Major lenders including KB Kookmin Bank, Shinhan Bank and Woori Bank are taking part in a pilot program for the Financial Services Commission’s Small Business Specialized Credit Scoring Model, known as SCB, the financial industry said Thursday. SCB is designed to evaluate future growth potential using nonfinancial indicators including sales, industry type, commercial district conditions and business capability, in addition to traditional measures.
Banks plan to use SCB to identify small business owners with strong growth prospects and offer tailored support such as higher loan limits and preferential interest rates. The model is also expected to provide more precise assessments for sole proprietors with limited credit histories by focusing on business competitiveness.
Woori Bank said it plans financial support totaling about 300 billion won and will pilot SCB in reviews for new loans to sole proprietors starting in the second half of the year. Shinhan Bank said it will apply preferred review standards — including higher limits and rate benefits — for new sole-proprietor loan applicants with strong SCB grades. KB Kookmin Bank said it will run the pilot with the commission for about a year and provide rate and limit benefits mainly through its business-loan products, including KB Ilsacheonri Loan and KB Together Loan.
The SCB model was developed by combining existing business credit grades with growth grades calculated by the Korea Credit Information Services using alternative data such as technology capability, sales and online platform information.
The Financial Services Commission previously identified the SCB rollout as a key task at a task force meeting on overhauling the credit evaluation system and asked financial institutions to join the pilot. Seven banks, including major commercial lenders, are participating.
* This article has been translated by AI.
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