The Korea Federation of Savings Banks announced on the 22nd that its investment linked to online investment platforms, which combines the know-how of savings banks in providing financial services to the public and the credit evaluation technology of online investment-linked financial companies, has exceeded 10 billion won in cumulative transaction performance since its first service launched at the end of May.
The investment linked to savings banks is a financial service aimed at expanding the supply of medium-interest credit loans for individuals with low to medium credit ratings. It was newly introduced after receiving the designation as an innovative financial service from the Financial Services Commission in July last year. After the online investment platform recruits and assesses individual credit loan borrowers, it requests the linked savings bank to decide on investment, and the savings bank supports funding through its internal decision-making process.
The investment products linked to savings banks primarily provide credit loans at an average interest rate of 12% for individuals in the lower 50% of the personal credit score distribution. Together with the savings banks' own medium-interest loans, these are loan products for low to medium credit individuals. Although the total execution scale is not large as the linked investment service is in its early stages, both savings banks and online investment platforms consider achieving 10 billion won in transactions a significant accomplishment due to the steady supply of funds for actual demand from individuals.
Oh Hwa-kyung, president of the Korea Federation of Savings Banks, said, "It is meaningful that despite the challenging operating environment for savings banks, they are collaborating with online investment platforms to supply funds for the real lives of the public as intended. I hope more savings banks prepare for linked investments with online investment platforms, establishing it as a channel for supplying financial services to the public, and the federation will spare no effort in support and interest."