KakaoBank is expanding cooperation with a Mongolian digital bank on alternative credit scoring and is pursuing an equity investment.

KakaoBank said on July 10 that CEO Yun Ho-young (윤호영) attended the Korea-Mongolia Business Forum in Ulaanbaatar, Mongolia, on July 9 as part of the South Korean president's economic delegation.

Yun delivered a presentation titled "Beyond Banking, Into Every Life". He introduced cases in which KakaoBank has reduced the time and cost burden needed to use financial services and expanded access to credit scoring through technology-based financial services.

KakaoBank in particular shared its experience of expanding financial access using alternative credit scoring models and artificial intelligence. It also laid out a plan to boost digital finance competitiveness and expand financial access through cooperation with Mongolia's financial market.

KakaoBank used the forum to discuss ways to cooperate with MCS Group, Mongolia's largest conglomerate. It also discussed ways to expand digital finance cooperation with local financial institutions and government officials.

A key area of cooperation is the development of an alternative credit scoring model jointly 추진 with MBank, a digital bank subsidiary of MCS Group. KakaoBank plans to cooperate in strengthening the digital competitiveness of Mongolia's financial industry by advancing credit scoring using non-financial data and other inputs.

KakaoBank also signed a term sheet with MCS Group for a strategic equity investment in MBank. It plans to expand the scope of cooperation to include product and service development, enhanced credit scoring and the building of a global digital bank network.

Yun said, "Mongolia is a market with very large growth potential for the AI finance industry, given its young population structure and strong digital infrastructure." He added, "Through strategic cooperation with MCS Group, we will build an AI finance ecosystem in which both countries grow together."