Naver Pay Develops Alternative Credit Scoring Model 'Naver Pay Score'

Introduction of Credit Loans at K Bank and SBI Savings Bank

Naver Pay announced on the 21st that it has developed an alternative credit scoring model, 'Naver Pay Score,' using non-financial data in collaboration with NICE Information Service.

Naver Pay Score is an alternative credit scoring model that utilizes various non-financial data from Naver Pay. It was developed by combining 73 million pseudonymized data records from Naver Pay and NICE Information Service. Data used include Naver Pay usage history, MyData-based asset data, and transaction amounts from Smart Store and Place.

With the introduction of this model, financial companies can conduct more precise evaluations of loan consumers. K Bank and SBI Savings Bank, which applied this model to their credit loan products, are expected to increase new loans to thin filers (Thin Filer: individuals with insufficient financial history). They can also offer favorable conditions such as interest rate and limit benefits to existing fat filers (Fat Filer: high-quality users). Thanks to the advanced internal screening strategy, loan soundness can also be maintained.

In actual simulations, the discriminatory power indicator of the credit scoring model improved by 13.57 percentage points compared to the existing evaluation model. About 33% of users were found to be eligible for benefits such as preferential interest rates and limits.

Previously, the alternative credit scoring model developed by the two companies in 2020 was evaluated as lowering the loan barriers for online businesses. Naver Pay Score has been newly created as a model that evaluates not only businesses but also individuals.

A Naver Pay representative stated, “Starting with K Bank and SBI Savings Bank, we hope that more financial companies will utilize Naver Pay Score to provide benefits to a greater number of users.”

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