Online lender expands beyond savings banks into mutual finance sector

8Percent logo. [Courtesy of 8Percent]
8Percent logo. [Courtesy of 8Percent]

Online peer-to-peer lender 8Percent announced Monday it will launch investment products linked to mutual finance institutions in the second half of this year. The move is expected to accelerate mutual finance sector participation in P2P-linked investment through the Financial Services Commission's innovative finance service designation.

P2P-linked investment bypasses traditional financial institutions such as banks, connecting borrowers and investors directly through an online platform. Investors browse loan products on the platform, select a borrower or project, and earn returns from the interest paid by borrowers.

8Percent plans to begin with NH NongHyup and then extend the linked-investment model across the broader mutual finance sector. The company expects that mutual finance institutions' participation will allow mid-rate credit supply to reach local communities beyond the Greater Seoul area.

The company currently runs linked-investment programs with more than 10 savings banks. Those products have posted an average annual return of 12 percent and a delinquency rate in the 1 percent range. Building on that track record, 8Percent intends to widen its partnership network to include mutual finance institutions and expand the supply of mid-rate loans.

P2P-linked investment formally launched in May 2025 and has since supplied a cumulative 400 billion won (about $263 million) in mid-rate unsecured loans over the past year. Of the 79 savings banks currently operating, 49 are designated under the innovative finance service program. Industry observers regard the model as a new form of collaboration that combines P2P lenders' data-driven credit assessment capabilities with savings banks' fund management expertise.

"Mutual finance institutions and online P2P lenders each bring distinct strengths — community-based finance on one side and digital credit evaluation on the other," said Lee Hyo-jin, chief executive of 8Percent. "We expect that by working together, we can open up financial opportunities for more mid- and low-credit borrowers and small business owners, and contribute to the expansion of inclusive finance."


won@heraldcorp.com