Nonghyup Bank Lowers Loan Barriers Even for Those With Limited Financial Histories

[Financial News] NH Nonghyup Bank will improve its credit assessment system to expand access to loans for individuals and sole proprietors with limited financial transaction histories. It plans to expand financial support for customers who have not been adequately assessed under conventional credit evaluations by using nonfinancial information, including utility payment records and spending patterns.
According to the financial industry on the 9th, Nonghyup Bank will introduce an alternative-data-based credit assessment system and strengthen financial support for individuals and sole proprietors with limited financial histories.
The enhanced loan review process is intended to assess the creditworthiness from multiple angles of thin-file customers—those with limited financial histories—whose creditworthiness has been difficult to determine using only conventional financial transaction data. The bank plans to improve access to financial services and refine its risk management by using a range of nonfinancial information to tailor loan reviews to each customer's circumstances.
The key step is the introduction of an alternative-data-based credit scoring model called the “All One Bridge Model.” Nonghyup Bank developed the model by analyzing approximately 10,000 alternative data points from nine institutions. In addition to the telecommunications and small-value payment data it already uses, the bank will incorporate utility payment records and spending patterns, including shopping data, into its credit assessments.
The bank plans to expand financial support for customers with moderate or lower credit ratings and senior customers, who have been difficult to assess adequately under conventional credit evaluation methods. It has also laid the groundwork to reduce financial blind spots and identify potentially creditworthy customers.
The bank has also improved the maturity-extension review process for existing loan customers. While strengthening assessments based on each customer's credit risk and the system for ongoing management, it has automated and simplified maturity extensions for creditworthy customers with good repayment capacity. This has improved customer convenience and the bank's operational efficiency.
Kim Seong-hun, Nonghyup Bank's vice president overseeing credit review, said, “We improved the review system to address gaps in financial support for those who had difficulty accessing it under the previous system. We will continue to improve the review system, strengthen asset soundness, and expand inclusive finance to improve customers' access to financial services.”

[email protected] Seo Ji-yoon Reporter