The savings bank sector will fully engage in linked investments for personal credit loans through online investment-linked finance (P2P).
On the 19th, the Korea Federation of Savings Banks announced that it signed a 'comprehensive business partnership agreement for linked investments' with five online investment companies. Online investment-linked finance is a financial service that attracts investment funds from individual and corporate investors through an online platform, loans the funds to borrowers, and returns the principal and interest to the investors.
Savings banks will play a role in supplying the necessary funds for personal credit loans, which have been collected and screened by online investment companies. The Korea Federation of Savings Banks noted, "The combination of the credit evaluation technology of online investment companies and the expertise and funding capabilities of savings banks will enable the supply of personal credit loans to a greater number of low to medium credit borrowers," adding, "As investors, savings banks will also be able to secure a new sales channel."