Internet Banks 3 Companies, 28.9% Share of Credit Loans to Medium and Low Credit Borrowers in Q3

Proportion of Medium-Interest Loans Handled by Internet-Only Banks (Korea Federation of Banks)

[Asia Economy Reporter Eunju Lee] The average proportion of mid- to low-credit borrowers' unsecured loans handled by the three internet-only banks in the third quarter reached 28.9%.

According to the Bankers Association on the 25th, the average share of mid-interest rate loans (based on outstanding balance) handled by Kakao Bank, K Bank, and Toss Bank in the third quarter was 28.9%. This is an increase of 1.4 percentage points compared to 27.5% in the previous quarter.

Toss Bank's share of mid-interest rate loans in the third quarter was 39.0%. During the same period, K Bank recorded 24.7%, and Kakao Bank recorded 23.2%. The increase from the previous quarter was 3.7 percentage points, 0.7 percentage points, and 1.0 percentage points, respectively.

The supply volume increased proportionally with the rise in the share of loans to mid- to low-credit borrowers. Kakao Bank supplied unsecured loans worth 2.1147 trillion KRW to mid- to low-credit customers from January to October this year, surpassing last year's annual supply of 1.7 trillion KRW. Toss Bank's outstanding loans to mid- to low-credit borrowers also more than doubled to 2.7 trillion KRW as of the 19th, compared to 1.3338 trillion KRW in June.

K Bank supplied 1.049 trillion KRW in mid-interest rate loans in the first half of this year and handled 550.2 billion KRW in the third quarter, bringing the cumulative loan volume for the third quarter to approximately 1.6 trillion KRW. This is more than double last year's annual supply volume of 751 billion KRW.