The Tossbank SMB CEOs Loan, the first personal loan for businesses offered by a digital bank without a face-to-face meeting, has reached the 1-year milestone.
The volume of personal business loans has increased to KRW 1.5 trillion. Loans to low- and middle-income borrowers account for 49.8% of total loans.
In a year that was challenging for the self-employed and small businesses due to the COVID-19 pandemic, inflation, and economic downturn, Tossbank provided timely funding to the market and became a “bank with more customers and wider reach.”
In January alone, Tossbank accounted for 25 percent of total bank lending to individual entrepreneurs, with a total volume of KRW 183 billion.
The credit scoring model developed by Tossbank (TSS) has enabled it to identify low- and middle-income borrowers based on their actual income and ability to repay.
As a result, 49.8% of all loans went to healthy low- to moderate-income borrowers.
Tossbank’s quick and easy application process has also been well received by individual entrepreneurs, who tend to need help accessing banks.
The average application execution time is under three minutes.
Customers who previously had difficulty borrowing from commercial banks are finding new opportunities, according to Tossbank’s analysis of its business customer base.
Transport, warehousing, mining, and gig workers have become customers of Tossbank.
By industry, wholesale and retail account for more than one-third, followed by restaurants and manufacturing.
Over the past year, Tossbank has provided practical and timely assistance to small businesses and the self-employed who need emergency financing and will continue to strive to help.