Inbaeng 3 Companies Boost Mid-to-Low Credit Loans... Goal Achievement 'Within Sight'

[Asia Economy Reporter Buaeri] The three internet-only banks are stepping up efforts to increase the proportion of loans to low- and medium-credit borrowers as the year-end approaches.

According to the financial sector on the 26th, the proportion of unsecured loans to low- and medium-credit borrowers rose simultaneously in the third quarter, bringing the year-end target within reach.

Looking at the 'proportion of unsecured loans to low- and medium-credit borrowers (based on balance)' disclosed by the Korea Federation of Banks for each internet-only bank, as of the end of September, KakaoBank was at 23.2%, K Bank at 24.7%, and Toss Bank at 39%.

Compared to the end of June, KakaoBank increased by 1.0 percentage point, K Bank by 0.7 percentage points, and Toss Bank by 2.7 percentage points.

The target proportions set by each internet-only bank for the end of this year are 25% for KakaoBank and K Bank, and 42% for Toss Bank. Last year, internet-only banks failed to reach their initially set targets, damaging their reputation.

Since its launch in July 2017, KakaoBank has supplied unsecured loans to low- and medium-credit customers totaling 6.6245 trillion KRW as of last month.

As of the end of last month, the balance of unsecured loans to low- and medium-credit borrowers was 3.0789 trillion KRW, and the proportion of loans to low- and medium-credit borrowers exceeded 24% as of that date.

From January to October this year, KakaoBank supplied unsecured loans to low- and medium-credit customers amounting to 2.1147 trillion KRW, already surpassing the 1.7 trillion KRW supplied throughout the previous year.

K Bank announced that the cumulative loan amount to low- and medium-credit borrowers in the third quarter was 1.5992 trillion KRW. This is more than double the total low- and medium-credit loan amount of 751 billion KRW for K Bank last year.

Toss Bank has supplied household loans for low- and medium-credit customers totaling 2.7 trillion KRW since its launch until recently. As of the 19th, the proportion of loans to low- and medium-credit borrowers recorded 40.1%.