U-Bank Consortium Announces Entry into Fourth Private Bank... Lendit, Lunit, SamzzumSam, TravelWallet, Hyundai Marine & Fire Participate

Competition for the position of the 4th internet-only bank is intensifying. Following the Sosobank and KCD Bank consortiums, the U-Bank consortium has newly emerged.

The U-Bank consortium announced on the 5th that it is preparing to apply for a preliminary license for an internet-only bank. It plans to identify financially underserved groups such as small business owners, seniors, and foreigners, and provide hyper-personalized financial services.

[Image provided by U-Bank Consortium]

The U-Bank consortium’s plan is to address the difficulties faced by small business owners and employees of small and medium-sized enterprises (SMEs) from a financial perspective. According to the Ministry of SMEs and Startups, 80.9% of all workers in South Korea belong to small businesses or SMEs. They find it difficult to access first-tier financial services due to loan limit excesses, lack of collateral, and substandard credit ratings. Accordingly, the U-Bank consortium will offer policy financial support, develop alternative credit evaluation models, and provide specialized non-face-to-face financial services for small business owners and SMEs.

In response to lengthened life cycles, it will also provide ‘senior-inclusive financial services’ to help design a stable future. In line with entering a multiethnic and multicultural society, it plans to establish ‘foreigner-inclusive financial services’ as well.

The U-Bank consortium includes ICT startups such as Lendit, an online investment-linked finance company focused on mid-interest loans; Jarvis & Villains (Samjeomsam), a tax refund fintech company; Travelwallet, a foreign exchange specialist fintech company; and Lunit, a medical artificial intelligence (AI) company, along with Hyundai Marine & Fire Insurance. A representative of the U-Bank consortium explained, “The specific shareholding ratios have not yet been decided.”

Kim Sung-jun, CEO of Lendit, said, “Companies that agreed on creating a new bank needed for the future have participated,” adding, “We believe we can present a win-win cooperation model between startups and traditional large corporations.”