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Moreturn Secures Investment for LOANFRA, Enhancing Financial Inclusion

2024-04-18 2 min read


Moreturn Secures Investment for LOANFRA, Enhancing Financial Inclusion

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The Korean startup Moreturn, which operates the loan comparison platform ‘LOANFRA’, has received investment from TheVentures. LOANFRA started as a SaaS service designed to help lenders manage loans. It automates monthly interest calculations and notifications for numerous debtors and investors, along with payment verification and disbursement. This innovation has led to improved cost structures and positive feedback from the industry.

Since its launch in May last year, LOANFRA has attracted around 40 companies as clients in less than a year. The service has also highlighted a significant issue: many individuals seeking loans are unable to find optimal financial conditions due to negative perceptions and low accessibility in the market—an area that LOANFRA is now addressing.

LOANFRA has expanded its services to quickly provide borrowers with specific loan conditions and approval criteria, akin to those offered on traditional bank loan comparison platforms. This has reduced loan search costs and interest burdens for borrowers while increasing capital turnover for lenders.

Financial inclusion refers to the effort to improve access to financial services for low-income or underserved groups. While fintech services have enhanced accessibility in South Korea’s financial market, there is still a lack of products catering to those excluded from mainstream financial services. Currently, the non-bank household credit market in South Korea amounts to 971 trillion KRW, with marginalized groups often resorting to illegal and unfair markets. Moreturn’s LOANFRA platform seeks to change negative perceptions associated with traditional money lending and expand opportunities for those financially excluded.

Cheolwoo Kim, CEO of The Ventures, commented, “Although it’s a challenging market, the high barriers to entry and the limited competition are advantages. We value Moreturn’s intelligent strategy and rapid execution in deploying a SaaS model in this market and its significant contribution to expanding inclusive finance.”

Yoonseok Lee, CEO of Moreturn, expressed, “We aim to create specialized financial services for lower credit consumers that benefit both companies and users, leveraging our unique market data. Our goal is to minimize financial disputes and grow as an infrastructure company that manages all money lending transactions.”

[Korean Fintech Startup News]

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