Three Internet-Only Banks Surpass First-Quarter Credit Loan Targets for Mid- and Low-Credit Borrowers

The three internet-only banks?KakaoBank, KBank, and TossBank?each exceeded their targets for supplying credit loans to mid- and low-credit borrowers in the first quarter of this year.

As of the end of the first quarter this year, KakaoBank’s share of credit loans to mid- and low-credit borrowers (based on outstanding balance) reached a record high of 32.8%. The proportion of new credit loans extended to this group was 33.7%, surpassing the target of 30% not only in terms of outstanding balance but also in new loan originations. The average loan balance during the same period was 4.9 trillion won.

KBank recorded the highest share among internet banks, with 35% of its outstanding credit loans extended to mid- and low-credit borrowers. In the first quarter of this year, KBank supplied 254.4 billion won in new credit loans to this group, bringing the cumulative total to 7.4203 trillion won. However, in terms of new loan originations, the proportion was 26.3%. KBank explained, “The average balance reflects a higher ratio when loans are supplied earlier in the period, and the lower ratios in February and March?when the share of mid- and low-credit borrowers was higher?compared to January, account for this result.”

TossBank reported a 34.3% share based on outstanding balance, and 30.4% based on new loan originations. By the end of the first quarter this year, TossBank had supplied loans totaling 9 trillion won to 328,000 mid- and low-credit borrowers.