Partnership focuses on credit review, transparency, and phased deployment rather than full automation
Naver Cloud and JB Financial Group have signed a memorandum of understanding to explore how artificial intelligence can be applied to core banking operations, with a focus on corporate lending and internal decision-support systems. The agreement comes as Korean financial groups face growing pressure to improve efficiency while maintaining regulatory compliance and risk controls.
The collaboration includes JB Financial Group affiliates Jeonbuk Bank, Gwangju Bank, and JB Woori Capital. Rather than deploying AI broadly across customer-facing services, the partners said they will concentrate on backend processes such as loan consultation, screening, and post-loan management.
Scope of the Partnership
JB Financial Group plans to review AI use in stages, starting with corporate lending, where documentation volume and analytical complexity are highest. The group said the aim is to enhance productivity and consistency without weakening internal controls or compliance standards.
At the consultation stage, Naver Cloud’s HyperCLOVA X large language model will be used to extract and structure information from 상담 records and related documents. Automating this process is expected to reduce manual handling and improve data consistency before cases move to screening.
Phased Adoption Across Lending Operations
In the screening phase, AI tools will be used to summarize and analyze loan applications, financial statements, and transaction data. The companies stressed that AI will act as a decision-support tool, with final judgments remaining with human credit officers.
A key area under discussion is whether AI can help strengthen accountability by automatically generating structured explanations for approval or rejection decisions after screening. Such records could improve auditability and internal review, areas of growing importance as regulators scrutinize algorithmic decision-making in finance.
Use of AI in Pre-Screening and Data Structuring
The partners said the project will prioritize transparency, traceability, and explainability — reflecting regulatory expectations around AI use in financial services. Initial discussions will center on defining governance rules, data handling standards, and clear boundaries between automated analysis and human judgment.
A Naver Cloud official said the company is focusing on AI designed for regulated industries. “We are developing AI technologies that reflect the characteristics and constraints of the financial sector, with the goal of supporting digital innovation while improving operational efficiency,” the official said.
The partnership illustrates how Korean banks are approaching AI cautiously, testing targeted use cases that align with risk management frameworks rather than pursuing rapid automation across customer services.
Why it matters (for banks)
- Regulatory pressure: Financial authorities are increasingly focused on explainability and accountability in AI-assisted decisions.
- Cost control: AI-assisted document processing and screening could reduce operational costs without changing approval authority.
- Risk management: Automating rationale generation may strengthen audit trails and internal compliance reviews.
- Competitive balance: Banks are adopting AI incrementally to avoid regulatory or reputational risks tied to opaque models.
