Internet-only Toss Bank racks up exponential growth despite pandemic
SEOUL-- Internet-only lender Toss Bank logged a rapid business expansion only nine months after its launch, backed by the convenience of mobile banking and services that target all ages, bank data showed Tuesday.
Since its launch in October 2021, the online bank has opened 3.6 million new accounts as of Monday, enjoying a fast increase in its customer base although its services are offered on a mobile app only, according to the bank's data.
New accounts increased 2.5 million in the first six months of 2022, more than doubling from a 1.1 million increase in 2021.
Toss Bank initiated its loan business last year but soon halted the service due to the government's lending quota.
Having resumed the loan services in 2022, Toss Bank's total loans stood at some 4 trillion won, with 36 percent being taken out by low- and mid-rated customers.
"Toss Bank adopted Toss Scoring System (TSS), an independently developed credit evaluation model for low- and mid-rated borrowers. Thanks to TSS, roughly one out of four such customers were able to have their credit level elevated to a high-credit tier," Toss Bank Chief Executive Officer Hong Min-take said in a media event in Seoul on Tuesday.
Toss Bank's robust performance is also buoyed by the country's social distancing scheme against COVID-19, as well as services that target diverse brackets of customers.
Of the total Toss Bank users, the largest share of 25.4 percent is made up of those in their 30s, 25.1 percent in their 20s and 23.8 percent in their 30s. Customers in their 50s and teens take up 19.2 percent and 6.5 percent, respectively.
As of end-June, approximately 9 out of 10 Toss Bank users have active banking accounts.
Toss Bank is one of the three internet-only banks operating in South Korea, along with Kakao Bank and K-Bank.
Source: Yonhap News Agency