In the third quarter of this year, the share of mid- to low-credit loans at the three internet-only banks all exceeded the target level of 30%.
According to the Korea Federation of Banks on the 28th, the share of credit loans to mid- to low-credit borrowers (based on average balance) at internet-only banks in the third quarter was KakaoBank 32.9%, Kbank 33.1%, and Toss Bank 35.2%.
The share of credit loans to mid- to low-credit borrowers refers to the proportion, out of a bank's total household credit outstanding loan balance (average), of personal credit loans, sole proprietor credit loans, and policy finance loans exceeding the guarantee limit that are extended to borrowers in the bottom 50% of credit scores based on KCB. On a new origination basis for the third quarter as well, KakaoBank posted 35.4%, Kbank 33.9%, and Toss Bank 43.7%, all above the 30% target.
Financial authorities unified the target share of credit loans to mid- to low-credit borrowers at internet-only banks to "30% or more based on average balance" last year, and from this year added the criterion of "30% or more based on new originations."
By bank, KakaoBank said its third-quarter outstanding loan balance for mid- to low-credit borrowers totaled 4.9 trillion won. Since its launch in July 2017, cumulative lending over eight years has totaled 15 trillion won. Kbank explained that the amount of new mid- to low-credit loans supplied in the third quarter was 333.8 billion won, about 20% higher than the previous quarter (278.9 billion won). It said the third-quarter average balance is estimated at about 2.7 trillion won. Since its 2017 launch, cumulative supply has reached 8.0033 trillion won.
Toss Bank did not separately disclose the third-quarter outstanding loan balance for mid- to low-credit borrowers. However, it said the cumulative amount of mid- to low-credit loans supplied since launch totals 9.5 trillion won.