Although Internet-only banks recorded good results in the third quarter, they are struggling with the task of increasing the proportion of credit loans for low- and medium-credit users by the end of the year.
According to the financial industry on the 8th, K-Bank and Kakao Bank, the first and second Internet-only banks,[323410]is doing its best to raise the proportion of credit loans to low-medium and low-credit users (credit rating 4 or lower) to the target of 20% by the end of the year.
In May, the financial authorities pointed out that Internet-only banks conduct conservative loan business centered on high-credit groups, contrary to the original purpose of their establishment to expand the supply of loans to low- and medium-credit people, and ordered an increase in the proportion of loans to low- and medium-credit people.
At that time, Kakao Bank set 20.8%, K-Bank 21.5%, and Toss Bank 34.9% as the target for the percentage of credit loans to low-medium and low-credit users at the end of this year. We aim to increase the proportion in stages and exceed 30% by the end of 2023.
As of the end of the third quarter of this year, Kakao Bank’s credit loan ratio to low-medium and low-credit loans stood at 13.4%.
Kakao Bank upgraded its own credit rating system (CSS) and launched a loan product for low-medium and low-credit borrowers, raising the proportion of loans to low-medium and low-credit borrowers from 10.6% at the end of the second quarter. However, it is far below the year-end target of 20.8%.
From last month to the end of the year, Kakao Bank stopped lending to high-credit borrowers, excluding jeonse and monthly rentals, and is concentrating on loans for medium- and low-credit individuals and private business loans.
A Kakao Bank official said, “As loans to high-credit users are closed, the proportion of loans to low-medium and medium-credit borrowers is expected to expand rapidly in the fourth quarter.”
As of the end of the second quarter, the proportion of K-Bank’s credit loans to low-medium and low-credit borrowers was 15.5%, and although the proportion in the third quarter has not yet been disclosed, the outlook is favorable that it will not rise from the second quarter.
This is because, in the third quarter, the demand for loans from high-credit people who did not get loans from commercial banks due to the strengthening of household debt management by the financial authorities rushed to K-Bank.
In response, K-Bank recently suspended applications for new and increased negative bankbook loan products by high-credit customers until the end of the year, and held a cashback event to return interest for two months to customers with low-medium and low credit to achieve the year-end target (21.5%). are doing their best
In the case of Toss Bank, which had to stop new loans because its loan limit was exhausted within 9 days of its inception, it was found that the proportion of credit loans to low-medium and low-credit borrowers was about 33% at the time of loan suspension.
Although this is a higher number than other banks, it has become difficult to achieve this year’s target (34.9%) due to the suspension of new loans.
In the ‘Plan to expand loans to low- and medium-credit banks for Internet-only banks for innovative inclusive finance’ announced in May, the financial authorities stated, “If Internet-only banks do not implement their plans (expand loans to medium- and low-credit users), they will consider licensing and licensing new businesses.” have.
As an incentive at the time, he said, “We are considering applying some exceptions to the supply amount for low- and mid-credit households when managing the household debt growth rate target.”
Financial industry officials said that it is difficult to guess the disadvantages of failing to meet the medium-interest rate loan target because the government’s explanation of penalties and incentives is not clear.
An official from the FSC said, “It is not meant to take immediate action if the target is not met.” “As social criticism continued that the proportion of loans to low-medium and low-credit banks was small compared to the purpose of the establishment of an Internet-only bank, the proportion of loans will be checked and the licensing process of other financial businesses will be carried out later. The intention is to consider it as a qualitative judgment factor in
It is pointed out that the increase in bad debt costs as Internet banks take measures such as suspending high-credit loans to increase the proportion of medium-interest loans, which can hinder growth.
Analysts such as Park Hye-jin, a researcher at Daishin Securities, pointed out that medium-interest loans increase bad debt costs, so Internet banks should pay attention to soundness management such as delinquency rates in the future.
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