Input 2021.02.02 15:27
Yoon Ho-young, CEO of Kakao Bank, held a press conference on the 2nd in 2021, saying, “Kakao Bank is taking its first step in corporate finance this year.” “In the nature of Internet banks, loans to large corporations are limited, whereas self-employed loans among corporate loans are Kakao Bank. “I think I should try it.”
To this end, Kakao Bank is striving to upgrade its credit rating system (CSS). This is because Kakao Bank’s own self-evaluation factor is needed to execute loans with better conditions such as interest rates and limits to individual business owners who are neglected by commercial banks due to their relatively lack of financial history.
An official at Kakao Bank said, “Although it is a personal credit loan, we will be able to use the data accumulated from the private business loan loans that have been in place since May 2019.” “I explained. If Kakao Pay’s proprietary data accumulated based on the operation of QR payment and sales management services for small business owners, etc., it is expected that Kakao Bank will be able to offer competitive products in the corporate finance sector.
With Kakao Bank’s announcement to advance into corporate finance, there is a possibility that the competition for loans by private businesses between Big Tech and Internet banks will intensify. Already in December of last year, Naver Financial has been operating the’Mirae Asset Capital Smart Store Business Loan’, a loan product for SME (Small and Medium Business) businesses. Naver Financial is giving out loans at an average interest rate of about 5.5% per year by reflecting the activity data in the smart store, such as real-time sales, return rate, percentage of regular customers, and speed of responding to customer inquiries, to alternative credit ratings to businesses in its smart store stores. Naver Financial CEO Choi In-hyuk said, “SME loans will start with smart stores first, and if it goes well, we will expand to businesses using other platforms.”
In addition, Toss Bank, which is scheduled to be launched this year, has announced the supply of heavy interest rate loans to individual businesses for central credit, and K Bank, like Kakao Bank, is developing loan products for individual businesses through agreements with the Ministry of SMEs and Shinbo.
Regarding the criticism of focusing on high-credit loans rather than medium-interest loans since its inception, he said, “Kakao Bank has grown faster than expected.” “There are many promises to supply medium-interest-rate loans of about KRW 1 trillion per year, but (high-credit loans are rapidly Because of the increase), it did not meet market expectations when viewed by weight.
He also expressed his intention to challenge himself in the my data business soon. CEO Yoon said, “I couldn’t because I wasn’t eligible for the application (in the first time targeting an existing business), but in the second time I will apply for a license. And will provide differentiated services.”
Regarding IPO (public disclosure), “It is difficult in the first half of this year, and when it is ready, we will discuss the timing with the organizer in consideration of the market situation afterwards,” and “not only disclose the size and valuation, but also talk about the stock price or market cap traded in the OTC market. I can’t say anything about it,” he said. CEO Yoon also said, “This year, we will focus on strengthening our internal competencies.”
Kakao Bank posted provisional net income of 1136 billion won last year. Annual net income of 13.7 billion won was 8.3 times higher than a year ago, when it recorded the first surplus. Total assets amounted to 26.6 trillion won, an increase of 3,926.2 billion won from the previous year. It is analyzed that earnings were driven by the growth of credit loans, the application service for opening a stock account, credit card recruitment agency, and linked loans.