Empowering Financial Inclusion with Telecom-Based Credit Scoring for the First Time
SEOUL, South Korea, Nov. 13, 2024 /PRNewswire-PRWeb/ -- Telco Alternative Credit Evaluation (TelcoCB), in collaboration with South Korea's major telecommunications providers (SK Telecom, KT, LG U+) and credit rating agencies, has officially launched 'EQUAL', a groundbreaking credit scoring solution. EQUAL is a fair and equal credit evaluation solution designed to provide a level playing field for all. As the world's only telecom-based credit model, it is already being adopted by major financial institutions.
A New Standard for Nationwide Credit Assessment
EQUAL utilizes telecom data from SK Telecom, KT, and LG U+ to establish a new benchmark in credit scoring. In contrast to traditional models that rely significantly on financial history, EQUAL draws upon a range of non-financial data sources, including consistent lifestyle patterns, spending behaviors, and reliability in telecom payments, to deliver accurate credit assessments. This approach is particularly beneficial for individuals with limited financial records, or those who traditional financial institutions have underserved, as it provides them with access to new financial opportunities.
Unified Credit Profile with the Telco Profile Service (TPS)
At the core of the EQUAL technology is the Telco Profile Service (TPS), which consolidates and standardizes data from various telecom providers for high-accuracy credit evaluations. The Telco Profile Service (TPS) employs a five-dimensional analytical approach, encompassing lifestyle, spending habits, continuity, transactional capacity, and management tendencies, to generate real-time, precise credit scores. EQUAL uses telecom data that is distinct from traditional financial data, providing a supplementary, standalone credit assessment tool that, when used in conjunction with existing models, enhances the accuracy of credit evaluations.
Adoption by Financial Institutions: Expanding Access to Fair Credit
EQUAL is already being adopted by several leading financial institutions, including Korea's leading savings banks & credit card companies. These institutions utilize EQUAL for a range of credit-related services, including loan approvals and card issuance. This enables young adults, homemakers, retirees, and other previously underserved individuals to access opportunities that were previously unavailable to them. It is anticipated that this will considerably enhance financial access for approximately 13 million customers with thin files, thereby contributing to a more inclusive financial system.
A Global Model for Inclusive Finance
EQUAL is a pioneering telecom-based credit scoring solution that provides equitable financial access and addresses the limitations of traditional credit systems. By addressing data asymmetry, EQUAL facilitates access to financial services for populations that have historically been excluded, including job seekers, young professionals, homemakers, and older adults.
Moon Jae-nam, CEO of TelcoCB, stated, "EQUAL is designed to create a fair and inclusive credit evaluation environment, ensuring that all individuals have the opportunity to participate in the financial system." "We will continue to develop EQUAL to provide benefits without exclusion."
About TelcoCB
TelcoCB is a joint enterprise established by South Korea's foremost telecommunications companies and credit rating agencies. The company is dedicated to leveraging telecommunications data to develop cutting-edge credit models that facilitate financial inclusion for underprivileged communities and address socio-economic challenges associated with data asymmetry.
Media Contact
Sam Myung, Rabbiteye Co., 82 10 3859 1114, [email protected], www.rabbiteye.co.kr
Dong-Hyun Kim, Telco CB, [email protected], https://www.equal.co.kr/
SOURCE TelcoCB
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