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KB Kookmin Bank

KB Kookmin Bank is a subsidiary of KB Financial Group and its business area is banking, securities, insurance, and credit card.

KB Kookmin Bank,
the first Korean bank which developed a predictive model to measure possibility of normalization of loan

Expects to decrease imprudent overdue loan notices and do customized CRM(Customer Relationship Management) through the predictive model

“Loan management was focused more on bank’s soundness than customer’s rehabilitation until now. We will reform our bank to the one which sets a good example of loan management to unburden customers’ pressures and worries about their loan, and communicates with customers through this model”

 - Yong-deok Lee, KB Kookmin Bank Vice President


Needed to develop credit management strategy and newly applicable indicator to enhance profitability


PANIROIS developed “NPV Overdue Loan Collection Model” as analyzing the Big Data of KB’s internal credit transaction information and customer’s characteristics. This Model predicts the possibility of normalization of loan, so then it provides overall analyzation of overdue loan customer’s financial transaction history and the characteristics of loan products. It automatically measures predictable sum amount of recoverable loan by classifying loan from 1 to 10 rating according to the collection level of difficulty of overdue loan, and predicting the loan management cost for later on. This Model can be applied to bank’s overall soundness management as it predicts the possibility of loan recovery of individual loan, corporate loan, and special loan.


KB Kookmin Bank is expected to be able to manage customized customer management and to decrease ill-considered overdue loan notices by applying this predictive model for the normalization of overdue loan. Loan Management can be pushed ahead with elaborate classification of good and bad loan at the starting point of overdue, because about 70% of overdue loan is recovered in 5 days and only 3% of bad overdue loan is not recovered for more than 30 days. For example, KB Kookmin Bank can decrease its pressure on overdue loan by leading customers to “self-cure” their loan without overdue notice for a certain period of time, and postponing legal loan collection activities, such as auction and lawsuit, for a certain period of time for customers who have high possibilities to recover their loan in short period of time

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