Will Kakao and Coupang loans come out? Boosting’Platform Finance’ Using Big Data

Following Naver loans, loan services from various platform companies such as Kakao and Coupang will be available. The financial authorities decided to activate platform finance that provides loan services using big data accumulated on online platforms. On the 28th, the Financial Services Commission announced a plan to promote digital finance innovation.

The Financial Services Commission decided to promote platform finance activation using data from platform companies.[사진 픽사베이]

Platform finance is a service that provides a variety of financial products such as loans using large-scale data accumulated in platforms such as Naver and Kakao. For example, Naver Financial provides a loan service by reflecting the sales flow of small business owners in Naver, the proportion of regular customers, customer reviews, and customer response speed in real time.

The reason why the financial authorities are revitalizing the platform is that it is difficult to provide sufficient financial support for small and medium-sized businesses, etc. with only the secured loans of the existing financial sector. Hyung-ju Lee, head of the Financial Innovation Division of the Financial Services Commission, said, “We need to foster platform finance in terms of the need to provide financial services to small business owners who have not received sufficient financial services from existing financial companies and provide better credit ratings.”

A plan for digital finance innovation announced on the 28th by the Financial Services Commission. Financial Committee

An example by the Financial Services Commission is Mercado Libre, an Argentine e-commerce company called’Amazon of Latin America’. The Financial Services Commission explained that the company made loans to the vulnerable through a credit rating model that uses non-financial information, and that it performed better in terms of delinquency rates than the existing credit ratings of the financial sector.

The Financial Services Commission is also planning to approve non-financial credit rating agencies (CBs) that evaluate personal credit using only non-financial information such as online shopping. It also considers how to use it by providing information on commerce sales of public institutions to platform companies, such as opening the purchase and sales data of SMEs held by the Credit Guarantee Fund and Korean Company Data to the private financial sector.

The regulation of one company exclusive stock does not apply to the loan brokerage of platform operators. In the past, under the principle of exclusive ownership of one company, loan recruiters can only broker loans from one financial company. The Financial Services Commission decided to admit exceptions such as one company exclusiveism when existing financial companies such as banks also use online platforms.

The financial authorities decided to announce plans to revitalize platform finance with these details in the first half of this year. An official from the Financial Services Commission said, “Loans made in Naver can be seen as an early stage for small business owners who enter the store.” “As overseas platform companies already use various non-financial information, various companies such as Kakao and Coupang They will be able to have the ability to use non-financial information.”

However, if platform finance is activated, there is also a possibility that side effects such as market monopoly of big tech companies or the concentration of lending will occur.

In response, Kim Yong-jin, professor of business administration at Sogang University, who is a member of the Financial Development Review Committee, said, “There was also an opinion that the concern that the expansion of the dominance of large platforms would hinder fair market order should also be considered. “We need a policy that considers the balance between the development of the industry and the market, such as the open sharing of the company.”

Digital finance innovation plan announced by the Financial Services Commission on the 28th. A digital sandbox system will be introduced to simulate fintech business ideas with real financial data. Financial Committee

In addition, the Financial Services Commission decided to introduce a’digital sandbox’ to support fintech startups. Fintech companies that want to verify business ideas can conduct virtual tests based on actual data. The intention is to open the way for fintech startups by verifying ideas in advance before attracting funds or commercializing them.

The Fintech Promotion Support Act is also being promoted. The bill includes institutional mechanisms to promote fintech investment, such as expanding the range of fintech that financial companies can invest in and immunity from employees in case of investment loss. It will also include measures to prevent financial companies from unreasonably stealing technology or transferring damages, and prohibiting large platform companies from interfering with the entry of other platforms.

Director Lee said, “Existing financial companies have limited investment in information technology (IT) due to the separation of financial and financial industries. Through the legislation, fintech investments by financial companies will be revitalized, and the foundation will be laid to promote financial-IT convergence. I can.”

Reporter Ahn Hyo-seong [email protected]