Kim Byeong-chil, director of the Digital Financial Supervision Bureau of the Financial Supervisory Service, made this announcement at the ’10th International Business and Finance Conference’ held at Haevichi Hotel & Resort in Seogwipo, Jeju on the 18th. This means that traditional financial operations alone can no longer be a major player in the changing financial market.
|
Director Kim gave a lecture on the subject of’Directions of Digital Finance Supervision’ on this day. Director Kim diagnosed that digital finance is in its infancy, but numerically, it is already deep into the financial life of consumers. He said, “Even if you look at the most basic deposit and withdrawal in your financial life, 64% of all channels are done through the Internet, and 91% are viewed through the Internet.” It is showing growth.”
“As a result, Internet banks are growing faster. In the case of Kakao Bank, it has grown 4.5 times in 3 years after obtaining approval in April 2017, and K Bank has increased by 3.7 times. There is a threefold difference,” he said.
Director Kim explained that according to the rapid growth of digital finance, the direction of supervision is also systematically structured. In particular, it actively supports to achieve digital transformation, while promoting risk management in a balanced manner so that user protection can be incorporated.
Director Kim said, “As digital finance has grown rapidly recently, conflicts of interest in the products offered by the platform have begun to arise. I bought a P2P product on one platform, and there was a controversy over whether the product was sold by’platform or P2P’. “Currently, the supervisory authority is looking at how to view the sales behavior of the platform as a supervisory task.” Said.
“We are also watching whether the customer recharge payment market is safely managed as well as post-paid payments,” he said. I said.
He also advised that Internet banks, which have rapidly expanded in size, need additional growth models and consumer protection. Director Kim said, “Internet banks have been targeting consumers with convenience as a weapon so far, but it will be a question of what kind of growth model can be found for the second stage of growth.” We are also watching whether we will realize inclusive financing for loans and the underprivileged.”
With regard to regulatory liberalization, which Big Tech and financial companies are raising their voices, they expressed their position that they are still at a crossroads. Director Kim said, “There is still a crossroads regarding the regulatory opening. If we view the bankruptcy and withdrawal of financial companies as a natural phenomenon, there is no need for regulation, but if it is the opposite, regulation is essential.”
He added, “The asset price and financial companies still see it as a big issue even if only one P2P company collapses,” he said. “It seems that there is still a situation to move within the regulation.”