KB Kookmin Card Introduces Big Data-Based Credit Evaluation Specialized for Individual Entrepreneurs

KB Kookmin Card announced on the 6th that it will launch 'Credit Tree,' a big data-based credit evaluation service specialized for individual business owners, utilizing merchant card sales data.

[Asia Economy Reporter Oh Hyung-gil] KB Kookmin Card announced on the 6th that it will launch ‘Credit Tree,’ a big data-based credit evaluation service specialized for individual business owners using merchant card sales data.

This is a customized credit evaluation service for individual business owners that enables small business owners and self-employed individuals, who previously had limited access to institutional financial companies due to lack of credit evaluation information, to receive more precise credit assessments.

After being designated as an innovative financial service authorized to conduct credit inquiry services for individual business owners by the Financial Services Commission in November last year, KB Kookmin Card signed a business agreement with Korea Enterprise Data and has been collaborating to launch a credit evaluation model and related services specialized for individual business owners.

In addition to existing financial transaction records of individual business owners, the service utilizes various types of data for credit evaluation, including corporate credit information, sales performance based on card payment data, commercial district competitiveness, business viability information, real estate and non-financial alternative information, and also incorporates external data such as personal and SOHO (Small Office/Home Office) credit information from partner financial institutions.

Furthermore, based on high-quality individual business owner asset information from KB Financial Group affiliates such as KB Kookmin Bank and KB Securities, a group performance model was additionally developed, and an integrated group credit evaluation system for individual business owners was implemented. When evaluating individual business owners rated below grade 7 by existing credit rating agencies using this service, more than half were upgraded to mid-level grades (4 to 6), and about 8% were re-evaluated to higher grades (1 to 3).

A KB Kookmin Card official stated, "We will provide a wide range of financial services to many small business owners and self-employed individuals who previously had difficulty using institutional financial companies," adding, "We expect this to help enhance the business competitiveness of individual business owners."

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