In a significant advancement for borrowers, financial institutions in South Korea have started offering 'automated interest rate reduction service', allowing customers to apply for interest rate cuts across multiple lenders without needing to make direct requests. KB Kookmin Bank, for example, will introduce a service that enables users to apply for interest rate reductions on loans from various financial companies simultaneously via its app, KB Star Banking. This service automatically checks for eligibility for interest rate reductions and submits requests on behalf of the customer if the conditions are met. Other banks, such as Shinhan Bank and NH Nonghyup Bank, have also announced similar services to simplify the process for consumers.

Previously, borrowers needed to track their credit score improvements or income increases to individually apply for interest rate reductions from each lender. However, with these new automated services, clients can benefit from interest rate reductions without the hassle of constant monitoring. This innovation is a part of the financial regulatory efforts to relieve customers from excessive interest burdens and to enhance accessible finance, following a designation of the automated service as an innovative financial service by the Financial Services Commission last December.

These automated interest rate reduction applications leverage personal data to analyze changes in the borrower's credit status. When a borrower consents, the service automatically requests a reduction from the financial company based on these changes. This service, however, operates on a one-lender basis per customer. Furthermore, banks will continuously monitor the customer's credit status using the personal data, providing insights if a request for a reduction is denied and suggesting how to improve the chances for future applications. This shift aims at ensuring that borrowers do not miss out on potential interest rate reductions that they might overlook otherwise.