Customers Who Have Refinanced More Than 3 Times with Pinda
Show 10%p Higher Credit Score Increase Than Customers with One Major Accident
[Asia Economy Reporter Sim Nayoung] Fintech company Finda, which provides personalized loan portfolios, announced on the 30th that 9 out of 10 users of its ‘My Loan Management’ service have maintained or improved their credit scores. This is thanks to consolidating customers' financial data scattered across various sources for loan management purposes, and offering various features such as delinquency prevention alerts and refinancing loan diagnosis services.
Finda’s ‘My Loan Management’ service, launched in December 2020, is a comprehensive loan management service that shows customers their loan details at a glance and links repayment accounts to intuitively indicate whether there is sufficient or insufficient balance in the repayment account.
Since the start of the MyData project earlier this year, the service has been enhanced by receiving all financial data related to customers’ loans in real-time from a total of 324 financial institutions, improving data accuracy.
Among Finda customers using the ‘My Loan Management’ service, 9 out of 10 maintained or increased their credit scores. By linking customers’ repayment accounts, the service helps check whether there is a balance in the account on interest due dates and supports timely interest payments through active delinquency prevention alerts. Additionally, it assists wise financial management with features such as a surplus money calculator that advises which loan to repay first when extra funds are available, and a Debt Service Ratio (DSR) calculator to consider when taking out new loans.
The more times customers refinance loans through Finda, the more their credit scores tend to improve. Finda compared credit score increases between customers who used refinancing once and those who used it three or more times. As a result, customers who refinanced twice had a 7 percentage point (p) higher credit score increase than those who refinanced once, and the increase was 3 p higher when going from twice to three or more times. In other words, the gap in credit score increase between customers who refinanced once and those who did so three or more times widened to 10 p.
Finda actively encourages refinancing through its ‘Refinancing Diagnosis Alert’ feature and the pilot ‘Refinancing Guarantee’ service. The ‘Refinancing Diagnosis Alert’ notifies customers who took loans through Finda about the possibility of switching to better terms after one month. From August last year to June this year, customers who accessed the app via the ‘Refinancing Diagnosis Alert’ service lowered their interest rates by an average of 3.8 p and increased their loan limits by 13.6 million KRW. The pilot ‘Refinancing Guarantee’ service, which compensates 50,000 KRW if customers who linked their MyData fail to switch to a lower interest loan within this year, is also underway.
Lee Hyemin, co-CEO of Finda, said, “We feel pride and responsibility in objectively confirming that Finda’s loan management service and refinancing not only improve the convenience of loan management in the short to medium term but also help manage credit scores in the long term.” She added, “Our goal is to improve credit scores to strengthen individuals’ financial soundness and establish a virtuous cycle that enables better loans in the future. Finda will fulfill its role as a platform encompassing both loan management and credit score management.”
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