Kakao Pay Provides Alternative Credit Evaluation Information for PLCC Issuance Screening

[Asia Economy Reporter Kiho Sung] Kakao Pay will provide alternative credit evaluation information to Samsung Card.

Kakao Pay announced on the 27th that its "alternative credit evaluation service for credit card issuance screening" was newly designated after the 8th Designated Agent Review Committee of the Financial Services Commission on the 17th.

As a result, when issuing the co-branded private label credit card (PLCC) 'Kakao Pay Credit Card' jointly created by Kakao Pay and Samsung Card, the issuing company Samsung Card will combine its own information with the alternative credit evaluation information provided by Kakao Pay to determine the usage limit and issuance eligibility.

Kakao Pay has continuously worked on building an alternative credit evaluation model by analyzing non-financial and unstructured data generated from various internal services.

First, the model was constructed based on Kakao Pay services such as payments and remittances and user behavior data, and by combining the latest technologies, a multifaceted evaluation was conducted to develop the 'Kakao Pay Score.' Furthermore, by combining the reliability of credit information provided by credit rating agencies and the discriminative power of alternative data, Kakao Pay established its own alternative credit evaluation system called K-CSS.

With Kakao Pay's selection as a designated agent this time, it is expected that those with insufficient financial history, such as young adults entering society, will be able to use financial services reasonably by utilizing platform usage information that existing financial companies do not possess. This is also expected to contribute to the accumulation and learning of financial history for those lacking it, creating a virtuous cycle that allows them to use better financial services under improved conditions in the future.

Kakao Pay stated, "As a nationwide platform with 37 million users, especially among those in their 20s and 30s who have a high proportion of insufficient financial history, over 93.2% of the total population is subscribed, enabling us to provide alternative credit evaluation services more effectively than any other operator." They added, "We can assess the creditworthiness of students and young adults with insufficient financial history who find it difficult to receive financial services due to lack of financial transaction information, which will help expand inclusive finance."

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