Naver Pay partners with 10 financial firms on housing loan platform

Naver Pay signs are seen at cash counters of stores in these two edited photos. Courtesy of Naver

Naver Pay has partnered up with 10 financial services firms in launching a new online platform that allows borrowers to compare loan interest rates when they transfer housing loans, the company announced on Friday.

The mobile payment arm of internet giant Naver said the platform will be available sometime this month.

It said the service will be made possible in cooperation with lenders nationwide and insurers, as well as other financial service providers.

Among the 10 are major banks Shinhan Bank, Woori Bank, Hana Bank, NH NongHyup Bank, Industrial Bank of Korea (IBK) and Standard Chartered Korea.

The partnerships, according to Naver Pay, are noteworthy considering conventional, offline-based banks largely dominate the housing loan market and have corresponding knowhow and expertise, whereas Naver Pay is a newcomer.

Naver Pay has been operating a platform for other types of loans, but not housing loans.

In addition, tech firms such as Naver have been in heated competition with banks to take the lead in the digital banking industry.

The new platform addresses growing demand from borrowers seeking lower interest loan products at a time of costly borrowing rates.

The benchmark interest rate stands at a near 14-year high of 3.5 percent since January last year.

The platform will focus on comparing the loan repayment interest rates of each lender, for borrowers to switch their loans from one lender to another that offers the most competitive interest rates.

Previously, banks remained poles apart compared with big tech and fintech firms over the introduction of the new service.