Toss Signs MOU with PFCT to Advance Credit Evaluation Model Sophistication

Joint Development of Customized Credit Evaluation Models for Financial Institutions

Toss announced on September 9 that it has signed a strategic memorandum of understanding (MOU) with PFCT, an artificial intelligence (AI)-based technology finance company, to advance credit evaluation model sophistication.

On the 8th, at the Toss Sinnonhyeon Office in Seocho-gu, Seoul, Shin Hyunho, Vice President of Financial Business Division at Toss (left), and Lee Suhwan, CEO of PFCT, are taking a commemorative photo at the business agreement ceremony between Toss and PFCT. Toss

The two companies will jointly develop and distribute credit evaluation models tailored for financial institutions, collaborating to refine lenders’ credit assessment strategies.

Under this partnership, Toss and PFCT will utilize data such as Toss Score—a proprietary alternative credit scoring system developed by Toss in collaboration with Korea Ratings·KR—to create credit evaluation models optimized for each financial institution. PFCT will then distribute and operate these models at financial institutions through its own solution, AIRPAC.

Toss will provide the data and consulting needed for model development, while PFCT will be responsible for implementing and optimizing the jointly developed models, as well as providing supporting frameworks and consulting.

Financial institutions will be able to further refine their loan screening strategies—including interest rates and credit limits—using these customized models. Because the models allow for fine-tuning assessment criteria, it is expected that lenders can more thoroughly manage risks while increasing profitability.

This offers benefits to financial consumers as well. By leveraging a wide range of alternative data to evaluate repayment ability, customers whose creditworthiness may not have been fully recognized under traditional models can now be assessed for better approval, interest rate, and credit limit terms.

This opens up new opportunities for those who, due to insufficient income or financial history, have often been excluded from the mainstream financial sector.

Shin Hyunho, Vice President of the Financial Business Division at Toss, stated, "The Toss Score and related data enable us to gain new insights into customers' repayment ability that traditional assessments might overlook. Through our collaboration with PFCT, we aim to enhance financial institutions’ screening capabilities and help more customers secure financial services under conditions tailored to their needs."

This content was produced with the assistance of AI translation services.