Viva Republica, operator of Toss, will join hands with PFCT to develop lender-tailored credit scoring models using alternative credit information. The jointly developed models will be supplied to financial companies through PFCT’s lending tech solution and used in actual loan screening.

Toss said on Sept. 9 it signed a strategic memorandum of understanding with PFCT to advance credit scoring models.

The two companies will jointly develop credit scoring models for each financial company using Toss Score, an alternative credit score Toss developed with Korea Credit Data (KoDATA), and various data.

Toss will provide the data needed for model development and related consulting. PFCT will apply and run the jointly developed models for financial companies through its lending tech solution Airpack and support their use.

Financial companies can use the models to refine lending review standards used to determine loan approval, interest rates and limits. The companies said alternative information can provide an additional look at customers’ repayment ability that can be difficult to assess sufficiently with existing credit information alone.

Toss and PFCT said they expect more precise credit evaluation to strengthen financial companies’ risk management and lending review capabilities, and to help expand financial access for customers with limited credit histories.

Shin Hyun-ho (신현호), vice president of Toss' financial business division, said Toss Score and data can be used to further assess customers’ repayment ability that was not fully reflected in existing evaluations. He said Toss will work with PFCT to improve financial companies’ screening capabilities and support customers in using financial services on more suitable terms.