Kakao Pay and KakaBank to share harvested customer data

Kakao Pay and KakaoBank said Wednesday they will be sharing customer data to upgrade their credit scoring systems.

Kakao Pay, which offers mobile payment services, will share data related to user consumption patterns with the internet-only bank.

The bank will share data related to loans and savings.

Kakao Pay plans to upgrade its credit scoring system for post payment services. KakaoBank will upgrade its system to offer loans to people with poor credit but still the capacity to repay and thin filers, who are customers with short or insufficient financial histories.

To avoid data privacy concerns, the companies said they will be deleting personal information.

Data will be sent first to the Financial Security Institute, a third party, which will combine data collected from the companies and send the processed data back to them.

The companies said they plan to share data with other Kakao enterprises in the near future.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]