– Development of alternative credit rating indicators using non-financial data… Used in credit review in the financial sector
– Provide data insights to small and medium-sized sellers to help them transform digitally.
– “I want to expand the credit market through data and help more people get opportunities.”
■ “Proving the value of small and medium-sized businesses with data”
ConnexioH is a fintech startup founded by Professor Lee Kyung-ho and his master's and doctoral research fellows from the Graduate School of Information Security at Korea University. The discovery of 'data absence' while working on a corporate credit rating project in the lab led to the creation of the company.
In particular, the problem of data absence in online commerce was serious. While offline stores transparently manage transaction history through card payments, online transactions do not accurately transmit actual sales information to financial institutions in the process of passing through PG companies. Since there is no transaction data, online businesses have difficulty receiving proper credit evaluations, and thus are at a disadvantage in financial support.
Starting from this recognition of the problem, ConnexioH operates two core services to utilize data to discover the potential value of small and medium-sized businesses and support their continuous growth. The first is the real-time Alternative Credit Scoring System (ACSS) that utilizes the non-financial data of e-commerce businesses. This system, which is provided to financial institutions for loan screening of e-commerce businesses, supports smooth financing for businesses. The second is 'Maemopan', a comprehensive analysis service for Naver Shopping businesses. Maemopan is a seller accelerator platform that provides comprehensive data insights from product registration to market analysis and competitor information.
ConnexioH was recognized for its technological prowess and won the Best Award in the Financial Services Commission D-Testbed Credit Rating Enhancement category in 2021, was selected for K-Fintech 30 in 2024, and was selected for SK Telecom and Hana Bank's 'AI Startup Accelerator 2nd Batch'.
■ Small and medium-sized enterprises, small business owners, and online sellers who are excluded from the financial sector
Our country's e-commerce market is growing to a scale of 250 trillion won, creating a new startup craze. In particular, the market structure is changing as new startups by the 2030 youth and the 5060 generation are increasing after retirement. However, their access to finance is still limited. New startups in their 20s and 30s are being ignored by the financial sector due to their lack of business history, and young startups without employment experience are having difficulty even getting credit cards. Retired startups in their 50s and 60s are also having difficulties with digital transformation.
The representative pointed out the problem of financial accessibility for small and medium-sized enterprises and small business owners, saying, “While financial data for offline businesses is systematically organized, data for the rapidly growing online market is not properly evaluated. In particular, the phenomenon of financial exclusion is prominent in the online commerce sector, which has high growth potential. Financial institutions prioritize risk and overlook growth opportunities.”
ConnexioH developed an alternative credit rating index that analyzes shopping mall product data to evaluate the actual competitiveness of small and medium-sized sellers in order to improve financial accessibility for small and medium-sized enterprises and small business owners.
■ Development of alternative credit rating indicators for smart store operators
Connexio H has developed a new index that evaluates real-time online business activities, moving away from the existing credit rating method centered on financial statements. It analyzes 1.13 million stores, 51,000 categories, and 380 million product information from 7 major marketplaces including Naver, Coupang, and 11st with 350,000 keywords to evaluate the actual business activities and competitiveness of businesses.
Product related indicators
A high number of likes is a signal of market demand. Therefore, even if sales are low, a high number of likes is considered to have high growth potential. The faster the delivery speed, the lower the bad debt rate, so the delivery speed is also included as an important evaluation indicator.
Business activity indicators
The higher the sales grade, the lower the non-performing rate. The level of management of product information, the completeness of product attribute information input, and the accuracy of category classification are also indicators of the business operator's activities.
Sales growth indicator
We analyze real-time sales trends and growth to focus on evaluating scalability and growth potential in the online market.
This alternative credit rating provides new opportunities for new businesses with insufficient financial statements or financial history. New businesses with many likes but insufficient operating funds, or online sellers who had difficulty getting loans despite excellent performance, can now have their actual business capabilities recognized. The validity of ConnexioH's alternative credit rating index has been verified by NICE Information Service and KCB, and is being used by KB Card, Shinhan Card, BC Card, Kakao Bank, etc. for credit screening.
“Existing credit ratings were centered on financial statements. However, online sellers, especially those who are newly starting businesses in their 20s and 30s or those who are re-starting businesses after retirement in their 50s and 60s, have difficulty getting loans because they do not have financial statements. We evaluate their business capabilities and growth potential using actual sales data,” explained CEO Lee.
■ Establishment of Non-Financial Information Specialist CB Qualification through Credit Inquiry Business
Recently, the alternative credit rating of ConnexioH is gaining attention due to the revised Credit Information Act (Act on the Use and Protection of Credit Information). The establishment of a conventional credit inquiry company (CB company) required a minimum capital of 5 billion won and a financial sector stake of at least 50%. These requirements acted as an entry barrier that made it difficult for telecommunications companies or fintech companies to utilize innovative data for credit ratings.
The revised law, which came into effect on August 14, 2024, divides credit information inquiry businesses into individual business CBs and corporate CBs, and establishes a new qualification called 'non-financial information specialist CB' that allows alternative credit rating models to be created using only non-financial data in the individual CB field. The requirement for financial company stocks was also abolished as a condition for non-financial information specialist CB qualifications. This allows companies like ConnexioH to establish CB companies using e-commerce data, and provides new opportunities to those in financial blind spots.
■ Commerce operation ends with one ‘sale board’
'Maemopan (All Daily Sales)' is a platform that automatically analyzes over 100 product optimization tips to support professional-level commerce operations. It consists of 'Maemopan Lite' and 'Maemopan Pro'.
You can select an optimized operation plan by analyzing the change in search volume according to the input method of product attribute information, and you can comprehensively check consumer interest through the increase or decrease in search volume, purchase intention through the change in the number of clicks, and competitive intensity through the price range distribution. It automatically suggests about 100 optimization plans to improve Naver Shopping's core indicators of suitability, popularity, reliability, and preference, and immediately suggests missing information or areas for improvement like a professional MD. In addition, you can analyze performance data such as sales trends, product performance, and buyer behavior patterns that are updated in real time to understand the current status of the store and derive necessary improvements.
ConnexioH receives API from Naver and provides analysis results every morning. Based on this reliability, 'Maemopan' secured 45,000 business owners in just one year since its launch on Naver Commerce Solution Market.
ConnexioH continues to innovate by presenting scientific sales strategies based on data and supporting the digital transformation of small business owners.
■ Growing into a financial assistant for small and medium-sized businesses
The representative expressed a strong will to realize social value, saying, “Our goal is to create growth opportunities for small and medium-sized businesses and balance the financial market through data.”
Konexio H, which started with a credit data service for e-commerce businesses and is providing business evaluation services for financial institutions, plans to gradually expand its scope to include business and industry analysis data services for domestic and international investment banks, evaluation and public relations services for small and medium-sized businesses, specialized evaluation services based on the needs of large businesses, and evaluation services for public sector organizations.
The representative concluded by saying, “Finance is an abbreviation for financing. Both lending and receiving are based on credit. We want to expand this credit scale through new data and help more people get opportunities. That is what we think is true innovation.”
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