Finda Set to Acquire Daewon Savings Bank, Expanding Financial Services

Loan comparison platform Finda is poised to acquire Daewon Savings Bank, aiming to expand its business beyond loan brokerage to include both deposits and loans.

According to sources in the financial sector, the Financial Services Commission is set to present Finda's acquisition proposal for Daewon Savings Bank at its regular meeting on the 21st for final approval.

If the approval proceeds without issues, Finda will complete the regulatory process for the acquisition. Earlier, Finda signed a stock purchase agreement (SPA) in June to acquire 100% of Daewon Savings Bank, based in Gyeongju, for 12 billion won.

With the acquisition of Daewon Savings Bank, Finda will not only broker financial products but also design and supply its own loan products.

As competition intensifies in the savings bank acquisition arena, Finda plans to position itself as an 'AI-native bank' focused on non-face-to-face services. Kyobo Life is acquiring SBI Savings Bank, while Hanwha Life is taking over Accuon Savings Bank. Finda aims to utilize data accumulated from its loan comparison and brokerage processes to redesign its operations, including customer consultations, loan assessments, and risk management, with minimal staffing through AI.

Previously, Finda lacked its own deposit-taking capabilities and relied on borrowing funds from commercial banks or earning brokerage fees. The acquisition of a savings bank is expected to diversify its funding structure by allowing it to accept deposits.

Finda's second-largest shareholder, JB Financial Group, is also expected to create synergies. JB Financial has a business base in the Jeolla region. By expanding its operations into Daegu, Gyeongbuk, and Gangwon, the areas served by Daewon Savings Bank, Finda anticipates building a business portfolio that encompasses both first-tier and second-tier financial customers.

However, challenges remain post-acquisition. With the increasing importance of soundness management in the savings bank sector due to the fallout from real estate project financing (PF) failures and rising funding costs, Finda must demonstrate its ability to secure stable funding and manage non-performing loans. As of the second quarter of this year, Daewon Savings Bank's total assets stood at 3 billion won, a decrease of 9.22% compared to the end of last year.

A financial sector official noted, "As there is a growing demand for expanding loans to local small and medium-sized enterprises and mid-to-low credit borrowers, financial institutions targeting these groups are collaborating. By working together, they can reduce both time and risk, leading to an increase in alliances among local financial groups, savings banks, and even between internet banks and local banks."