By Kim Bo-eun
Shinhan Card will introduce its in-house developed digital credit rating system in emerging markets such as Kazakhstan and Vietnam, the card firm said Wednesday.
These markets are swiftly adopting digital technology, but have a poor credit infrastructure, which is necessary for financial institutions to rate potential customers' credit history.
Shinhan Card plans to introduce the mobile credit rating system through its subsidiary Shinhan Finance in Kazakhstan in late June.
The mobile system will enable financial companies to look at customers' data, including financial transactions, on their smartphones.
Shinhan's team plans to further develop its digital credit rating model in cooperation with fintech startups.
It also has another credit model, which it plans to introduce overseas soon.
This model was jointly developed with the Korea Credit Bureau (KCB) and Seoul National University's psychology department.
It estimates credit levels based on a survey that looks into customers' financial behavior and attitudes.
Shinhan signed an agreement with the KCB earlier this month to launch this "credit tendency" evaluation model abroad.
The bank will introduce the model through the Shinhan Vietnam Finance Company, the former Prudential Vietnam Finance Company.
It also plans on working with Vietnam's No. 1 social media platform Zalo on enhancing the model.
This is part of Shinhan Financial Group's plan to lead innovative finance and achieve Shinhan Card's digital vision.
"Our overseas subsidiaries will be able to conduct more systematic operations, based on Shinhan Card's know-how on analyzing big data and its digital competitiveness," a Shinhan Card official said.
"We plan to continue to drive the qualitative growth of overseas subsidiaries."
Shinhan is currently the number one player in the local card firm market.