Korea Credit Data, Promoting Establishment of Bank Specialized for Small Business Owners

Comprehensive Data-Based Financing Using Small Business Operating Status

Korea Credit Data announced on the 5th that it is promoting the establishment of a bank specialized for small business owners. The purpose is to help small business owners and sole proprietors receive fair evaluations and secure timely funding through three-dimensional data reflecting actual business conditions.

Korea Credit Data provides various services and digital infrastructure such as management, credit information, information provision, and payment centered on the management service 'Cash Note,' which has been introduced to 1.3 million business sites, to 2 million small business owners and self-employed nationwide. Kim Dong-ho, CEO of Korea Credit Data, analyzed, "Access to finance for small business owners is still limited because comprehensive data tailored to their financial situation is not utilized in financial services." Kim added, "The small business specialized bank promoted by Korea Credit Data aims to grasp business performance in real time as closely as possible by reflecting business capabilities three-dimensionally, including metrics such as repeat customer rate, average spending per customer, and hourly sales distribution."

Korea Credit Data has been striving to provide optimized financial services for small business owners. Together with Kakao Bank, SGI Seoul Guarantee, KB Kookmin Bank, and others, it established the sole proprietorship credit rating agency 'Korea Credit Service (KCS),' which received approval from the Financial Services Commission in 2022. KCS develops credit rating models based on sole proprietors' business information and supplies them to multiple financial institutions.

Korea Credit Data stated that it aims to increase credit supply to small business owners through the specialized bank. CEO Kim said, "Since low- to medium-credit sole proprietors are not major customers of existing financial institutions, there are limitations in providing tailored services to them," adding, "To strengthen financial services for small business owners, there is a need to establish a differentiated specialized bank that offers customized finance to small business owners."

The small business specialized bank promoted by Korea Credit Data plans to achieve high levels of risk management and financial stability through cooperation with sizable financial companies and others. The timing and method of the licensing application will be decided through future discussions.

CEO Kim said, "We are preparing ways for small business owners to receive greater support relative to asset size by not focusing solely on lending money directly but by connecting various financial institutions and policy agencies well," and added, "Keeping in mind that the essence of the financial industry is risk management, we are proceeding with the formation of a consortium to sufficiently secure the business plan and soundness."

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