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| Shinhan Card CEO Lim Young-jin speaks at the company's 12th founding anniversary ceremony, held at its headquarters in central Seoul, Oct. 1. / Courtesy of Shinhan Card |
By Kim Bo-eun
Shinhan Card said Monday that Shinhan Finance, its subsidiary in Kazakhstan, has launched a mobile data-based alternative credit scoring system, a model the card firm plans to introduce in other emerging markets.
Alternative credit scoring is used in markets that lack traditional data such as customer credit reports. It uses non-financial data such as digital footprints to rate the customer's credit.
Shinhan Card developed the system with fintech firm CrePASS, which specializes in alternative credit scoring. The collaboration is part of the government's initiative to have financial firms work with fintech startups.
Shinhan's mobile application is able to gather data and process it. The app develops a rating model based on data such as the model of the mobile phone and whether the person uses the calendar or Bluetooth function.
This model is proving useful for Shinhan Card's subsidiaries in countries where credit bureau data and rating systems are yet to be introduced. The company also plans to apply the model to retail loans and other areas.
"We plan to apply the system to other subsidiaries in addition to Kazakhstan," a Shinhan Card official said. "We plan to innovate beyond the card business, with the strategy to become a multiplayer."
Shinhan Card has subsidiaries in India, Myanmar and Vietnam.
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