Jeju Bank said on April 14 it will participate in a pilot project for an AI-based credit scoring model (SCB) tailored to small merchants 추진 by the Financial Services Commission. It is the only regional bank among seven participating lenders.

The commission plans to complete revisions to related rules and system development by August and begin SCB-based loan screening centered on pilot operators. It plans to expand participation across the financial sector.

SCB, short for Small-Business & Self-ownership Credit Bureau, is a credit assessment system that uses non-financial data such as sales, industry and commercial areas to evaluate small merchants' future growth potential using artificial intelligence. It is designed to address limits of existing assessments focused on collateral and financial histories.

In particular, the Jeju region has a high share of food service, lodging, wholesale and retail businesses, so the impact of using non-financial data is expected to be large. Jeju Bank plans to use the SCB to build a screening system that selects borrowers with high growth potential.

It also plans to combine the SCB with its internally built ERP-based strategic credit scoring model and its ERP banking service, DJ Bank, to expand small-merchant financial services nationwide, centered on non-face-to-face and digital channels.

A Jeju Bank official said, "As we are the only regional bank participating in this pilot project, we will ensure the realities and growth potential of local small merchants are reflected in the financial field." The official added, "By combining our ERP-based embedded finance experience with the SCB, we will provide more practical financial opportunities."