Duzon Bizon is showing strong performance. The news that it is establishing a tentative-named internet-only bank specialized for small and medium enterprises (SMEs) and small business owners, called ‘Duzon Bank,’ to introduce innovative finance based on corporate data appears to be influencing its stock price.
As of 10:37 AM on the 4th, Duzon Bizon is trading at 52,300 KRW, up 18.5% from the previous day.
Duzon Bank plans to promote inclusive finance in the SME and small business sectors, which traditional banks have found difficult to expand into, by leveraging the vast amount of corporate data held by Duzon Bizon and its competitive corporate solutions. As a leading company in AI transformation (AX), it is expected to launch a bank specialized for SMEs and small business owners that combines its ICT technology and innovative financial service capabilities such as accounts receivable factoring.
Previously, there was a lack of accurate credit rating data for SMEs and small business owners, making it difficult to supply funds smoothly as they relied on collateral and guarantees. Duzon Bank is expected to bring innovation in interest rates and credit limits for SMEs and small business owners in financial blind spots by continuously specifying a lineup of customized financial products for small corporations, individual business owners (SOHO), and their employees.
Duzon Bizon aims to first form a Duzon Bank consortium and strengthen competitiveness by involving major commercial banks, policy institutions, and leading large corporations as shareholders. It has already secured the experience and capabilities to develop AI-based corporate credit evaluation models using corporate data necessary for an internet-only bank specialized in SMEs and small business owners.
Focusing on core corporate solutions such as ERP and groupware, it plans to enhance the value of corporate data for financial innovation by utilizing corporate cash flow information, data verification devices, and internal control functions. It shows a determination to break away from the standardized form of existing financial sectors and radically transform the financial procurement paradigm for SMEs and small business owners.
Financial authorities proposed a direction for institutional improvement in the banking sector through a policy announcement in July last year. They decided to promote the entry of new players into the banking sector and to proceed with new approvals for internet-only banks. New approvals will be granted after strict reviews of soundness and business plans, and application guidelines are reportedly being prepared. In line with this, Duzon Bizon has already made considerable preparations and plans to apply for approval according to the financial authorities’ schedule.
A Duzon Bizon official said, "We plan to focus on expanding financial inclusiveness for SMEs and small business owners, the backbone of the national economy, through Duzon Bank," adding, "Through fair competition with existing financial sectors, we will expand innovation in fund supply for SMEs and small business owners across the financial industry and create positive ripple effects for the Korean economy."
Duzon Bizon, together with Shinhan Bank and SGI Seoul Guarantee Insurance, established Techfin Ratings and applied for the main license for corporate rating provision in February. Lee Byung-hwa, a researcher at Shinhan Investment Corp., explained, "Techfin Ratings will start the accounts receivable securitization business after obtaining the main license," adding, "It is possible to estimate performance and conduct financial analysis using the data held by Duzon Bizon." He further stated, "They will carry out a business supporting the acquisition and early monetization of corporate accounts receivable for mid-sized and small enterprises," and "They can sell, mediate, and broker loan-type financial products as B2B."
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