Toss, operated by Viva Republica, will apply its alternative credit assessment model, Toss Score, to the loan evaluations of Korea Savings Bank. This initiative aims to enhance loan accessibility for mid- to low-credit borrowers by assessing their repayment capabilities through various financial data that traditional credit evaluations often overlook.
On August 11, Toss announced a strategic partnership agreement (MOU) with Korea Savings Bank and PFCT, focusing on improving financial access for mid- to low-credit customers.
The core of this agreement is the integration of Toss Score into Korea Savings Bank's credit assessment process. Toss will develop a tailored credit evaluation model for the bank, which PFCT will incorporate into its real-time credit strategy operation solution, AirPack Studio. Korea Savings Bank plans to utilize this evaluation system in its actual loan assessments.
While traditional credit assessments primarily rely on financial transaction history and credit scores, Toss Score evaluates repayment ability using a broader range of financial data, including account transactions, card expenditures, and investment and insurance payment histories. This approach aims to expand the evaluation scope to include borrowers who have been disadvantaged by existing assessment systems due to limited financial transaction histories or low credit scores.
Korea Savings Bank intends to gradually implement Toss Score starting in the second half of this year, with plans to expand its application range in the future. The goal is to improve financial access for borrowers who have not been adequately evaluated by traditional financial institutions.
Shin Hyun-ho, Vice President of Toss's Financial Division, stated, "The alternative information that Toss has accumulated on its platform reveals the repayment capabilities of customers that traditional evaluations often miss. We hope that customers with limited credit histories or low credit scores, who have faced unfavorable loan conditions, can be reassessed using Toss's alternative information and secure loans at rates that suit their circumstances."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.