Korean financial holding companies may be next to join app-based banking market

2021.04.06 14:16:41

[Graphics by Song Ji-yoon]이미지 확대

[Graphics by Song Ji-yoon]

South Korean financial holding groups are prepping to add online-only banking units to join the burgeoning app-based financial market.

Korea Federation of Banks recently took survey on financial holding companies on their opinion about operating their own mobile banks to relay their consensus to the financial authority.

The federation said a majority of the respondents showed willingness to set up a fully-owned internet-only bank subsidiary.

“We are not seeking for immediate approval on launching internet-only banks but to propose to the authorities ways of offering more banking options for consumers in the long-term,” said a federation official.

Currently, two players K-Bank and Kakao Bank are licensed. Toss Bank is waiting for final approval to join as the third in the second half of this year.

Financial conglomerates in Korea have indirectly joined the market through capital investment in the players. Woori Bank is the second largest shareholder of the country’s first online-only bank K-Bank, while KB Kookmin Bank is the third largest shareholder of Kakao Bank. Hana has backed the Toss consortium.

By Pulse

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