience stores, taxis, and public transportation?customers receive up to 46,500 KRW cashback monthly. Overseas, 3% cashback is provided immediately on usage regardless of online or offline. Additionally, it is equipped with a one-time password (OTP) function using near-field communication (NFC) technology, enabling safe and easy high-value transfers by touching the check card to the back of the phone.
CEO Hong pledged, "We will continue to eliminate all restrictions that were passed on to customers and strive to return the best benefits to customers by utilizing new technologies and data."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
