Utilizing Driving and Yellow Umbrella Mutual Aid Information... Woori Bank Enhances Alternative Credit Evaluation for Vulnerable Borrowers

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[Asia Economy Reporter Minwoo Lee] Woori Bank has improved its alternative credit scoring model to support vulnerable borrowers who lack sufficient financial information.

Woori Bank announced on the 13th that it will gradually apply this advanced alternative credit scoring model to loan screening starting this month. Alternative information refers to data that can complement existing financial information to enable more precise evaluation of customers with insufficient financial data. This includes telecommunications information, micro-payment information, automatic transfer information, distribution information, Yellow Umbrella Mutual Aid subscription information, and merchant information.

Woori Bank is the first in the banking sector to enhance the discriminative power of its alternative credit scoring model by applying driver information from Tmap Mobility using machine learning methods. It is expected to refine the screening of customers using mid-interest rate products such as the Saehopeum Holssi loan and to expand the pool of eligible borrowers by additionally selecting high-quality customers.

Additionally, a dedicated model for vulnerable borrowers will be developed. Previously, young workers with low annual income were relatively rated lower, but with the dedicated model for vulnerable borrowers, customers possessing positive alternative information will be able to receive additional credit limits.

Meanwhile, Yellow Umbrella Mutual Aid subscription information and other data will be additionally introduced into the credit scoring model for individual business owners. The bank plans to actively support small business financing through products such as Naver Smart Place loans.

A Woori Bank official stated, "By advancing the alternative credit scoring model, not only will risk management through precise credit evaluation improve, but also quality financial services will be further expanded for our customers, including providing credit limits to actual loan demanders such as vulnerable borrowers."

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