Woori Bank Opens Corporate Fraudulent Loan Detection System

[Asia Economy Reporter Kim Hyo-jin] Woori Bank announced on the 21st that it has launched a ‘Corporate Fraudulent Loan Detection System’ utilizing big data. The Corporate Fraudulent Loan Detection System analyzes corporate behavior patterns during the credit screening process to determine the presence of fraudulent loans.

In the banking sector, frequent occurrences of non-performing loans due to document forgery, false sales, and misuse of funds by corporate borrowers have been reported. Consequently, the need to establish a system that can prevent fraudulent loans based on various corporate information during the corporate credit screening process has been raised.

To this end, Woori Bank built an integrated corporate database (DB) linked with the bank’s corporate diagnosis system, incorporating corporate information held by the bank and data provided by credit rating agencies. It analyzes 15 corporate behavior patterns across six areas including loans and deposits, credit provision, and foreign exchange, assessing the risk level of fraudulent loans in three stages: high, medium, and low, and applies this in the credit screening process.

For example, it notifies credit officers of abnormal signs such as ▲ repeated business openings and closures ▲ frequent changes and history of the CEO ▲ misuse of loan funds ▲ false sales.

A Woori Bank official stated, “By reflecting new fraudulent loan patterns in the system, conducting periodic updates, and monitoring at each credit stage, we expect to prevent fraud and fraudulent loans, thereby enhancing the bank’s profitability and reputation risk management.”

This content was produced with the assistance of AI translation services.