SCB applied to personal business loans and refinancing; largest loan supply among internet-only banks

[K bank]
[K bank]

K bank will introduce a new credit scoring model for small-business owners that draws on non-financial data — including sales figures, industry type and commercial district — and plans to supply 150 billion won ($110 million) in loans under the model annually.

The bank announced Wednesday it would apply the small-business credit scoring model, known as SCB, to its "Sajangnim" personal business loan product and its loan-refinancing service.

SCB is a credit assessment model that evaluates a small business's growth potential and repayment capacity by analyzing non-financial data such as sales, industry type and commercial district. It was developed to incorporate a business's growth prospects into loan screening — factors that are difficult to gauge from financial transaction history alone. The Financial Services Commission announced the framework in April, and eight banks began a pilot program on Aug. 31.

K bank plans to supply 150 billion won in SCB-based personal business loans annually, the largest volume among internet-only banks. Small-business owners who receive a high "growth rating" in the assessment will be eligible for preferential loan limits of up to 300 million won, the maximum under the Sajangnim personal business loan.

The same scoring framework will apply to loan refinancing. Small-business owners switching existing bank personal business loans to K bank can receive preferential limits based on their growth rating, allowing them to secure additional operating funds at the same time as they refinance. Both refinancing and loan-increase applications can be submitted through the mobile app.

K bank said it also aims to strengthen its inclusive finance role through the SCB rollout. The bank's cumulative personal business loan supply surpassed 5 trillion won as of the end of June. Its supply in the first half of this year reached 1.52 trillion won, equivalent to about 82 percent of its full-year supply last year.

K bank has previously used a range of alternative data sources in its loan screening, including its telecom-data-based credit model "Equal," merchant data from BC Card, Samsung and Shinhan Card, Naver Pay scores, and alternative credit information from the Korea Financial Telecommunications and Clearings Institute. The bank also plans to launch a personal business loan product this year that draws on Naver Pay's alternative credit assessment.

"The introduction of SCB allows us to evaluate small-business owners' growth potential and future repayment capacity with greater precision," a K bank official said. "We will continue to reduce blind spots in financial access, provide more customers with financial opportunities, and expand our role in inclusive finance."


forest@heraldcorp.com