Open banking is a service in which bank account data can be shared through secured methods. It provides flexible services, allowing users to gain access to bank accounts at any time through any affiliated banking apps. Currently, mobile banking service users in South Korea should use apps dedicated to each bank.
Officials from the Financial Services Commission, the Korea Financial Telecommunications and the Clearings Institute and Financial Security Institute told banks and fintech firms during a briefing session on Thursday that an open banking system would be tested to provide an all-in-one banking service for commercial banks.
"Open banking features should be expanded ... to provide features such as the search and utilization of financial products," Financial Supervisory Service's Financial Innovation Planning Team head Kwon Dae-young told reporters.
The test operation will open up a digital transaction network to fintech firms so that users can gain access to banking services provided by every bank by using any mobile banking app. The transaction fee will be lowered.
Financial authorities designated 18 commercial banks, including two online-only banks, to provide information such as balance and transaction records to fintech companies which will provide integrated mobile banking services 24 hours a day.
Currently, South Korea's digital banking service network shuts off for an hour from 11:30 p.m. (1430 GMT) for network maintenance and updates. Financial authorities plan to reduce the time for the maintenance to 20 minutes.
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