Onto Industry Sees Over 20% Growth in Loan Size Since Official Companies Emerged

[Asia Economy Reporter Song Seung-seop] The cumulative loan volume in the online investment finance industry has increased by more than 20% since the official launch of companies. Based on rapid growth, the industry is aggressively recruiting talent and investing.

According to ‘OntuNOW,’ an online investment finance information service provided by Daily Funding on the 9th, the cumulative loan amount of 42 online investment finance companies as of last month was 10.5954 trillion KRW. Compared to 9.7461 trillion KRW at the end of last year, it increased by about 849.3 billion KRW (8.7%). The top three companies with the largest increase in cumulative handling amount over the past three months are Ninety Days, PeopleFund, and Together Funding.

The growth is even more remarkable when compared to June last year, when the first three registered online investment finance companies (8 Percent, Lendit, PeopleFund) appeared. The cumulative loan amount was 8.5393 trillion KRW. Compared to the end of last month, the size has increased by 2.0561 trillion KRW (24.0%) in about nine months.

Regarding the delinquency rate, it has been fluctuating. In June last year, the delinquency rate dropped from 5.19% to 3.60% in three months, marking a record low. However, it surged again to 5.12% in February. As of this day, the delinquency rate is around 3.53%, showing a downward trend.

As for the loan balance, it recorded 1.2199 trillion KRW as of the end of last month. Despite the increase in registered companies, the loan balance steadily decreased from 1.2727 trillion KRW in June last year to 1.09 trillion KRW in December. It has started to increase every month since the beginning of this year and currently stands at 1.2199 trillion KRW. The companies with the largest increase in loan balance are PeopleFund, 8 Percent, and Oasis Fund.

However, in the past three months, the number of registered online investment finance companies increased from 35 to 42, affecting various indicators. The total cumulative handling amount of the seven newly registered companies this year is 240.059 billion KRW. The loan balance was recorded at 11.75094 billion KRW.

Meanwhile, the online investment finance industry is focusing on aggressive talent recruitment and advancement of proprietary credit evaluation models to secure competitiveness and demonstrate technological capabilities this year.