South Korea reports 20m subscriptions to open banking service

South Korea’s financial regulator has reported that 20 million people are using its open banking services.

70% of South Koreans are using open banking services

Open banking services launched in the country back in December 2019. So far, 72 companies currently offer open banking related services in South Korea, including commercial banks and fintech firms.

South Korea first piloted the system in October 2019. Participation from local lenders saw Woori Bank, NH Nonghyup, KB Kookmin Bank, Shinhan Bank and KEB Hana Bank take part.

After the conclusion of the pilot phase, the Financial Services Commission (FSC) reported 5.5 million accounts registered.

“Through the open banking system, local lenders have taken a leap forward as an advanced banking platform,” says Sohn Byung-doo, vice chairman of the FSC.

Byung-doo spoke at an open banking seminar held by the regulator. He delivered “congratulatory remarks” amid “vibrant discussions” on how to further the programme.

“The ease of access to payments networks has enabled fintechs and Big Techs to come up with more innovative financial services in more efficient ways,” he adds.

“For consumers, the increased convenience of being able to use a variety of financial services in a single app and not having to switch between different platforms offers them more choice.”

The FSC is planning to expand open banking from the last quarter of 2020.

Seven second-tier banks are to be activated for open banking next, including Korea Federation of Community Credit Cooperatives and Korea Post.

The FSC is also looking into allowing card issuers access sometime in 2021.