K-Bank Develops Credit Evaluation Model Reflecting Customer Characteristics of Loan Comparison Platform

K Bank announced on the 3rd that it has introduced an advanced credit evaluation model, ‘K Bank CSS 3.0’.

CSS 3.0 focuses on reflecting the characteristics of customers using loan comparison platforms, which have recently become a financial trend, and strengthening the competitiveness of 100% non-face-to-face real estate secured loans for individual business owners. It also applies a specialized model for low- to mid-credit borrowers to enhance loan accessibility as part of its commitment to inclusive finance.

First, in line with the trend of increasing financial consumers using loan comparison platforms, K Bank became the first in the banking sector to incorporate data from customers entering through loan comparison platforms into the CSS. Loan comparison platforms have high accessibility and tend to be used by customers with diverse characteristics such as multiple debtors, individual business owners, and thin filers.

The accuracy of credit evaluation has been improved for multiple debtors and individual business owners who are sensitive to economic fluctuations, as well as thin filers who are difficult to assess due to lack of financial history.

K Bank introduced a dedicated CSS optimized for the 100% non-face-to-face real estate secured loan product for individual business owners, which was first launched in the banking sector, further enhancing the product’s competitiveness.

Previously, the same CSS used for household apartment mortgage loans was utilized, but based on operational data and market analysis over the past six months, a new evaluation model tailored to the characteristics of individual business owners was newly established. Following the expansion of the product portfolio to include subordinate refinancing loans in March, this CSS introduction is expected to create a synergistic effect.

Lastly, a specialized model was introduced to expand loan opportunities for low- to mid-credit borrowers (those with KCB credit scores in the lower 50% or below) and to increase the discriminative power of credit evaluation. Based on this, inclusive finance is strengthened while maintaining soundness.

A K Bank official said, “Starting with CSS focused on 100% non-face-to-face financial innovation at its launch in 2017, followed by a model that strengthened inclusion of low- to mid-credit borrowers in 2022, we have now introduced the new CSS 3.0. We will continue to innovate CSS to expand inclusive finance and enhance soundness and product competitiveness.”