BNP Paribas Cardif Life Insurance announces that it signed a Memorandum of Understanding (MOU) with Fount Finance, a mortgage fintech company, to activate credit life insurance with the aim of improving loan management services in the mortgage sector. The two companies plan to establish a cooperative business model for credit life insurance in Korea.
BNP Paribas Cardif Life Insurance is the life insurance subsidiary of BNP Paribas Cardif in Korea, the insurance arm of BNP Paribas, and a world leader in creditor insurance. Fount Finance is a subsidiary of Fount, which leads the domestic robo-advisor market. Fount Finance’s on/offline mortgage loan comparison service was recognised as innovative finance by the Financial Services Commission in June.
Through this business agreement, the two companies plan to improve loan management services in the housing mortgage loan sector, which account for the largest share of household assets and support customers’ safe loan repayment journey. Fount Finance will provide customized mortgage loan comparative estimate services to users and help them with the safe loan repayment process using its ‘on-offline mortgage loan comparison platform. In the process, Fount Finance will link BNP Paribas Cardif Life Insurance’s credit life insurance in its service to guide users to safely repay their loans in the event of an unexpected accident.
Jonathan Oh, the President and CEO of BNP Paribas Cardif Life Insurance said, “The core of this business agreement is to create a healthier loan ecosystem by linking ‘Credit Life Insurance’, that supports asset maintenance with loan safety net, and ‘Housing Mortgage Loan Comparison Platform’, that improves customer accessibility. The two companies plan to activate credit life insurance as a basic measure to hedge the increased risk of outstanding loans due to expanded credit amid high-interest rates, and act as a protective mechanism for the financial consumers. We hope that this collaboration to provide a quick and appropriate customer protection measure will be a good example of innovative financial service that has been given the opportunity to test the market for a certain period of time in recognition of its innovation.”
Meanwhile, BNP Paribas Cardif Life Insurance, which has been providing creditor insurance in Korea for more than 20 years, operates the Credit Care Program to provide integrated support for credit management. This program includes the ‘Credit Care Guide’, which gives useful information on safe borrowing and wise credit management, and the ‘Credit Care Academy’, focusing on financial education on credit management for the financially vulnerable.