Toss Bank starts operations at full speed, targeting borrowers with low credit
Toss Bank CEO Choi Min-seok speaks at an online press conference on Tuesday. (Bank to launch)
Toss Bank, South Korea’s third-largest internet-only bank, began full-fledged operations on October 5, showcasing its user-friendly financial services that differentiate themselves from competitors who are rapidly expanding their presence in the emerging market.
Under the slogan ‘New Bank, New Bank’, the online-only lender showcased its convenient deposit and loan service tailored to as many users as possible, including lean filers with little credit history and customers. low credit borrowers.
“Even though banking services have moved from offline only to offline and online, the quality of service has changed little in the sense that it was designed for the benefit of providers. So we thought about how to bring innovation from the users’ point of view, ”Hong Min-taek, CEO of Toss Bank, said at the online press conference.
Unlike other banks that offer a wide range of financial products, Hong said Toss Bank only offers three types of products: deposit service, loan service, and debit card.
Hong said Toss Bank provides loans not only to borrowers with good credit, but also to thin filers who have been overlooked by commercial banks.
The reason light filers have had difficulty getting loans from commercial banks is because they only use borrowers’ loan data, such as loan history or their defaults on credit cards, according to Hong.
“But Toss Bank has developed its own credit scoring system, Toss Scoring System, which integrates both loan data and other data such as bank transaction history and franchise payment data, which allow light filers to receive loans from the bank, ”Hong said.
According to Cho Min-seok, head of the Toss Bank data science team, more than 30% of light filers will be able to use Toss Bank’s credit lending services.
Hong is also committed to providing user-friendly financial services to foreign residents in Korea.
“We understand that many foreigners have had problems with online banking. But we have recently found the legal basis to offer online self-identification services for foreigners using the foreigners registration certificate. We will launch related services soon, ”said Hong.
Regarding deposit services, Hong pointed out that users do not have to subscribe to regular savings or installment savings, but simply click on the “savings button” in the Toss mobile app. whenever they want to use the services. Both deposit services give an annual interest rate of 2% with no expiration date or maximum deposit limit.
The Toss Bank debit card that gives up to 46,500 won ($ 39) in monthly cash returns acts as a one-time password banking device on the app, Hong said. When transferring money, users only need to tap the card image on the phone to complete the self-identification process.
Of the 1.1 million people who signed up to open a Toss Bank account, 10,000 were expected to receive a notice from Toss Bank on October 5. In the coming days, Toss Bank will open accounts for the remaining applicants.
Financial Services Commission chief Koh Seung-beom and Representative Yoon Jae-ok, Chairman of the National Assembly’s National Policy Committee, also congratulated Toss Bank via video conference.
Meanwhile, after the inauguration of Toss Bank, shares of rival Kakao Bank, an online-only lender, plunged 8.4% to 60,000 won on the same day.
By Byun Hye-jin ([email protected])