Toss, PFCT to Supply Alternative Credit-Scoring Model···“Lowering Barriers to Financial Services”

[Financial News] Toss, operated by Viva Republica, announced on the 9th that it had signed a strategic memorandum of understanding (MOU) with PFC Technologies (PFCT), an AI-based financial technology company and operator of Cple, to enhance credit-scoring models.
Under the agreement, the two companies will jointly develop and distribute credit-scoring models tailored to individual financial institutions. Their goal is to refine the institutions’ credit-screening strategies.
The signing ceremony was held on the 8th at Toss’s Sinnonhyeon office in Seocho District, Seoul. Shin Hyun-ho, executive vice president of Toss’s financial business division, and Soohwan Lee, CEO of PFCT, attended the event.
The partnership will use Toss Score, an alternative credit-scoring score developed by Toss in collaboration with Korea Rating & Data (KoDATA), along with various data sources to create credit-scoring models optimized for each financial institution. PFCT will distribute and operate the models through its lending-tech solution AIRPACK (Airpack).
Financial institutions will be able to further refine their credit-screening strategies for determining loan interest rates and limits through these customized models. The two companies expect the models to help them manage risk more precisely while improving profitability.
Consumers may also benefit from a more favorable financial environment. By assessing repayment capacity more broadly through various alternative data sources, consumers whose ability to repay was not fully recognized under conventional credit assessments may have a better chance of receiving appropriate approval decisions and interest-rate and loan-limit terms.
Toss believes this will ultimately lower barriers to financial services. It could open new opportunities for people who have been easily excluded from mainstream financial services because they lack sufficient income or financial history. The approach also aligns with the government’s emphasis on inclusive finance.
Shin Hyun-ho said, “Toss Score and data provide a new view of customers’ repayment capacity, which conventional assessments can easily overlook.” He added, “Through our partnership with PFCT, we will strengthen financial institutions’ screening capabilities and help more customers access financial services under terms suited to their circumstances.”

[email protected] Kim Tae-il Reporter