Toss announced on the 26th that its 'loan switching' service has surpassed a cumulative loan execution amount of 1.5 trillion won two years after its launch.
'Loan switching' is a service that allows users of credit loans to move to products with lower interest rates than those they currently hold. Without the need for complicated document submissions or branch visits, it is possible to compare, apply, and execute all at once within the Toss app. Officially launched in May 2023 in line with financial authorities' introduction of an online one-stop refinancing infrastructure, it garnered significant interest with over 300,000 pre-registrations prior to its launch.
Starting with partnerships with 17 financial institutions in its initial launch, this service has now expanded its partnerships to over 45 financial firms. It has established a broad network of partnerships, including most of the first-tier financial institutions such as KB Kookmin Bank, Shinhan Bank, and Hana Bank, as well as second-tier financial firms like Woori Financial Capital, Shinhan Card, and SBI Savings Bank, thereby broadening customer choices.
So far, about 40,000 customers have switched loans through 'loan switching' at an average interest rate reduction of 1.8 percentage points. In particular, low-to-medium credit borrowers received an average interest benefit of 3.9 percentage points through this service. From the customers' perspective, this meant achieving savings on interest amounting to hundreds of thousands of won.
A Toss representative noted, 'I believe the significant achievement has been providing a practical alternative to financial consumers who have faced high interest burdens in a high interest rate environment over the past two years,' adding, 'In the future, we will continue to create an inclusive financial environment where more users can benefit based on technology and financial infrastructure.'