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Unveiled ‘financial secretary in my hand’… Financial companies vs. big tech customers

Started pilot service in 17 places including Kookmin Bank

Use of financial information such as bank and card when customer consents
Analyze spending history, design assets and recommend products

Financial companies focus on asset management amid fears of market reversal
‘Overheating competition’ warning also withdraws car giveaway event
Big Tech, the possibility of pioneering a new market through convenience
“A typhoon in a teacup due to refusal to disclose information”

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▲ On the 30th, the cryptocurrency market price is displayed on the electronic board of the Bithumb Customer Support Center, a virtual asset exchange in Seocho-gu, Seoul. At a plenary meeting on the same day, the National Assembly Planning and Finance Committee voted to amend the Income Tax Act, which includes delaying the taxation of virtual assets by one year from January next year to January 2023.
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As the My Data pilot service, called ‘financial assistant in my hand’, is being implemented on the 1st, existing financial companies such as banks, securities companies, and credit card companies and big tech and fintech are expected to compete fiercely to secure customers.

My Data is a service that allows a single business operator to collect financial information scattered across banks, cards, insurance, securities, and electronic finance, if the consumer agrees, to design assets or recommend products. For example, by analyzing consumer card payment details, it notifies if the proportion of spending in a specific field is high, and analyzes asset portfolios such as deposits, stocks, and insurance to recommend products while informing them of insufficient areas.

According to the Financial Services Commission on the 30th, the five major commercial banks, securities companies, insurance companies, credit card companies, big techs such as Kakao Pay and Naver Financial, and fintechs such as Bank Salad and Finda have obtained 52 business licenses, according to the Financial Services Commission on the 30th. Of these, 17 are participating in the pilot service.

Through the MyData service, consumers can manage their information with a smartphone or PC, and view asset portfolios and expenditure details at a glance. Financial companies can identify individual characteristics of consumers through various types of data, and based on this, they can provide financial services such as asset management to keep consumers on their platforms. This is why Kookmin Bank and Woori Bank are working hard to secure subscribers, such as giving a car as a gift as a pre-booking event and withdrawing it after receiving a warning from the financial authorities of ‘overheating competition’.

A bank official said, “If we can manage customers’ financial information in an integrated way, we can provide various services such as asset management, and open a way to retain customers without being dependent on other platforms.”

However, existing financial companies such as banks and securities companies are inevitably competing with big tech and fintech with strong platforms. This means that the entire market can be surrendered to big tech and fintech. While banks are preparing services focused on asset management, Big Tech can try new financial services with its weapons of excellent accessibility and user convenience. Fintech, which is relatively small in scale, is also expected to offer different services from existing financial companies based on its technological prowess.

There are also observations that the MyData service will be just a ‘typhoon in a teacup’ as the usage rate is not high in that consumer consent is a prerequisite. An official from the financial sector said, “There may be more consumers than expected who feel that they do not have a sense of reluctance to disclose personal information or need to use the service.”

By Hong In-ki, staff reporter [email protected]

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