Platform and Data Giants Join Forces... Shinhan Card Develops Alternative Credit Scoring Model with Toss

Promoting Services for Financially Underserved Groups Using Big Data Capabilities

Shinhan Card has partnered with Toss. Based on their respective data and platform competitiveness, they plan to develop sophisticated credit evaluation models and financial services for financially marginalized groups.

On the 9th, Shinhan Card announced that it signed a "Business Agreement for the Development of Credit Evaluation Models and Financial Services for Joint Data Projects" with Toss the previous day at its headquarters in Euljiro, Jung-gu, Seoul.

Through this collaboration, both companies will develop precise alternative evaluation indicators and specialized financial products and services to enable individuals and sole proprietors, including financially marginalized groups such as young adults starting their careers and small business owners, to access various financial services. They plan to utilize Shinhan Card’s big data capabilities, including consumer behavior pattern information and digital log data, along with Toss’s data and platform competitiveness.

The alternative evaluation indicators developed will be used for loan products available to individuals or sole proprietors. Additionally, they will jointly develop credit management services for sole proprietors and apply them to Toss to make it convenient for small business owners to use.

They will also promote data business targeting private companies. Based on statistical consumer information, they plan to derive insights into markets, competitive environments, customers, and customer journeys, and provide these insights to companies in a subscription format.

Previously, in September 2021, Shinhan Card became the first financial company to obtain a license for credit information services for sole proprietors and is currently operating the sole proprietor credit evaluation (CB) business called "MyCredit." They have developed sole proprietor CB, sales estimation, and business closure indices, and are providing related data to financial and public institutions.

A Shinhan Card official stated, "With 31 million customers, Shinhan Card’s big data and CB business capabilities, combined with Toss’s data from 26 million customers, will enable more detailed financial services for financially marginalized groups, including self-employed individuals and small business owners." He added, "We will continue to strive to fulfill the role of 'Invisible Finance,' Shinhan Financial Group’s philosophy of mutual growth, by providing data-based support services ranging from startup support for small business owners to marketing and sales growth."

Moon Dong-kwon, President of Shinhan Card (left), is taking a commemorative photo with Lee Seung-geon, CEO of Toss, after signing a business agreement at the Shinhan Card headquarters in Jung-gu, Seoul on the 8th. (Photo by Shinhan Card)

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