Hana Bank will introduce a one-stop, non-face-to-face service for guaranteed loans for small merchants and sole proprietors in partnership with the Credit Guarantee Foundation Federation.

Hana Bank signed a business agreement with the federation to promote non-face-to-face guaranteed loans. It said on Monday it will roll out from September a service on the Bojeungdream app that allows the entire process, from applying for a guarantee to loan execution, to be handled remotely.

The service applies Hana Bank’s banking-as-a-service (BaaS). Customers can complete guarantee applications, document submission, loan agreements and loan execution at once through the federation’s Bojeungdream app without visiting a branch.

When customers apply for guarantees and loans on the Bojeungdream app, required documents are automatically sent to the bank through public MyData. Loan agreements and execution are then processed on the Bojeungdream app linked to Hana Bank’s system.

Hana Bank plans to use the service to reduce branch visits and document submission procedures that occurred in existing guaranteed loan processes, improving financial access for small merchants and sole proprietors.

It also plans to support guarantee fees for customers who apply for guarantees and loans through the service.

Seo Yu-seok (서유석), a deputy president of Hana Bank’s Corporate Group, said he expects sole proprietor customers will be able to use financial services more easily and conveniently. He said the bank will work with the federation to improve financial access for small merchants and expand inclusive finance.