Chairman Yoon Jong-kyoo of KB Financial Group. (Photos: KBFG)

KB Financial Group has put out a financial platform thru which the customers can find information on loans, such as the interest rates and the limits of particular loan products of its four affiliates without submitting paperwork.

The move shows that competition among banks for the provision of loans has extended to the integrated loan platform.

The financial group announced on July 1 that it has introduced the KB Easy Loan Service, in which people can use their smartphones to apply for loans from the group’s four affiliates including KB Bank, KB Card, KB Capital and KB Savings Bank.

Customers have to do is to use the Liv Mate, an integrated membership app, to pick out one of the affiliates and register the amount of loan they want. They can find out the credit loan limit on the loans offered by the affiliates, along with the interest rates and the maximum amount of loans available.
The procedure for the loan provision has also been simplified so that customers would not have to submit their earnings and paperwork, as the app can find credit information on the customers with its scrapping technology.

Officials of the group said the customers will be able to find out what is happening to their loan requests in real time and can ask questions about the loans thru the smartphones app, or arrange for face-to-face communication with the loan clerks, strengthening customer convenience.

The group’s new financial platform is likely to boost competition among financial groups over the financial platform. They have been competing since last year over the provision of loans with mid-level interest rates in the name of the Comprehensive Growth.

Customers can now find out about the loans provided by capital, savings banks and credit card firms thru the new financial platform, which is geared to taking out the loans with mid-level interest rates.

Shinhan Financial Group kicked off the competition by putting out the Ground for Smart Loans in July, last year, for the first time among Korea’s financial groups. It can be used to find out about loan limits and interest rates on by its affiliates.

Hana Financial Group followed by offering a platform that can find out information on loans and interest rates offered by its four key affiliates.

The financial platform offered by KB Financial Group can scan all affiliates of the group on their loan conditions, not limited to certain number of the affiliates.

KB Financial Group announced recently that it launched KB Financial Council, a control tower set up to manage the loans going to startups and small- and mid-sized companies by its affiliates.

The council is led by KB Financial Group Chairman Yoon Jong-kyoo, and other 11 presidents and executives from the group’s major units including KB Kookmin Bank, KB Securities and KB Investment. It plans to provide financial support to startups and venture capitals with high growth potential.

During its first meeting recently, each affiliate presented their current supporting program and future investment plan. KB Investment said it will form a 2 trillion won ($1.72 billion) venture fund to support innovative firms and new businesses established by young entrepreneurs by raising 400 billion won each year over the next five years.

The brokerage arm KB Securities currently runs Kosdaq Scale-up Investment Association to help undervalued firms listed on the country’s secondary bourse to expand their businesses through mezzanine investment. It is also operating 10 billion won worth corporate venture capital (CVC) fund raised by a KB affiliate.

A map showing how the KB Easy Loan, the LIIV Mate, is disbursed.