Busan Bank Introduces Alternative Credit Scoring Model... Financial Support for Vulnerable Groups

On the 13th, BNK Busan Bank introduced an alternative credit evaluation model using non-financial information to expand financial support for vulnerable customers.

The alternative credit evaluation model adds non-financial information, such as large amounts of automatic transfer data including gas and communication bill payment records, to customers' financial transaction information to more precisely assess individual creditworthiness.

With the introduction of this alternative credit evaluation model, more sophisticated loan screening has become possible. In particular, it is expected to improve financial accessibility for medium- and low-credit customers and those with insufficient financial history, who previously found it difficult to obtain loans under traditional credit evaluation models.

Busan Bank Headquarters.

Lee Soo-chan, Head of Credit Sales Division at BNK Busan Bank, said, “By enhancing the model using lifestyle data beyond traditional financial data, we have increased the discriminative power of the credit loan screening system,” adding, “We will make various efforts to expand financial support for vulnerable groups.”

Starting from the 13th, Busan Bank is lowering interest rates on housing, jeonse, and credit loans. Additionally, it plans to launch a high-interest refinancing loan in April and continues to provide “warm financial support” for coexistence with vulnerable groups and small business owners in the region.