K-Bank, KT team up to export internet banking to Mongolia www.koreatime.co.kr
K-Bank, the nation's first internet-only lender, has teamed up with KT to export its banking services to Mongolia, the company said, Sunday.
The move is part of K-Bank's efforts to expand its business overseas. KT is the largest shareholder of K-Bank with an 18.01 percent stake.
The bank said that in cooperation with Korea's top fixed-line telecom operator, it has signed a contract with MCS Group, a Mongolian conglomerate, to transfer its internet banking technologies and services.
The five-year contract is estimated to be worth up to 5.5 billion won ($4.92 million), including 2.3 billion won in consultancy fees.
Established in 1993 as an energy sector consultant, MCS Group is one of Mongolia's largest conglomerates.
It has a wide business portfolio that includes telecommunications, engineering and infrastructure, real estate, mining and consumer goods distribution.
The Mongolian enterprise has been preparing to set up its first internet lender since early last year. K-Bank and KT will join hands to help MCS Group start the business tentatively titled "M Bank."
Under the contract, the Korean duo will take part in a wide range of projects to launch M Bank, including developing a business model, operation know-how of credit risk management systems and constructing an information technology system.
KT especially will help the Mongolian lender build its own credit scoring system (CSS).
"I am pleased that we can take the first step of expanding our business to the global market, which has been one of our main goals when initiating the internet-only lending business," K-Bank CEO Shim Seong-hoon said in a statement.
"As a major shareholder of K-Bank, KT has developed its own CSS and has accumulated knowhow on the system over years," Yun Kyung-lim, head of KT's global business office, said.
"Based on the company's enhanced technology and platform in the fintech sector, the company will expand its business overseas. We will also strengthen our partnership with MCS Group."