The Online Investment-Linked Finance Association announced on the 14th that cumulative volume of personal credit loan linkage investments between online investment-linked finance (P2P) companies and savings banks surpassed 500 billion won. According to association data as of the 3rd, cumulative loan volume reached 502.2 billion won, with an average loan amount of 14.89 million won per transaction. This linkage investment model, designated as an innovative finance service in May last year, combines fintech firms' big data-based credit assessment capabilities with savings banks' funding capacity to supply mid-rate credit loans to mid-to-low credit borrowers.
Loan Statistics Show 11.95% Average Interest Rate and 0.75% Delinquency Rate
The association reported an average annual interest rate of 11.95% and a delinquency rate of 0.75% for linkage loans as of the 3rd. More than 95% of linkage loan users are mid-to-low credit borrowers in the bottom 50% of credit score distribution, with an average borrower credit score of 739 points. The average loan amount per transaction stands at 14.89 million won.
Platforms Distribute Linkage Loans Through Toss, Finda, and Naver Pay
Linkage loans between P2P firms and savings banks are currently provided through loan comparison platforms including Toss, Finda, Banksalad, Naver Pay, and Kakao Pay. Financial consumers compare interest rates and loan limits across multiple financial institutions on these platforms, then directly select and apply for P2P loan products.
Savings Banks Adjust Linkage Investment Due to Household Loan Volume Caps
Linkage investment amounts are reflected in the respective savings banks' household loan volumes and are subject to total household loan volume management. Some savings banks that have reached their volume caps have suspended new linkage investments or adjusted their transaction volumes. Hong Jae-moon, chairman of the Online Investment-Linked Finance Association, stated: "Although the scale of the P2P sector remains very small within Korea's household loan market, it demonstrates the possibility of providing new financial opportunities to mid-to-low credit borrowers while managing soundness. The association and industry will expand the supply of sound mid-rate loans while adhering to financial authorities' policy directions and consumer protection principles."
FAQ
What is the cumulative volume of P2P-savings bank linkage loans in Korea as of the 3rd?
The Online Investment-Linked Finance Association reported cumulative volume of 502.2 billion won as of the 3rd, with an average loan amount of 14.89 million won per transaction.
What is the average interest rate and delinquency rate for these linkage loans?
The average annual interest rate is 11.95%, and the delinquency rate is 0.75% as of the 3rd.
Why are some savings banks suspending new linkage investments?
Linkage investment amounts count toward savings banks' household loan volumes under total volume management. Some banks that reached their caps have suspended or adjusted new linkage investments.
