Standard Chartered Bank Korea said on Sept. 28 that it has partnered with Toss -- a financial services app operated by Viva Republica -- to launch a short-term lending program on Wednesday.
Under the partnership, SC Bank Korea outsources credit evaluation process to Toss. SC Bank Korea is the first lender operating here to outsource credit evaluation of customers to a fintech company.
A SC Bank Korea employee holds a signboard to inform customers that the lender has forged a partnership with Toss to launch a short term lending program on Wednesday. (SC Bank Korea)
SC Bank Korea receives application for the program via Toss’ mobile app and requests the fintech company to evaluate financial credit of a potential borrower, officials said.
The entire credit assessment process, which includes a review of an applicant’s transaction history on bank accounts and credit cards, takes just three minutes, they added.
The SC bank plans to issue a total of 5 billion won ($4.2 million) to consumers for the next two years of trial service period. An individual can borrow up to 500,000 won, which needs to be repaid in a month.
“We hope our new lending program would be a springboard for innovative financial services in partnership with fintech firms,” said Cho Hyung-ki, head of digital and personal banking at SC Bank Korea.
By Choi Jae-hee (firstname.lastname@example.org)