K Bank announced on the 28th that it will collaborate with Samsung Card and Shinhan Card to utilize alternative credit information for individual business owners in its loan screening strategy. This is to further strengthen the credit evaluation model (CSS), including the loan screening and management system, to expand the individual business owner and small and medium-sized enterprise (SOHO-SME) market that K Bank is targeting.
Samsung Card and Shinhan Card possess alternative credit information that can evaluate the creditworthiness of individual business owners by using card merchant information.
K Bank plans to utilize a total of 26 million cases of alternative credit information from both card companies in its loan screening strategy. The strength lies in being able to analyze and predict the sustainability and stability of individual business owners' operations more precisely.
For example, even if an individual business owner has a short business history or a low personal credit score, if they operate a sound business location, their loan opportunities and limits can be expanded. It is also expected to optimize loan limits and conditions based on the business stability and expected business duration of the individual business owner.
At the same time, by advancing loan screening and management capabilities, the goal is to reduce delinquency rates and diversify the loan portfolio stably. The strategy is to strengthen the SOHO-SME market as a driving force for sustainable growth.
Yang Young-tae, Head of Risk Management at K Bank, said, "We will continue to strengthen the foundational capabilities for expanding the SOHO-SME market by utilizing alternative credit information from various fields. We will strive to achieve both goals of expanding loan supply and stable management."
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