Toss Bank Begins Internal Testing for Mortgage Loan Launch… Product Release Imminent

Customer-Based Testing Began on September 16
Collateral Value of Villas Also Assessed Using AVM

Toss Bank, which aims to launch mortgage loan products this year, has begun internal testing with its employees. The scope of this test includes not only apartments, for which price comparisons are relatively straightforward, but also multiplex housing such as row houses and multi-family homes.

According to the financial industry on September 21, Toss Bank started a customer-based test (CBT) for its non-face-to-face mortgage loan product with its employees on September 16. CBT simulates the actual usage environment before launching a product and its systems, and is used to verify functions, convenience, and marketability.

In this test, Toss Bank is reviewing the entire process from loan application to collateral evaluation, screening, and execution. The subjects for this test are not only apartments whose market values can be easily checked via KB Real Estate and Korea Real Estate Board, but also villas have been included.

Toss Bank intends to use an Automated Valuation Model (AVM) to evaluate the collateral value of villas and to calculate loan limits in real time. Last year, Toss Bank selected an AVM provider for this purpose.

Since villas lack sufficient standardized market price information and often require individual appraisal, it is difficult to offer immediate loan limits if each property must be individually assessed.

It is expected that after checking collateral valuation results, the loan review process, and system stability through employee CBT, Toss Bank will proceed with the formal launch process. The detailed conditions and target customers for the actual product will only be finalized after completing the necessary reporting procedures with financial authorities.

A Toss Bank representative stated, "We are currently conducting CBT with our employees, and there is no change to our plan to launch the product within this year."

Toss Bank Headquarters in Gangnam-gu, Seoul. Photo by Jinhyung Kang aymsdream@

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