Busan Bank Launches AI Credit Model to Cut Blind Spots

An artificial intelligence (AI)-based “alternative credit scoring model” has been officially launched and announced by BNK Busan Bank. The new system is designed to support its existing credit evaluation method, which has mainly relied on customer financial information, such as loans, credit cards, and banking transactions. 

The new credit scoring method uses AI to evaluate not only traditional financial histories but also non-financial ones, such as utility bill records, enabling it to assess customers’ repayment capacity in a more multidimensional way. Combining financial and non-financial histories helps banks better understand a customer’s real repayment ability. This allows banks to evaluate customers more thoroughly and more holistically.  

Until now, people with limited financial records or who have experienced temporary credit card issues have often found it difficult to access loans or other financial services. Even if they are capable of repaying the loans, they may face limitations because the old method did not fully reflect their actual repayment capacity. 

With the introduction of a new AI-based model, Busan Bank aims to overcome the limitations of its previous credit evaluation system. The goal is to provide more opportunities to customers who may have been excluded under the old system.

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Jang Inho, Head of the Retail Customer Group at Busan Bank, explained that the alternative credit scoring system is not about risk management but giving people fairer access to financial opportunities and reducing the financial blind spot.