KakaoBank's Mid-to-Low Credit Loans Account for 24%... Cumulative 6.6 Trillion Won

[Asia Economy Reporter Bu Aeri] KakaoBank announced on the 25th that since its launch in July 2017, the total amount of unsecured credit loans supplied to middle- and low-credit customers (based on KCB, credit scores in the lower 50%) has reached 6.6245 trillion KRW as of last month.

As of this date, KakaoBank's loan balance ratio for middle- and low-credit customers has exceeded 24%. As of the third quarter of this year, it was 23.2%.

The balance of unsecured loans to middle- and low-credit customers last month was 3.0789 trillion KRW, an increase of 614.6 billion KRW compared to the end of last year. The amount of unsecured credit loans supplied to middle- and low-credit customers by KakaoBank up to October this year is 2.1147 trillion KRW.

Among customers who used KakaoBank's middle- and low-credit loan products in the third quarter of this year, the customer whose credit score increased the most rose from 569 points to 945 points, an increase of 376 points. The bank also stated that there was a customer whose score rose from 627 points to the perfect score of 1000. It was analyzed that one in five customers (20.3%) were thin-file customers with insufficient financial history, and 87% of them were in their 20s.

Meanwhile, KakaoBank plans to apply its recently developed proprietary alternative credit scoring model, 'KakaoBank Score,' within this year.