Bank Salad enhances inclusive finance with alternative credit scoring model development

Bank Salad is strengthening inclusive finance by developing an alternative credit scoring model in collaboration with Sogang University. The fintech company is leveraging MyData, a platform that allows individuals to manage and share their financial information, to gain deeper insights into consumer behavior and creditworthiness.

The joint research project focuses on analyzing the intricate relationship between consumption patterns and individual credit risk. By utilizing the data aggregated through MyData, researchers aim to identify new indicators that can provide a more comprehensive and accurate assessment of creditworthiness, particularly for individuals who may have limited traditional credit histories.

Based on the findings from this research, Bank Salad plans to develop and implement an alternative credit scoring model. This model is expected to enhance the credit evaluation capabilities of financial institutions, potentially opening up access to credit for a broader segment of the population. The initiative aligns with the growing global trend towards promoting financial inclusion.

Professor Nam Ju-ha of Sogang University led the research team. The study, titled 'Consumption Behavior and Personal Credit Risk: MyData-Based,' underscores the potential of innovative data utilization in reshaping traditional credit scoring systems and fostering a more equitable financial landscape.