Financial Services Commission to Prepare a Regular Financial Supervisory System Based on Big Data

Apr 19, 2019

Financial authorities are planning to prepare Big Data-based regular financial consumer protection supervisory system. By applying Machine Learning method based on Big Data, corresponding system will figure out civil complaints on its own and create possible solutions.
Financial Services Commission (FSC) held a ‘financial consumer meeting’ at Government Complex Seoul on the 18th with Chairman Choi Jong-gu of FSC, Financial Supervisory Service, six financial associations, researchers from these six financial associations, and consumer task forces (TF) in attendance and prepared comprehensive measures for protection financial consumers.
Gist of these measures is to establish friendly and personalized financial systems to recover trust of South Korean residents towards financial industries.
FSC has decided to supervise protection of financial consumers through Big Data. Although hundreds of thousands of data related to financial consumers are received annually, financial authorities have not used them much for supervision of financial industries.
“We are going to revise our method financial supervision so that we can protect our financial consumers even stronger.” said Chairman Choi Jong-gu of FSC. “We are going to actively apply analysis based on Big Data to proactive supervision and warnings on consumer damage and improve how we respond to civil complaints as well.”

Financial Services Commission to Prepare a Regular Financial Supervisory System Based on Big Data

First, it is going to expand Big Data related to financial supervision and improve ways to extract and analyze Big Data. As part of its detailed plans, it is going to turn voice-type civil complaints into text-type civil complaints and collect data by combining financial news, SNS information, and others. Accumulated data will be analyzed on its own through a system that is applied with Machine Learning method and they will be used to predict areas with possibilities of consumer damages.
It is going to enforce proactive supervision on industries and financial institutions where there is a high chance of consumer damages happening. By utilizing information received by The Anti-Corruption & Civil Rights Commission, it is going to issue ‘civil complaint forecast’ to areas where consumer damages are expected so that it can prevent damages from spreading. It decided to establish and provide a process that can provide accurate and quick answers whenever consumers bring up or discuss about civil complaints with financial authorities.
It is also going to revise financial consumer information portal called ‘FINE’ to respond to criticisms of some people who say that it lacks information needed for process of a financial transaction and that it is difficult to find such information even if there is one. FSC is going to establish menus that provide important information for each step of a financial transaction and improve consumer interface as well.
Besides these revisions, it is going to ask for improvement in systems and homepages so that consumers can be fully informed of products and instruct financial businesses to improve consumer-related issues such as illogical collection and practice regarding personal information.
“From now on, it will be easy to see difference between financial businesses that are committed to protect consumers and those that do not.” said Chairman Choi while quoting Klaus Schwab’s THE NEXT. “We need active efforts in showing continuous interests towards consumer protection and securing trusts from consumers.”
Staff Reporter Park, Yoonho | yuno@etnews.com

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