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By Park Hyong-ki
Almost all financial companies are looking to find a business breakthrough through technology amid the economic slowdown and tougher regulations on their conventional services, according to industry sources.
Not only banks, credit card companies and brokerages are seeking to create easy-to-use digital services, but also they are hoping they can export or introduce them abroad as part of their overseas expansion.
KB Kookmin Bank has recently showcased its new biometric authentication system, enabling all customers to deposit, withdraw and wire money by just using the palm of their hand.
Those without a KB account can open one both inside bank branches and via its smart ATMs, using only their palm without showing identification cards such as a driver's license, or signing their names on documents.
KB Kookmin Bank will introduce this digital service nationwide in August. It is offered in Seoul and other major cities in provincial areas.
However, there are concerns over the system's security.
"Nothing is 100 percent foolproof digitally. Companies or developers have to constantly pursue incremental innovation, or upgrades, even after they introduce something new to the market," said a fintech industry source.
This is why the market will see a continuous lineup of mobile phone and virus protection software, he added.
Hyundai Card is carrying out a "global digital strategy" to export the IT system it developed for card transactions for new growth in the face of a slowdown and stricter regulations at home.
The company has exported the Hyundai-Advanced Library Card Information System (H-ALIS) to IBM Japan's EXA Systems, which will use it to launch its next-generation digital transaction system, it said.
Hyundai Card has sought to enter the Japanese financial market where it is trying to develop into a coinless society ahead of the 2020 Tokyo Olympics and the 2025 Osaka Expo.
Currently, Japan's cash use rate stands at 90 percent.
"We have been closely monitoring the changes there, while comparing our system with that of Japanese card companies. Then, we developed the H-ALIS for the Japanese market," said a Hyundai Card spokesman.
Also, it has been studying the Japanese lifestyle and culture, given that finance reflects the characteristics of people, he added.
NH Investment & Securities, a brokerage of NongHyup Financial Group, has launched a mobile application called "Namu," enabling customers to open accounts and invest in stocks.
The platform has been connected with K bank and Kakao Pay. NH Investment is one of K bank's shareholders.
The financial regulator recently suspended its review to allow KT to increase its stake in K bank as the antitrust regulator has filed a complaint with the prosecution against the mobile carrier over business irregularities.
"Despite difficulties at home, it is, at least, positive to see that the authorities are encouraging digital transformation and a startup ecosystem in finance," said another industry source.
