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| Financial Services Commission Chairman Choi Jong-ku, left, speaks at a meeting on consumer protection in Seoul, Thursday. Yonhap |
By Park Hyong-ki
The country's financial regulator will use advanced technologies such as big data to preemptively counter and prevent companies from marketing false information about their products and services, Financial Services Commission (FSC) Chairman Choi Jong-ku said Thursday.
He stressed that the stronger ecosystem and the big data would ensure consumer protection.
"We will use big data analysis to prevent consumer losses, and issue early warning signals to both companies and consumers," Choi said.
This will be needed ahead of the Fourth Industrial Revolution, which will make various financial services more accessible via converged digital platforms, he added.
Choi's remarks came at a meeting with associations representing banks, brokerages, insurance companies and mutual savings banks in Seoul.
The chairman has urged industry executives to better take care of their customers and help them make better choices in their services and products saying that protecting consumers from making "adverse selections" will help stabilize the financial market.
"It will also help companies manage risks," said Choi.
"Companies need to maintain a certain level of consumer protection as part of risk management."
The protection is especially needed for low-income households, as well as the disabled and the elderly.
Otherwise, the financial market could end up in trouble as it did in 2008 when the global financial crisis erupted in part due to weak protection and poor regulatory systems for those in the low-income bracket, the chief regulator added.
To this end, the FSC will push to speed up the passage of the revised Consumer Protection Law, which will enable it to strengthen the ecosystem and network of consumers, regulators and the market.
The law will furthermore help financial companies to boost their online or mobile sales channels and services.
However, they will have to provide more accurate information as consumers could face more risks and complications because of the mass of information.
The ultimate goal is to let all consumers feel "safe and convenient" when using various financial services both online and offline, the FSC chief said.
The regulator launched a taskforce to survey and listen to both consumers and companies late last year.
It said the taskforce will continue operating to ensure its plan for consumer protection is being carried out.
FSC Chairman Choi will also begin visiting retail branches of financial companies not only to listen to the market, but also to check whether they are providing services in accordance with its protection policy.
The FSC has previously said it will use artificial intelligence and big data with the Financial Supervisory Service to prevent financial fraud and misinformation to boost consumer protection.
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