Kbank has moved to bolster its loan competitiveness by upgrading its credit evaluation system for sole proprietors.

Kbank said on Tuesday it upgraded its SOHO credit scoring model (CSS). It said the changes reflect shifting business conditions and customer characteristics, and improve analytical efficiency using AI technology.

The company said the upgrade comprehensively reflects factors including business operating history, business information and transaction data. It said this will allow it to respond more flexibly to risks stemming from economic trends or shifts in industry-specific characteristics.

Alongside the model improvements, it revamped its data analysis system. It built an AI-based automation process for analysis and inspection to handle large volumes of data and streamline repetitive analytical tasks, and strengthened its framework for model monitoring and operating strategy management.

A Kbank official said, "Since sole proprietor finance combines individual and business characteristics, a sophisticated credit evaluation system is important." The official added, "We will continue to strengthen the soundness and competitiveness of sole proprietor loans through data- and AI-based upgrades."