토스 사장님대출Meanwhile, the size of loans to self-employed individuals grew to KRW 1.5 trillion, and among them, the proportion of loans to those with low or medium credit reached 49.8% of the total loan balance.
In the past year, when self-employed individuals and small business owners suffered from the triple whammy of COVID-19, inflation, and an economic downturn, Toss Bank has grown into a ‘bank that embraces more and broader customers’ by supplying funds to the market in a timely manner.
According to Toss Bank on the 20th, loans to self-employed individuals amount to a total of KRW 1.5 trillion (based on balance). It has been a year since the internet-only bank introduced the ‘Toss Bank CEO Loan,’ the first non-face-to-face, unsecured, unsecured credit loan, in February of last year.
In January of this year alone, the total supply amounted to KRW 183 billion, and among all banks operating loans to self-employed individuals, one out of four (25%) was made at Toss Bank. In particular, 49.8% of all loans to individual business owners were to ‘sound low- to mid-credit borrowers.’ This is thanks to the credit rating model (TSS) developed by Toss Bank, which discovered low- to mid-credit borrowers with real income and repayment ability.
As a result of embracing self-employed people and small business owners who had been excluded from the first financial sector, there was also a notable movement in the second and third financial sectors, such as savings banks and capital companies.
Customer A, who has been running a small English academy for 10 years, received a loan of 170 million won from the second financial sector to secure business funds, and then borrowed an additional 50 million won from Toss Bank. By repaying part of the existing loan, he was able to operate his business stably at a lower interest rate, and his credit score also increased by about 155 points. He enjoyed the so-called ‘credit building’ effect.
The ‘Toss Bank CEO Loan’ received a great response from individual business owners who had difficulty going to the bank when they were away from their business places, as it took an average of 3 minutes from loan application to execution. During this period, customers received a total of 600,000 loan reviews, and an average of 1,644 individual business loan consultations were conducted per day.
Transportation, mining, gig workers… Low- and mid-credit borrowers who had difficulty getting into banks are now customers at Toss Bank
As a result of analyzing Toss Bank’s individual business customer base, it was found that customers who had difficulty getting loans from commercial banks are now getting new opportunities. In addition to transportation workers who had difficulty proving their income and getting loans from major financial institutions, those in the warehouse, mining, and gig workers became customers at Toss Bank (4.2%).
By industry, wholesale and retail businesses were the most prevalent, accounting for one in three customers (32.4%). These were so-called “non-face-to-face individual business owners” who mainly operate online businesses. Restaurants (13.3%) and manufacturing (6.7%) followed.
Toss Bank analyzed these results by focusing on the continuity of business operations and regularity of income of individual business owners. The Toss Bank Credit Score Model (TSS) judges that customers with stable annual income or steady sales, even if their sales are not large, have excellent actual repayment ability, and recognizes higher credit ratings compared to business owners who have earned high income in a short period of time.
Customer B, who has been engaged in mining for three years, was recently able to borrow 40 million won from Toss Bank. The customer’s credit score is 767 points according to KCB, which is considered a mid-low credit score, but the fact that he has a sound financial transaction record such as consumption and has steadily earned sales was recognized as an additional point.
A Toss Bank official said, “Customers responded well to individual business loans, with an average of 1,644 loan applications per day,” and “We have provided practical and timely supplies to small business owners and self-employed people who have been suffering from triple hardships over the past year and need emergency business funds, and we will continue to strive to provide continuous support in the future.”
