Hello, I am Jun Ji-hye, a reporter at The Korea Times. I primarily cover financial authorities and write articles on a wide range of topics related to finance and capital markets. If you have any information to share, feel free to email me at jjh@koreatimes.co.kr, and I will review it carefully. I am committed to always doing my best to communicate with readers through high-quality articles.
From automated transfers to algorithmic lending: AI bankers reshape finance
gettyimagesbank
By Jun Ji-hye
The financial sector, traditionally regarded as more conservative than other industries, is actively expanding the application of artificial intelligence (AI) to improve customer convenience, according to industry officials Tuesday.
With banks broadening their use of AI, essential services such as transfers, debt workout support, credit limit checks and loan evaluations are becoming more and more accessible, they said.
KakaoBank, the country’s largest internet-only bank, became the first domestic financial institution to introduce generative AI-powered money transfers. The new feature, released Monday, lets customers send money by simply engaging in a natural conversation with AI — similar to interacting with ChatGPT.
The service effectively simplifies the multi-step process of entering the bank name, account number and transfer amount into a single spoken command. If the recipient has a recent transfer record, users can simply mention their name, and when a nickname is saved, even related phrases like “mom” or “dad” will facilitate the transfer.
KakaoBank plans to further apply AI to its group account feature in December, which will automatically manage tasks such as tracking and settling shared expenses.
Another internet bank, Kbank, previously launched an AI-based customer support assistant that analyzes user data and past consultations to provide personalized guidance.
Toss Bank employs AI to identify self-employed borrowers at risk of delinquency and proactively offers tailored debt relief options.
Traditional banks are also accelerating the rollout of AI bankers to enhance the customer experience.
Woori Bank, which already provides AI assistants for deposits, savings products and loan consultations, introduced an AI housing subscription adviser. Launched Monday, the service estimates a customer’s subscription score and ranking to help gauge the likelihood of securing a unit, while also recommending the most suitable subscription opportunities based on their financial and household circumstances.
In addition, financial institutions are increasingly moving toward an algorithm-driven framework, implementing big data–based credit scoring and fully automated loan assessments.
Shinhan Bank has established an AI-powered credit evaluation platform and underwriting center, using AI models to assign internal credit grades and determine loan limits and interest rates.
NH NongHyup Bank has deployed AI bankers across its 1,103 branches nationwide and integrated AI technology into its corporate lending review process.
“The full-scale adoption of algorithmic finance will allow lending decisions to move beyond conventional document-based reviews that focus on income and employment,” said an official at a major bank. “AI will be able to factor in a wide range of non-financial big data, such as consumption patterns and mobile usage records, when evaluating borrowers. In effect, both future income estimates and risk assessments become automated.”