According to banking sources on June 11, Toss Bank and Hyundai Capital have applied for their joint loan product to be recognized as an Innovative Financial Service by the Financial Services Commission (FSC).
If selected as an Innovative Financial Service, the product will be piloted in the market for a certain period. The FSC and the government prioritize improving financial accessibility for underserved communities, making it likely that this joint product will receive approval. The collaboration is expected to involve Toss Bank facilitating Hyundai Capital's products through its platform.
This is the first time Toss Bank has partnered with a capital company for joint loans. Previously, Toss Bank launched the 'Together Loan' in collaboration with Gwangju Bank, becoming the first in the financial sector to do so. The 'Together Loan' allows both banks to conduct their own assessments to determine interest rates and limits, and within nine months of its launch, it surpassed 1 trillion won in cumulative supply. Now, by extending its collaboration beyond banks to include capital companies, Toss Bank aims to reach second-tier financial customers.
Demand for second-tier loans has notably increased recently. Due to prolonged economic downturns, regulatory constraints from financial authorities, and geopolitical risks, borrowers unable to access first-tier financial institutions are turning to second-tier options, including capital companies. As of May, household loans from specialized credit finance companies increased by 600 billion won, comparable to the mutual finance sector's increase of 700 billion won.
Hyundai Capital has maintained a low delinquency rate of around 0% in the first quarter of this year, positioning it as one of the healthiest companies in the industry compared to other capital firms with rates reaching up to 3%. This strong financial position allows Hyundai Capital to offer competitive interest rates and loan limits. With a diverse product lineup that includes mortgage loans, personal loans, and auto loans, there are expectations that the partnership with Toss Bank will maximize synergies.
Once the joint loan model is operational this year, borrowers seeking second-tier loans will be able to compare and analyze various capital products within the Toss Bank mega app. Toss Bank is expected to secure fees while also practicing inclusive finance by indirectly supporting second-tier borrowers.
A financial industry insider stated, "As competition for market share intensifies due to various regulations, collaborations among banks, capital companies, insurance firms, and savings banks will accelerate."
* This article has been translated by AI.
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