Kakao Bank (CEO Yoon Ho-young) announced on February 2 that it will expand the scale of loans and launch new products for low and mid-sized creditors.
Ho-young Yoon, CEO of Kakao Bank, said at a press conference held online on the 2nd, “All products and services we offer provide the best convenience and competitive benefits, and we want to remind customers of Kakao Bank first when they need finance.” We will expand financial inclusion in the loan product sector.”
Kakao Bank plans to increase its supply this year to expand loans to mid-interest and mid-to-low credit. To this end, since January, Kakao Bank has been implementing a loan plan to curb the increase in loans to high creditors. In January, the maximum limit for high credit credit loans was reduced from 150 million won to 100 million won. In addition, from the 2nd, the minimum interest rate for credit loan products intended for high creditors will be raised by 0.34%p. Instead, Kakao Bank decided to lower the interest rate of’Central Credit Loan’, a private medium-rate loan product based on its own credit, by up to 0.60 percentage points (p). It is to curb loans for high creditors and expand loans for low and medium credits.
In the second half of the year, the company plans to expand the supply of loans to mid- and low-credit credit. Kakao Bank offers products exclusively for low and mid-credit users based on its own credit. The amount of loans supplied through this product is currently undecided, but is expected to be larger than the supply of existing mid-interest rate loan products.
Kakao Bank has provided an average of 1.2 trillion won of medium-interest loans (including interstitial and private medium-interest loans) from 2019 to last year. Representative Yoon Ho-young said, “The specific loan size for mid- and low-mid-interest credits may vary depending on financial market conditions, soundness and risk management status, but compared to 2020, the proportion of loans for mid- and low-credit credits will be dramatically increased in 2021.”
Kakao Bank is developing a new credit rating system (CSS) for low to mid-sized creditors and thin filers. We are developing and upgrading CSS by combining financial and non-financial data possessed by the Kakao community with the data and know-how accumulated from the experience of operating inter-dial loans and private mid-rate loans over the past three years.
Kakao Bank also introduces corporate loan products. Together with the Ministry of SMEs and Startups and the Korea Credit Guarantee Foundation, it is developing a loan product for individual business owners in the second half of the year.
Kakao Bank will further strengthen its platform business this year. It plans to expand affiliated companies in linked loans, securities account opening services, and credit card recruitment agencies, and 26-share savings linked to partnerships will cooperate with more diverse partners.
In addition, it will expand its capabilities in the non-face-to-face technology sector. We are advancing our non-face-to-face technology capabilities, such as photographing and recognizing identification for real name verification, automatic recognition of non-face-to-face documents, and linking the review and evaluation process.
Kakao Bank Financial Technology Research Institute, which was designated as an innovative financial service by the government last year, will begin its activities this year. The research institute plans to explore opportunities for collaboration with fintech and techfin companies in the environment where network separation is applied, and focus on the development of artificial intelligence, security, and non-face-to-face technologies.
CEO Yoon Ho-young said, “With Corona 19, digital contacts are becoming more common. Kakao Bank will connect finance and daily life more conveniently in the digital contact era, and increase the speed and breadth of innovation in areas where innovation has not been achieved.” said.
Meanwhile, Kakao Bank’s provisional net income in 2020 recorded 113.6 billion won. The interest sector’s profits increased due to the increase in loan assets, and commission revenues from the even growth of securities account opening application services, credit card recruitment agencies, and linked loans surpassed ATM costs. . The commission division’s net income is 6.8 billion won and net interest income is 40.8 billion won.
The net interest margin (NIM) was 1.68% and the delinquency rate was 0.22%. Total assets were 26.65 trillion won, an increase of 3,926.2 billion won from the previous year. Capital increased from 1.6787 trillion won at the end of the previous year to 2,797 trillion won due to the impact of a 1 trillion won increase in capital.
Reporter Kang Jin-gyu [email protected]
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