It Is Predicted That Many IT Businesses Such As Payment Gateways Will Participate
Competition to obtain a license to become first ‘South Korean Charles Schwab’, which is an internet-only bank, is almost coming to an end. While application to receive a screening license to become internet-only bank is getting finished on the 1st, it is expected that fierce competition between 3 businesses will take place. Although general outline of participants is known, financial institutions and IT businesses are still contemplating on which consortium to join while bid to participate is coming to an end.
Many businesses are fiercely trying to read each other’s mind until the end as payment gateways (PG) and variety of IT businesses are thinking about participating indirectly or as a partner. A business that is able to obtain screening license will seize the title of being called South Korea’s ‘First Internet-Only Bank’.
According to industry, consortiums that decided to participate as of the 30th are Kakao Bank Consortium, Interpark Bank Grand Consortium, KT Consortium, and 500V Consortium.
Financial authorities’ aim to give license to IT businesses rather than banks and induce establishment of internet-only bank lost its meaning as many variety of businesses began to participate.
Industries are choosing Kakao Bank Consortium as the one that is most likely become the first internet-only bank. Some are even saying that financial authorities are mediating provisions of many evaluations so that it can grant a license to Kakao.
“In a recent meeting that was held for CEOs of financial businesses, some are saying that Kakao Bank suits the best as the ideal internet-only bank that financial authorities are pushing for. It has many advantages over other consortiums because it has strong social network service (SNS) platform and looks for other business model such as Bank Wallet Kakao and others that are different compared to traditional bank channels.” said one high-rank official in financial industry.
Foreign global businesses Tencent and eBay Korea also finalized their decisions to join Kakao.
However it is impossible to know who will become South Korea’s first internet-only bank as variety of participants began to emerge. Each consortium has different advantages and characteristics over other consortiums. Kakao Bank has SNS-based platform and 40 million users. It is heard that KB Bank, which is known as a major institution for small-loan finance, had joined Kakao and will start SNS-based medium-rate loan.
KT Consortium also won over variety of allies to develop Fintech 408 business.It chose Woori Bank, which developed South Korea’s first internet-only bank platform, as its partner at earlier time and line up for battle that will make KT Consortium expanding Big Data 78 and Fintech-based business easier. Some are evaluating that KT Consortium has the highest competitive edge from an aspect of finding business as KG Inicis, KG Mobilians, Danal and others also joined KT Consortium.
Interpark Consortium won over the most partners and finished selecting businesses in distribution, online payment, and finance businesses that will participate. Although it is relatively weaker than other banks in retail banking department, IBK Bank that is distinguishing itself in Smart Finance area such as ‘One Banking’ and others and SK Telecom that has the best shares in telecommunication market are joining Interpark Consortium. NHN Entertainment, which started NFC-based mobile payment business, GS Home Shopping that is a leader in distribution field, BGF Retail and others also joined Interpark Consortium.
On the other hand, 500V Consortium is considerably getting weaker compared to other consortiums as Korea Federation of Small and Medium Businesses that initially agreed to join 500V decided ultimately not to join.
“After looking at information related to establishment of internet-only bank and the purpose of investments, we ultimately decided not to join 500V Consortium.” said Korea Federation of Small and Medium Businesses. As Korea Federation of Small and Medium Businesses, which has network of South Korea’s all small businesses and medium businesses, decided to withdraw, it is expected that 500V will take a blow from business planning aspect that has the most additional points.
“Through establishment of internet-only bank, we will be able to prepare a place that can innovatively improve financial services for all citizens of South Korea. We are currently looking at a way we can grant license up to two consortiums by end of the year.” said a person that is affiliated with Financial Committee.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com& Staff Reporter Park, Sora | srpark@etnews.com
