Interest Savings and Tax Benefits
2.1 Million Users See 21-Point Credit Score Increase Over Two Years
Kakao Pay announced on the 14th that it has become the first in Korea to surpass 20 million subscribers for MyData (Personal Credit Information Management Service).
Kakao Pay explained that this achievement came three years after starting its MyData business. This means that about 3 out of 5 people aged 19 to 64, the working-age population in South Korea, are using Kakao Pay's asset management services.
Kakao Pay provides users with tangible benefits through various data analyses and personalized recommendation services. Notably, the 'Credit Score Improvement' service has helped approximately 2.1 million users increase their credit scores by an average of 21 points from 2023 to last year.
Based on data from Kakao Pay services such as Kakao Pay Money, the industry's largest prepaid recharge fund not included in traditional credit evaluations, Kakao Pay is developing an alternative credit evaluation model. This model aims to assess the creditworthiness of students and young adults who have relatively limited financial histories and have found it difficult to access financial services.
Through the 'Loan Refinancing' service utilizing MyData, about 20,000 users lowered their loan interest rates by an average of 1.52 percentage points over two years on loans totaling 1.134 trillion KRW. This resulted in an average annual interest savings of 900,000 KRW per user and a total annual interest reduction of 17.2 billion KRW.
The 'Year-End Tax Settlement Preview' service has calculated expected refund and payment amounts for more than 500,000 users annually. It provides tailored tax-saving solutions by guiding users on missing information and helping them receive the maximum deduction limits.
Additionally, Kakao Pay offers financial fraud prevention features through MyData. By connecting MyData with the API of 'The Cheat,' a social venture specializing in financial fraud prevention, Kakao Pay provides users with the 'Account Keeper Service.'
Kakao Pay links MyData to advanced asset management services. 'Shared Asset Management' for couples and families is a flagship service based on MyData.
'Financial Secretary' analyzes financial statuses such as lease loan maturity, payday, and savings, providing real-time personalized financial information.
A Kakao Pay representative stated, "We will become a financial platform that contributes to the expansion of inclusive finance, including the advancement of alternative credit evaluation using data."
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