KakaoPay said on Tuesday it will start an automatic rate-cut application service that captures the best time to lower a user’s loan interest and applies automatically. It will accept applications from Feb. 4 and launch the service on Feb. 23.

The automatic rate-cut application service lets users register once. The system detects improvements in their credit status and automatically submits a rate-cut request on their behalf at the optimal time to lower interest.

The core strength of the service is the full automation of the application process. When users first register, they choose one reason for applying, such as a higher credit score, higher income or reduced debt. After that, the system automatically selects the most suitable reason based on MyData-based information and proceeds with applications at the shortest cycle.

It also strengthened post-application management. If a rate-cut request is rejected, the service analyses the financial company’s reason for non-acceptance and provides specific credit improvement guidance to raise the chances of approval in the next application.

KakaoPay’s data analysis capabilities are a key driver of the service, after it became the first in South Korea to surpass 20 million MyData subscribers in April last year.

KakaoPay said, "The automatic rate-cut application service is designed to ensure users do not miss changes in credit and to secure their rights at the fastest timing," adding, "Through data-based financial innovation, we will build a user-centred financial ecosystem across the entire process, from loan execution to post-loan rate management."