Standard Chartered Bank (SCB) Korea has forged a partnership with Viva Republica-operated financial services app Toss to launch a short-term lending programme.
As part of the agreement, SCB Korea has outsourced the credit evaluation process to fintech firm Toss – the first bank to do so in the country.
Under the personal loan programme, SCB will receive applications from the Toss’ mobile app.
Toss will be tasked to evaluate the financial credit of a potential borrower. The entire process will take only three minutes.
This credit assessment process includes a review of an applicant’s transaction history on bank accounts and credit cards.
SCB is aiming to issue as much as KRW5bn ($4.2m) to consumers over the next two years as part of the pilot project.
A customer can borrow up to KRW500,000, which should be repaid in one month.
SCB Korea head of digital and personal banking Cho Hyung-ki said: “We hope our new lending programme would be a springboard for innovative financial services in partnership with fintech firms.”
Recently, Standard Chartered-backed virtual bank Mox officially launched operations in Hong Kong.
Earlier this month, the bank rolled out an online remittance service in India.
In the same month, Standard Chartered unveiled plans to merge several businesses as part of its group restructure.
Last month, Standard Chartered renewed its title sponsorship deal with Singapore Marathon.
Standard Chartered Korea tapped PayKey to launch a mobile banking keyboard solution featuring open banking.