Number of partnerships between financial investment companies and FinTech companies is on the rise.
Stock firms, which could not innovate their FinTechs due to legal and systemic limitations, have also started to have communications with various FinTech companies.
According to financial investment industry, close cooperation between FinTech companies and large and specialized stock firms is starting to take place.
Mirae Asset Daewoo held ‘Mirae Asset Digital Innovation Platform’ last June to look for promising FinTech companies. It presents tasks that are necessary for digital innovation and operates programs that will solve such tasks with FinTech companies.
Mirae Asset Daewoo recently started a pilot test for authentication service that utilizes AI (Artificial Intelligence) news curation service and voice on MTS (Mobile Trading System) and HTS (Home Trading System).
“We are currently looking for various ways to work with FinTech companies to find best ways to combine our tasks with FinTech companies’ technologies.” said a representative for Mirae Asset Daewoo. “We are looking to make investments into promising companies and help them commercialize their services as part of partnership.”
NH Investment & Securities, Hanwha Investment & Securities, and Kiwoom Securities and Shinhan Investment have formed business partnerships with a PFM (Personal Financial Investment) FinTech company called Rainist and Toss, which specializes in foreign wire transfer, respectively. Many stock firms are beginning to form partnerships in many directions as they form partnerships with large IT-based payment businesses such as NaverPay and KakaoBank and FinTech startup companies.
“For stock firms to survive in asset management market, “In order for stock firms to survive in asset management market, allowing stock firms to manage every asset is the main priority.” said an IT executive for a stock firm who requested for anonymity. “Although there needs to be interpretations by financial authorities, we are looking for ways to include simple information related to market prices of cryptocurrencies into our HTS.”
Reason why financial investment industry is taking an active approach in forming partnerships with startup FinTech companies is because it wants to prepare itself for financial environment that may change in the future due to legislation of Financial Innovation Support Special Act. It was impossible for financial investment industry to be entrusted with innovative services despite adoption of Designated Representative System due to problems with Capital Market Act and others.
As consignment of every task of financial investment industry is practically allowed due to Financial Innovation Support Special Act, which is currently pending through The National Assembly, and additional capital market’s innovative projects that are expected to be introduced by South Korean Government, financial investment industry is strengthening its partnership with FinTech companies even if it is late.
“Although we have made many attempts to form partnerships with FinTech companies, there were areas we could not attempt.” said a digital executive for a stock firm. “When Financial Innovation Support Special Act goes through, it is advantageous for stock firms to hurry and form partnership with promising FinTech companies as they can obtain exclusive business rights in particular areas for a while.”
Startup FinTech companies are also expecting partnerships with stock firms. “Recommendation service through news curation will be used in various ways especially by financial investment industry.” said CEO Joo Dong-won of XINAPSE that is carrying out pilot tests on news curation with Mirae Asset Daewoo. “We will be able to gain more competitive edge from the fact that we have obtained opportunities to apply our services through partnerships with large stock firms.”
Staff Reporter Ryu, Geunil | ryuryu@etnews.com