Thanks to the invigoration of fintech companies’ loan comparison services, it is estimated that non-banking financial institutions have reduced their annual commission burden by more than 10 billion won. (Image courtesy of Yonhap)
SEOUL, Oct. 17 (Korea Bizwire) – Thanks to the invigoration of fintech companies’ loan comparison services, it is estimated that non-banking financial institutions have reduced their annual commission burden by more than 10 billion won.
According to the parliamentary inspection data submitted by the Financial Supervisory Service on Monday, the average commission rate that the nation’s five major loan comparison platforms, namely Toss, Kakao Pay, Naver Pay, Finda, and Banksalad charged non-banking financial institutions has been on a downward trend, decreasing from 1.56 percent in 2020 to 1.49 percent in 2021, 1.48 percent in 2022, and 1.44 percent in the first half of 2023.
Considering that the aggregate value of new transactions mediated through loan comparison platforms in the first half of this year was 5.96 trillion won, the amount of commission that non-banking financial institutions could save by the end of this year would reach 14.32 billion won compared to the 2020 figure.
The first-half commission was equivalent to half of the commission that non-banking financial institutions paid to offline loan solicitation businesses (2.62 percent for a 10 million won loan).
Assuming that among the platforms’ first-half transaction amount, 5.96 trillion won was generated offline, the commission burden on non-banking financial institutions can be assumed to be larger by 70.37 billion won.
In contrast to the decline in the average commission rate of non-banking financial institutions, the average commission rate of banking institutions increased to 0.34 percent in the first half of this year from 0.22 percent in 2022.
Industry watchers stated that the development of loan comparison services appears to have had a more positive impact on non-banking financial institutions than on banking institutions, which have a limited number of players compared to the former.
M. H. Lee (mhlee@koreabizwire.com)
