Internet-only banks, regional lenders expand alliances to corporate lending
Korea’s internet-only banks and regional lenders are expanding their co-lending partnerships beyond consumer credit into corporate lending, as they each look for new ways to grow their businesses, industry officials said Monday. KakaoBank and Busan Bank are preparing to launch a joint lending program for small and medium-sized businesses and sole proprietors, following a memorandum of…
Korea's internet-only banks and regional lenders are branching out from consumer credit to offer corporate lending, according to industry officials. KakaoBank and Busan Bank are planning to launch a joint lending program for small and medium-sized businesses and sole proprietors. This partnership, announced in April through a memorandum of understanding, will combine KakaoBank's nationwide digital platform with Busan Bank's expertise in assessing and managing business loans in its regional market.
While most previous co-lending partnerships between the two institutions have focused on consumer credit, the expansion into business lending marks the next logical step. The incentives for both parties are evident: internet-only banks, which have primarily relied on household lending, are looking to diversify their revenue streams by working with regional lenders.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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