Kakao Bank, an internet-specialized bank that was launched in July 2017 and has reached its fifth year this year, has proposed three goals for 2021. Ho-young Yoon, CEO of Kakao Bank, expressed his determination to create Kakao Bank First by dramatically supplying medium and low credit loans at mid-interest rates, enhancing technological capabilities suitable for the digital contact era, and establishing an IPO.
At the 2021 Kakao Bank Strategic Goals press conference held digitally on the 2nd, Yun Ho-young said, “As of the end of December 2020, the number of users was 15.4 million and the number of account opening customers was 13.6 million, an increase of 3 million from the previous year. Kakao Bank mini-users are also 600,000,” he said. “The number of unique visitors per month is 12.5 million, ranking first in the banking sector, as well as the first place in all financial applications (apps), confirming the platform business and confidence.”
■ Significant expansion of mid-interest rate loans for low and mid-sized creditors + to self-employed loans
Kakao Bank takes the current strategy, but fills the gaps that were lacking. The plan is to focus on the strategy of’Kakao Bank First’ that comes to mind first when it comes to banking. In particular, it is expanding the mid-interest rate loans to mid- to low-end creditors who had planned to supply KRW 1 trillion annually.
CEO Yoon Ho-young said, “The main goal is to borrow low and mid- to mid-range credits.” He said, “I thought the scale of mid-interest rate loans was appropriate, but it was true that as the growth rate of assets increased rapidly, it was concentrated on high creditors.” I will be able to do it,” he explained.
There are no specific scales and limits set yet. However, CEO Yoon Ho-young added, “What I can promise is that I will increase it compared to last year.”
In this context, Kakao Bank is also entering the 100% mobile-based lending market for individual businesses (small business owners) among corporate finance. CEO Yoon Ho-young said, “Under the Special Law on Internet Specialized Banks, we cannot lend to large corporations, but from an inclusive financial perspective, we thought that we should do a self-employed loan.” Bank and Toss Bank) and the business agreement is expected to be commercialized in the second half of this year and put on the market.”
■ Technological competence is utilized for the’core’ of Carvin and the enhancement of CSS
What is needed to manage the soundness of mid- and low-to-mid-interest loans and loans to private businesses is an advanced credit rating model (CSS). This is because it is possible to predict the delinquency rate through CSS to reduce the risk at the bank-wide level.
CEO Yoon Ho-young said, “The last three years have been a time of accumulation for CSS enhancement.” “I do”. About 40 big data experts (data scientists), including risk experts, are working at Kakao Bank.
As a company based on information and communication technology (ICT) is the largest shareholder, the company also cited its technology capabilities as a’core asset’ of Kakao Bank. CEO Yoon said, “Because Kakao Bank is a mobile bank that customers use the most, it must handle traffic and present a business model,” he said. “Artificial intelligence (AI) and machine learning are everyday technologies embedded in the elements of Kakao Bank.” did.
Kakao Bank will start operating the Financial Technology Research Center this year, designated as an innovative financial service (regulation special case) by the Financial Services Commission. This is the first space in the financial sector to apply the network separation exception, and seeks collaboration between Techpin and academia to develop AI, security, and non-face-to-face technologies.
CEO Yoon Ho-young said, “Kakao Bank has a different starting line from existing banks that think technology-oriented,” he said. “It is a small difference in technical capabilities, but we believe that it is giving customers a lot of experience. Kakao Bank’s core competitiveness technology is always higher in the market. I will make it a level.”
■ IPO promotion, traffic and transactions are important indicators for this year
Kakao Bank is pursuing an IPO with the goal of this year. As the host company for the IPO was selected and related procedures were in progress, CEO Ho-young Yoon avoided commenting on figures such as profitability and valuation.
CEO Yoon said, “Internally, rather than the size of profits, I think that traffic that comes in a lot through customer convenience, and transactions that such customers use and use a lot, are important indicators.” , It’s just a result,” he said.
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The timing is estimated to be in the second half of this year. CEO Yoon said, “With the results of 2020, the settlement of accounts at the general shareholders’ meeting at the end of March is confirmed, so in the first half (IPO) is a little difficult.”
In addition, CEO Yoon said that he plans to apply for a second My Data (personal credit information management) business license.