Mobile phone industry, ¡®Financial yolk¡¯ credit evaluation to compete in market
Kang Eun Seong | esther@ | 2017-09-26 09:52:14

LG U Plus has supplied 'Mobile score' to Jeonbuk Bank on September 25, while mobile carriers are spurring a widening application of the Big Data based credit evaluation model. The picture shows LG U Plus employees introducing mobile carriers.



[Digital Times, Kang Eun-seong] KT and LG U Plus are expected to use big data technology to expand their `credit rating model` for credit business, one of their financial businesses. It is to provide information service that combines communication payment information and the like to credit evaluation based on existing financial transaction history and enables more advanced credit evaluation.

LG U Plus, on September 25, announced that it provided Jeonbuk Bank with a credit rating model called `Telcoscore`, which was jointly developed with credit evaluator Nice Credit Evaluation. In addition to financial transactions such as banking and credit cards, Telcoscore can be evaluated more credibly by adding subscription information, paying records, and payment information accumulated through the use of telecommunication companies. LG U Plus completed Telcoscore development in February and supplied it to Jeonbuk Bank, which is one financial sector. Jeonbuk Bank also announced that it will offer LG U + subscribers a discount rate of up to 3% of their basic interest rate based on their credit rating by launching a mobile-based mobile financial product `JB U + preferential product`.

KT developed a new credit evaluation model based on Big Data that reflects information on settlement of telecommunication charges prior to LG U Plus, and it is applied to K-bank users at present. "If you borrow from K-bank, the interest rate on the loan is lower than that of ordinary commercial banks, which is not a simple rate competition," said Shim Sung-hoon, manager of K-bank. "It is possible as we used the big data such as cards to calculate the advanced credit rating and loaned it based on it. If you apply a new credit evaluation model, you will not be able to make a long-term investment.¡± It is possible to grasp mobile payment tendency and past due history for decades, and there is room for further evaluation of sincerity payment and repayment ability, so that it is possible to set a more accurate grade for the lender. "

Both KT and LG Uplus are paying attention to the fact that they are expanding their operations to supply models to banks and other financial institutions in general.

A KT representative said, "Big data-based credit evaluation models currently applied to K-bank are showing interest in K-bank as well as other banks." Also, KT subscribers are more likely to use their credit rating "We are trying to expand the partnership so that it can be supplied to other banks for the benefit of subscribers because it is a benefit part."

LG U Plus is also actively seeking alliances with one bank, such as a large bank, in addition to Jeonbuk Bank. LG U Plus`s financial alliance service team practitioner emphasized that "As Jeonbuk Bank`s reference (introduction case) is secured we will be more active in expanding service provision."

By Kang Eun Seong esther@


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