KakaoBank-KakaoPay Data Collaboration to Strengthen Mid-Interest and Mid-Credit Borrower Loans

[Asia Economy Reporter Kiho Sung] KakaoBank and KakaoPay are collaborating on data to develop and advance their respective credit evaluation models.

On the 17th, KakaoBank and KakaoPay announced that they plan to receive necessary data from each other, analyze it, and reflect it in their actual credit evaluation models.

KakaoPay will provide payment and customer behavior data generated within the KakaoPay service to KakaoBank, while KakaoBank will provide loan and deposit data to KakaoPay. Information related to each company's partners will not be shared at all.

Both companies expect that this data collaboration will allow them to expand credit services for customers.

KakaoBank will utilize KakaoPay data to enhance its current credit evaluation model and develop a credit evaluation model that can offer reasonable loan interest rates and limits to customers with insufficient financial history, such as young adults entering society, and medium-credit customers. The new credit evaluation model, reflecting data analysis with KakaoPay, will be applied to KakaoBank’s mid-interest, medium-credit products to be launched in the second half of this year.

KakaoPay will combine KakaoBank’s data with its alternative credit evaluation model prepared for customers with insufficient financial history to complete a more accurate and sophisticated evaluation model. The alternative credit evaluation model will be first applied to KakaoPay’s postpaid payment service, and KakaoPay plans to pursue cooperation such as data exchange with other financial companies to provide more innovative and advanced services.

This data collaboration will be conducted in accordance with relevant laws by pseudonymizing personal information, deleting some or all parts so that specific individuals cannot be identified. The pseudonymized information provided by each company will not be directly delivered to the other but will be combined through a third-party specialized institution.

Each company delivers the pseudonymized information to the Financial Security Institute, which combines the information received from both companies. After an appropriateness review, the Financial Security Institute provides the combined data to KakaoBank and KakaoPay.

Since the second half of last year, the two companies have agreed on the potential for developing and advancing credit evaluation models through the combination of financial and non-financial information and have been discussing practical measures.

KakaoBank and KakaoPay plan to expand data collaboration to major Kakao affiliates starting with this data cooperation.

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