Three Internet Banks See Loan Proportion to Mid- and Low-Credit Borrowers in the 30% Range in Q2
Disclosure by the Korea Federation of Banks on August 28
KakaoBank supplied KRW 520 billion in unsecured loans
At Kbank, 32.4% of new average loan balances were to mid- to low-credit borrowers
Toss Bank provided loan opportunities to 380,000 mid- to low-credit customers
The proportion of loans to mid- to low-credit borrowers by the three internet-only banks in the second quarter of this year reached the 30% range.
According to disclosures from the Korea Federation of Banks and each company on August 28, the proportion of outstanding loans to mid- to low-credit borrowers in the second quarter was 31.9% for KakaoBank, 31.3% for Kbank, and 34.2% for Toss Bank.
KakaoBank supplied KRW 520 billion in unsecured loans to mid- to low-credit borrowers in the second quarter. Since its launch in 2017, the cumulative supply has surpassed KRW 16 trillion. The proportion of new mid- to low-credit loans in the second quarter was 38.4%, exceeding its target of 32%.
An analysis of KakaoBank’s mid-credit loan customers in the second quarter showed that 1 out of 2 customers (50%) experienced an increase in their credit score within one month of taking out a loan. On average, their credit scores rose by 47 points. The customer who saw the greatest increase had their score rise from 736 to 971. Among those who took out mid-credit loans, 21% were upgraded to high-credit status as their credit improved.
Based on the average balance of new unsecured loans in the second quarter, the proportion of mid- to low-credit borrowers at Kbank was 32.4%. Kbank supplied KRW 366.3 billion in new unsecured loans to mid- to low-credit borrowers in the second quarter, an increase of about 31% compared to the same period last year (KRW 278.9 billion). Since its launch in 2017, Kbank’s cumulative supply of unsecured loans to mid- to low-credit borrowers reached KRW 9.0268 trillion as of the second quarter of this year.
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At Toss Bank, the proportion of new loans to mid- to low-credit borrowers in the second quarter was 32.7% based on new loans issued. Toss Bank has provided loan opportunities to roughly 380,000 mid- to low-credit customers cumulatively. In the first half of this year, the company supplied approximately KRW 1 trillion in inclusive financial products. Of this, mid-rate loans including Saitdol Loans totaled KRW 576.1 billion, and Sunshine Loans amounted to KRW 409.9 billion in the first half. Notably, since its launch in August 2023, the cumulative supply of Sunshine Loans has reached KRW 1.639 trillion.
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