Gwangju Bank and Toss Bank Sign MOU to Launch Joint Loan Service

Gwangju Bank recently announced on the 8th that it signed a Memorandum of Understanding (MOU) at the Toss Bank headquarters in Seoul to launch the ‘Gwangju Bank-Toss Bank Joint Loan Service,’ which has been designated as an innovative financial service by the Financial Services Commission.

Through this agreement, both banks have agreed to mutually cooperate in developing products aimed at protecting financial consumers and enhancing benefits. The combination of Gwangju Bank’s accumulated data and operational know-how from managing non-face-to-face personal credit loans and Toss Bank’s credit evaluation model utilizing financial and non-financial data is expected to offer customers more precise loan screening, providing reasonable loan limits and interest rates.

The ongoing joint loan service is a personal credit loan product where consumers can apply for a loan on a single platform (Toss Bank app). After separate loan screenings, the loan limit and interest rate are jointly determined, and the loan is executed at once through the Toss Bank app. The loan limit is provided jointly at a 50:50 ratio.

The service is scheduled for official launch in the third quarter of this year. Once the product is released, Gwangju Bank plans to expand its network beyond the regional sales network by leveraging Toss Bank’s platform, securing a high-quality loan portfolio. Toss Bank, in turn, will continuously supply stable loans by utilizing Gwangju Bank’s loan supply capacity, thereby expanding the growth foundation. Both companies aim to achieve a ‘win-win’ outcome.

In particular, this joint loan marks the first case of entrusted loan operations between banks, which is expected not only to change the oligopolistic structure centered on commercial banks but also to create a ‘Big Blur’ across the banking sector.

Ko Byung-il, President of Gwangju Bank, said, “We are very pleased to have signed a close agreement for the launch of the product following the designation as an innovative financial service after the tireless efforts of both banks.” He added, “We will strive to develop not only joint loan products but also more innovative financial services so that more customers can use convenient and reasonable loan services.”