KB Kookmin Bank to Strengthen Consumer Protection System Across Entire Lending Process

Utilizing the Consumer Protection Quality Index
Establishing a Customized Management System for Financially Vulnerable Groups

KB Kookmin Bank announced on April 14 that it will strengthen its internal management standards for the entire lending process to a higher level than before in order to enhance financial consumer protection.

View of the new KB Kookmin Bank building in Yeouido, Seoul. Kookmin Bank

This initiative aims to more thoroughly reflect customers' repayment capacities and transaction suitability by: ▲ strengthening monitoring using the Consumer Protection Quality Index (CPQI), ▲ enhancing management of vulnerable borrower groups, and ▲ revamping the pre-lending consumer protection checklist.

First, within this month, major credit indicators such as the status of new loans for the elderly and young adults just entering society, as well as changes in delinquency rates, will be added to the CPQI to strengthen monitoring for abnormal signs. The CPQI is a data-driven management index that checks the level of consumer protection and supports prompt response when any abnormality is detected.

In addition, loan management for financially vulnerable groups will also be strengthened. KB Kookmin Bank plans to expand verification of borrowers' actual repayment capacity, rather than focusing only on collateral, in order to prevent excessive borrowing and operate a customized management system tailored to customer characteristics.

Furthermore, during the pre-consultation stage for consumer protection, the checklist will be revised to reinforce the pre-screening function. The bank will improve related processes so that when the headquarters department establishes loan products, interest rate, and fee policies, all matters that should be sufficiently considered from the customer's perspective are mandatorily checked in advance.

A representative from KB Kookmin Bank stated, "It is important to strike a balance between strengthening consumer protection and expanding inclusive finance," adding, "We will continue to do our utmost to ensure that substantial consumer protection is achieved from the customer's point of view."

Meanwhile, KB Financial Group has been continuously strengthening its consumer protection policies with a focus on prevention, such as establishing a Consumer Protection Committee within the boards of major affiliates and prioritizing consumer rights, in commemoration of the fifth anniversary of the implementation of the Financial Consumer Protection Act last month.

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