Shinhan Card and PFCT Become First Korean Financial Firms to Publish Paper at World's Largest AI Conference

Honor of Paper Publication at 'ICLR 2025'
Development of Loan Risk Management Model

Shinhan Card announced on April 29 that a paper on its "AI technology-based loan risk management model," jointly developed with AI technology finance company PFCT, has been published at the International Conference on Learning Representations (ICLR 2025). ICLR is considered the world's most prestigious AI academic conference.

Shinhan Card Headquarters, Euljiro, Jung-gu, Seoul. Shinhan Card

The two companies conducted research on multitasking AI models. Multitasking AI models are used to control personal credit loan risk and optimize interest rates. The paper discusses the impact of customers' interest rate sensitivity on risk manifestation, as well as how to derive the optimal balance between business operations and risk management.

Since last year, the two companies have formed a joint research team to study all aspects of decision-making support systems for credit loans, including loan approval criteria, interest rate policies, and marketing strategies. Through this collaboration, they are developing an AI-integrated risk management model that enables more precise evaluation of credit risk for each customer, as well as proactive risk monitoring and management operations.

Shinhan Card plans to apply the new risk management model to offer optimal loan conditions tailored to each customer. The company also intends to continue actively adopting AI technologies in its financial services to further strengthen its digital competitiveness.

A Shinhan Card representative said, "We are very pleased to be the first financial institution in Korea to have a paper published at ICLR. We expect that, based on our newly established risk management model, we will be able to further advance our loan screening process and improve our revenue model."

Lee Suhwan, CEO of PFCT, said, "We are very pleased that our research efforts to address risks faced by financial institutions in the field using AI technology have been recognized at the world's leading AI conference."

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