NH NongHyup Bank Launches AI Service to Automatically Request Loan Rate Cuts

NH NongHyup Bank said it has launched and is operating an artificial intelligence-based service that automatically applies for loan rate reductions on behalf of customers, allowing financial consumers to exercise their right to request a lower rate without a separate application process.

The bank said its "AI Loan Rate Care" service uses AI to submit requests to cut interest rates for customers who hold loans.

The right to request a rate cut allows borrowers to ask for a lower loan rate when their credit conditions improve, such as through higher income or better creditworthiness. The system has been criticized for low usage because many consumers are unaware of it and the application process can be cumbersome.

In December last year, the Financial Services Commission designated a MyData-based proxy service for rate-cut requests as an "innovative financial service" as part of efforts to expand inclusive finance. MyData is a system that lets individuals transmit their personal data to a destination of their choice and manage and use it based on their own decisions.

NongHyup Bank said the core of its service is that AI analyzes customers' asset and debt information using MyData and, when conditions for a rate cut are met, exercises the right on the customer's behalf. NH MyData users can access the service after giving one-time consent for proxy applications through NH All One Bank or NH Smart Banking.

After that, if the AI determines there is a possibility of a rate cut, it automatically submits rate-cut requests for loan accounts at each financial institution without any additional application, the bank said.