KakaoBank Doubles Loans to Medium Credit Borrowers After Applying New Evaluation Model

[Asia Economy Reporter Kwangho Lee] Since KakaoBank applied its new credit scoring model (CSS), the loan supply provided to medium-credit customers with credit scores of 820 or below has approximately doubled.

On the 18th, KakaoBank announced that since implementing the new CSS on the 9th, the loan supply provided to customers with credit scores of 820 or below, based on Korea Credit Bureau (KCB) data, has doubled.

The amount of medium-credit loans supplied increased from 14.7 billion KRW during the period of the 1st to the 8th to 29.3 billion KRW from the 9th to the 16th after the new CSS was applied, marking a 99.31% rise. The number of cases increased by 74.3%.

Within KakaoBank’s total unsecured credit loans, the proportion supplied to customers with credit scores of 820 or below expanded from 15.1% to 25.9% during the same period. KakaoBank plans to launch a credit loan product exclusively for medium-credit customers in August.

A company representative stated, "We expect the supply amount and balance of medium-credit loans to increase further in the second half of the year," adding, "We will continue to strive to offer more competitive interest rates and loan limits to low- and medium-credit customers."

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