Jeju Bank is accelerating its transition into a digital platform bank by deploying a proprietary Artificial Intelligence (AI)-based corporate evaluation system. By managing more than half of its total corporate loans through data algorithms, the bank is being evaluated as having transformed into a 'Tech-fin' leader, transcending the traditional limitations of a regional financial institution.
The Rise of AIRS: Data Over Intuition
According to financial industry sources on March 15, 2026, Jeju Bank is operating the "Advanced Internal Rating System" (AIRS) as its core credit infrastructure. Unlike traditional methods, AIRS calculates the credit ratings of corporate borrowers by comprehensively considering not only financial metrics but also non-financial factors such as industrial, operational, and management risks.
The most striking aspect is the scope of its application. As of the end of 2025, the volume of loans utilizing AIRS reached 3.41 trillion KRW, accounting for 53.8% of Jeju Bank’s total loan portfolio of 6.33 trillion KRW. This signifies a pivotal shift where the "sovereignty" of corporate credit assessment—the heart of banking—has effectively moved from human judgment to digital systems.
Strategic Focus on System Reliability
Recognizing that the accuracy of AIRS directly impacts the bank's overall loss provisions and financial soundness, Jeju Bank has designated "Internal Credit Rating Measurement via AIRS" as a Key Audit Matter (KAM). This indicates a high level of systemic confidence, as external auditors now focus on the logic and data output processes of the AI system during their reviews.
To support this digital evolution, the bank has significantly increased its technological investment. Last year, Jeju Bank’s acquisition of intangible assets, including software and system development, reached approximately 6 billion KRW. This represents a 56% increase from the 3.9 billion KRW recorded the previous year—an exceptionally aggressive IT investment for a mid-sized financial institution.
The Synergy of Data: Collaboration with Douzone Bizon
Industry experts are also closely watching the strategic partnership between Jeju Bank and Douzone Bizon, a leading specialist in Enterprise Resource Planning (ERP). Douzone Bizon is classified as an entity with significant influence over Jeju Bank, forming a core pillar of its governance.
By integrating Douzone Bizon’s vast repository of corporate data with the AIRS algorithm, Jeju Bank has successfully launched specialized financial services for Small and Medium-sized Enterprises (SMEs). This synergy allows the bank to assess the creditworthiness of small businesses more accurately than traditional banks, providing a competitive edge in the niche SME market.
A Blueprint for the Future of Regional Banking
A high-ranking official in the financial sector commented, "For a regional bank to manage more than half of its total credit through an advanced digital system is a pioneering model in the Tech-fin era. Jeju Bank is demonstrating unique digital competitiveness by combining the infrastructure of Shinhan Financial Group with the rich data of Douzone Bizon."
As Jeju Bank continues to refine its AI capabilities, it is setting a new standard for how regional banks can survive and thrive in an increasingly digital landscape. The "Jeju Model" suggests that the future of banking lies not in physical proximity to customers, but in the depth and precision of the data algorithms that serve them.
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