Deferred payment service is introduced for first-timers and housewives in a society without income

Input 2021.02.09 10:30

A deferred payment service operated by a platform company will be introduced for the financially vulnerable groups with relatively low credit ratings, such as newcomers and housewives. The plan is to enable postpaid payment services to be used after evaluating their repayment capacity based on non-financial data such as their purchase history. Until now, they had no income and had a hard time opening a credit card.

The Financial Services Commission held the 6th Digital Finance Council on the 9th to discuss system improvement tasks. The financial authorities decided to immediately improve 52 (70%) of the 74 tasks raised by fintech (financial technology) and big tech (large information and communications companies). Eleven cases were submitted for mid- to long-term review.

The financial authorities first decided to accelerate the provision of a small deferred payment service through the platform. In the case of postpaid payment services that simple payment companies such as Naver Pay and Kakao Pay are trying to provide, some pointed out that it is difficult to implement the service because related laws and regulations have not been established.

The financial authorities are planning to submit the small deferred payment service issue to the Innovation Finance Review Committee scheduled for this month. Financially vulnerable groups with relatively low creditworthiness can use postpaid payment services based on non-financial data accumulated by the platform.

The financial authorities decided to actively allow deferred payment services with sufficient requirements, such as consumer protection, even before the revision of related laws, through examination of the financial regulatory sandbox (regulatory deferral system).

The financial authorities are also planning to come up with a plan to rationalize the network separation regulation in the first half of this year based on discussions on the Task Force (TF) in which fintech, financial companies, and related experts participate. The plan is to devise a plan to apply network separation regulations reasonably depending on the company’s risk management ability, customer information separation, and business characteristics.

The scope of information sharing among organizations participating in open banking will be expanded. Card companies provide the expected amount of payment and payment account, while Fintech provides the balance of prepaid accounts and transaction details. Linkage between the account info service and open banking will also be promoted. This means that even fintech corporate customers can register in bulk without having to manually enter an account when registering an open banking account.

In the case of small and medium-sized fintechs who want to enter the My Data (personal credit information management business) business, it is possible to use the API (application program interface) of a relay agency.

A comprehensive plan for internalizing the financial regulation sandbox was also prepared. The financial authorities decided to introduce a’digital sandbox’. The intention is to provide a’virtual test’ opportunity based on actual financial data to fintech companies that want to verify their business ideas.

Linkage between my data industry and open banking, introduction of an integrated my data authentication system, enactment of the Fintech Fostering Support Act, establishment of a’matching platform’ between financial companies and fintech companies, corporate briefing sessions (IR) for fintech companies, support for overseas expansion, fintech companies Easing the standards for guarantees and loans to tech companies was also cited as a task.