Online investment-linked finance company PFCT said on the 11th that over the past year it raised investment funds from 17 savings banks and supplied 186.6 billion won in unsecured loans to a total of 10,683 mid- to low-credit borrowers. The average interest rate on the loans was 11.01%, lower than the average rate on the Sunshine Loan, a financial product for low-income earners (12.52%), and the lowest rate on the savings bank Saitdol 2 loan (12.5%).
The average credit score of borrowers was 743 based on NICE Holdings. Of all borrowers, 63.31% were in the 700 to 799 range, and 22.35% were in the 600 to 699 range. The lowest credit score was 563.
PFCT's arrears rate was 0.37%, far lower than the average arrears rate of savings banks in the 9% range. PFCT said it uses "Airpack," its own artificial intelligence (AI)-based risk management solution, to analyze not only borrowers' financial capacity but also cash flow and potential future delinquencies to set interest rates and limits.
Lee Su-hwan, PFCT's CEO, said, "The first year of investment linked with savings banks proved that AI-based risk management technology can offer reasonable interest rates even to mid- to low-credit borrowers. We will work with more institutional investors to improve financial access for mid- to low-credit borrowers and expand the inclusive finance ecosystem."