Woori Bank has expressed its intention to participate in the internet-only bank consortium led by Korea Credit Data (KCD). As the competition to establish the fourth internet-only bank turns into a four-way race, competition among operators over the participation of major commercial banks is intensifying.
According to KCD on the 14th, Woori Bank recently submitted a Letter of Intent (LOI) to the KCD consortium. Woori Bank is also a major shareholder holding 12.60% of the existing internet-only bank K Bank.
KCD was selected as a beneficiary of Woori Bank's startup incubation program, 'WeBe Fintech Lab' (now Woori Financial Dino Lab), shortly after its founding in 2016. Having been supported by Woori Bank from the start, KCD has grown into a unicorn company and is now jointly promoting the establishment of Korea's first internet-only bank targeting small business owners together with Woori Bank.
While pushing for the establishment of the fourth internet-only bank, KCD emphasizes that it is an operator providing stable financial services to small business owners. Through its management service 'Cash Note,' KCD has provided specialized services to 1.4 million small business owners nationwide. In 2022, KCD also established Korea Credit Information, the country's first dedicated credit rating agency for sole proprietors, together with Kakao Bank, SGI Seoul Guarantee, and KB Kookmin Bank.
The greatest competitive advantage of the KCD consortium is its proprietary credit evaluation service for sole proprietors. Korea Credit Information, established by KCD, provides credit evaluation models to numerous financial institutions based on the business information of sole proprietors. As the only dedicated sole proprietor credit rating agency in Korea, Korea Credit Information attracted new investments from IBK Industrial Bank and DGB Daegu Bank in March, receiving market recognition for the excellence of its small business evaluation models.
Kim Dong-ho, CEO of KCD, said, “KCD wants to create the first bank for small business owners through the internet-only bank license together with Woori Bank,” adding, “The KCD consortium will develop innovative financial services that allow small business owners and sole proprietors to receive fair evaluations and timely funding based on multidimensional data.”
Meanwhile, the establishment of the fourth internet-only bank is unfolding as a fierce competition among four consortia: KCD Bank, Duzon Bank, Soso Bank, and U Bank. Accordingly, the race to attract capital by recruiting commercial banks is also intense. Shinhan Bank is reportedly reviewing whether to participate in the Duzon Bank consortium led by Duzon Bizon. Currently, Shinhan Bank is the only one among the four major commercial banks that does not hold shares in any internet-only bank.
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