In fact, Internet banks have promised to embrace more middle and low-credit users. Then why do they reach out to middle and low-credit people? There is an answer to the Special Act on the Establishment and Operation of Internet Banks (Internet Banking Act), which was born in October 2018. This is the reason for the establishment of the law, such as “promoting the benefits of financial consumers.”.
Prior to that, the reason for creating an Internet-only bank by creating a special law was ‘activating mid-interest loans’. It was the price of giving exceptional favors to Internet-only banks, such as easing the separation of banking and commerce (restricting industrial capital from holding bank shares). Under the Banking Act, industrial capital can hold only up to 4% of voting banks, but up to 34% of Internet-only banks.
However, financial authorities believe that Internet banks such as K-Bank and Kakao Bank have not played their role properly so far. Like existing commercial banks, criticism continued that they mainly treated high-credit people. According to the Financial Services Commission, the proportion of mid- and low-credit users of Kakao Bank and K-Bank was only 10.2% and 21.4%, respectively, as of the end of last year.
Internet banks also agreed with the criticism of financial authorities and the financial sector. 비대면폰테크 It promised with the financial authorities to gradually increase its share from this year. By 2023, Kakao Bank targeted 30% and K-Bank targeted 32%. In the case of Toss Bank, the target is 44%.
Internet banks have become busy as they have raised their targets. In order to attract mid- and low-credit users, the company is eager to secure customers by lowering interest rates and increasing limits. As a result, interest rates in the minimum 2% range, which are not much different from those in high-credit loans, have emerged.
Kakao Bank has begun to embrace mid- and low-credit users in recent months. A task force (TF) team has been set up to respond throughout the company. Kakao Bank recently increased the maximum limit of heavy credit loan products from 70 million won to 100 million won for customers with a credit score of 820 or less based on Korea Credit Bureau (KCB). It was further expanded three months after it increased from 50 million won to 70 million won in March.
Interest rates have also been drastically cut. The interest rate on heavy credit loans was cut by up to 1.52 percentage points, marking the lowest interest rate of 2.98 percent recently. Interest rates also dropped by up to 1.2 percentage points last month. During the same period, the government strives to “care for mid- and low-credit people”while reducing the benefits of credit loans for high-credit borrowers.
Until the 9th of next month, the benefits of ‘first month interest exemption’will also be given. Since the 10th, middle and low-credit customers who have newly received credit loans or office workers’Saitdol loans from Kakao Bank are eligible. Even if a loan is not received, interest will be doubled if a middle and low-credit customer subscribes to a “26-week installment savings”.