BalanceHero, a domestic fintech corporation that entered India, announced on the 26th that it recorded a consolidated revenue of 38.7 billion won and a pre-tax profit of 8.1 billion won in the second quarter of this year. This is the highest quarterly performance ever, with the cumulative pre-tax profit for the first half of the year totaling 12.2 billion won.
BalanceHero enhanced its profitability by expanding its financial product recommendation business based on an artificial intelligence (AI) alternative credit evaluation system, launched this year in partnership with financial corporations.
The AI-based financial decision-making system, called 'AI Finance Decisioning Platform,' improved the speed of matching partner products and customers, thereby increasing the handling amount. It plans to expand its intermediary product lines, including insurance and credit cards, in the future.
The improvement of the cost structure, including managing product arrears through AI advancement, also contributed to the increase in profitability. By strengthening customer audits and risk management, the new handling amount (AUM) rose by 4.6% compared to the first quarter, achieving maximum profitability.
BalanceHero adjusted its existing business plans upward, setting this year's pre-tax profit target at approximately 26 billion won. The annual revenue target is set at 160 billion won, aiming to enhance competitiveness in the 'AI financial platform' along with medium to long-term profitability improvements for sustainable growth.
A representative from BalanceHero noted, 'The key to the second-quarter performance was strengthening AI-based risk management capabilities to secure a stable revenue structure.' They added, 'We will continue our technology-driven growth trend and solidify our position as a specialized AI fintech platform for developing countries together with our partners and customers.'