Shinhan Bank has applied a “Secure New Credit Scoring” that utilizes non‑financial data such as telecom cost and public‑sector wages to recognize the lending potential of Mr. A, a 40‑year‑old homeowner who had previously found it hard to obtain credit. Mr. A has no salaried employment and it is difficult for him to prove his income; he relied on a 19.4% card loan, yet obtaining bank financing was not easy. However, through the “Super SOL Mid‑Rate Loan” program, Shinhan Bank offered up to KRW 20 million at an annual rate of 5.5–6.9%.
The “Super SOL Mid‑Rate Loan” program introduced a new “Secure New Credit Scoring” that combines non‑financial data such as telecom cost, public wages and living expenses with the existing credit scoring system. This scoring also analyzes actual living‑expense outlays in addition to the customer’s transaction history, giving a more accurate assessment of repayment ability. Shinhan Bank recorded 1,386 new loan applications and lowered the lending threshold for lower‑credit‑score customers (those below a 50th percentile credit score), while simultaneously identifying previously missed gaps in its evaluation strategy.
About 66 % of all customers are unemployed or retired (including former employees and retirees); Mr. A belongs to this group. Even so, by using non‑financial data Shinhan Bank recognized his repayment capacity and approved the loan, thereby showing that even clients who were previously difficult to lend to—such as “Sinefilers”—could be supplied with capital. This is seen as a new approach expanding the bank’s fund‑supply model for lower‑credit‑score customers.
Consequentially, Shinhan Bank increased its lending volume to 1,062 loans and total amount of KRW 10 billion by applying “Secure New Credit Scoring.” If the repayment performance of those previously difficult borrowers improves, the bank’s funding strategy for lower‑credit‑score customers will likely spread out widely. A representative from Shinhan Bank said, “We have confirmed that through this new credit scoring system we can supply capital to customers whose credit‑only systems had previously prevented them from receiving loans,” and “The bank should continue expanding its funding approach for lower‑credit‑score.”