Shinhan Card Obtains Preliminary CB License for Individual Entrepreneurs... First in the Financial Sector

Recognized for Differentiated Credit Evaluation Capability Applying AI Algorithms to Big Data

[Asia Economy Reporter Ki Ha-young] Shinhan Card has become the first financial institution to obtain a preliminary license for credit evaluation (CB) of individual business owners.

Shinhan Card announced on the 14th that it received the preliminary license for individual business owner CB from the Financial Services Commission the day before. This preliminary license is the first case of a financial company obtaining CB approval for individual business owners since the revised Credit Information Act came into effect in August last year. If this decision is confirmed in the final approval review, Shinhan Card will operate the individual business owner credit evaluation business using payment information from its affiliated merchants.

Since being selected as the first innovative financial business by the Financial Services Commission in April 2019, Shinhan Card has laid the foundation by launching its own brand called MyCredit in October of the same year and providing credit evaluation services to external financial companies such as internet banks.

With this license acquisition as a turning point, the credit evaluation business is expected to be activated in earnest. In addition to data accumulated based on individual business owners and affiliated merchants, Shinhan Card plans to focus its business capabilities on developing innovative services that enhance financial accessibility for individual business owners who have not been properly evaluated through personal credit, by collecting heterogeneous data from external institutions and utilizing artificial intelligence (AI) algorithms.

In particular, Shinhan Card aims to gradually increase its market influence by linking specialized services integrated with card business, such as loan brokerage and management diagnosis, in addition to financial products exclusively for business owners.

A Shinhan Card official said, "Obtaining the preliminary license for individual business owner CB, the first in the financial sector, is highly significant for the card industry as it breaks down the boundaries of the card business and creates new growth opportunities based on innovative finance."

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