In line with the enforcement of the Financial Consumer Protection Act (hereinafter referred to as the Financial Consumer Protection Act), major commercial banks have stopped selling non-face-to-face products and AI (artificial intelligence) services one after another. It is in the form of strengthening the protection process in order to avoid the’No. 1 violation’ of the prohibition law, which has been in effect from today.
According to the financial sector on the 25th, major commercial banks stopped selling new products through kiosks (unmanned terminals) at once.
First, KB Kookmin Bank will temporarily suspend the service of opening a deposit and withdrawal passbook in Smart Teller Machine (STM) from today to the end of next month. STM is an intelligent automated teller machine (ATM) that allows you to receive a passbook and change your password without looking for a bank counter. Accordingly, Kookmin Bank decided to upgrade the system such as e-mail delivery.
Woori Bank will stop some kiosk functions, such as new sales of deposits and funds through kiosks, and issuance of new credit cards, from the 25th, and then resume sequentially from next month. Woori Bank currently operates about 40 kiosks.
From today, NH Nonghyup Bank will also stop new subscriptions to non-face-to-face fund products and pension savings fund accounts. The timing of resumption of sales was not announced. The Nonghyup Bank explained that it has stopped some fund services to comply with laws and regulations related to the enforcement of the gold law.
Hana Bank also suspends new transactions for deep learning artificial intelligence robo advisor’HiRobo’ from the 25th to May 9th. First, we will temporarily suspend new, rebalancing, and diagnostic transactions for Hirobo General Fund and Personal Pension Fund. Instead, it plans to continue to provide services for customer inquiries, additional deposits, and individual redemptions for the Hirobo Fund.
It is interpreted that banks are struggling to respond to violations of the gold law, as they can face fines of hundreds of millions of dollars.
An official from the financial sector said, “There are currently no specific enforcement rules and the standards for applying the law are ambiguous, which leads to confusion in the field.” Banks also complicated and difficult all business processes,” he said.
On the other hand, the’Money Soo Act’, which takes effect from the 25th, eliminates all ‘6 sales regulations’ (conformity principle, adequacy principle, duty to explain, prohibition of unfair business practices, prohibition of unfair solicitation, and prohibition of false exaggerated advertising). It was expanded to financial products.
If a financial company violates this, a’punitive penalty’ is imposed up to 50% of the import of related products. The fine for negligence is raised from a maximum of 50 million won to 100 million won.