The real innovative finance is’they’, not Toss and Carvin

Kakao Bank, Toss, Bank Salad, Naver Financial, Kakao Pay. What they have in common is the protagonist that brought innovation to the domestic financial industry. It is evaluated for providing services that focus on convenience that traditional financial companies could not, and lowering the financial threshold for new filers.

But there is a long way to go. Compared to the services provided by fintech companies around the world, such as the United States, the United Kingdom, and Australia, services and products are still at the level for corporate profits, not customer-centric.

On the 20th, the Financial Services Commission held a briefing session on overseas innovative financial services cases through live online broadcasting. Digital banks (internet-specialized banks), which are considered innovation cases, and fintech companies specializing in loans were shared. In addition, suggestions on improvements in the Korean financial industry compared to overseas cases continued.

Digital Bank (Internet Specialized Bank)

Venex, Bird, and Nubank were cited as examples of innovative digital banks. They allow access to and use of various financial services on one platform. It is common to advise and advise customers on reasonable financial consumption. So far, it is similar to the service provided in Korea. However, if you look closely, there is a big difference.

Bnext is a digital bank established in Madrid, Spain in 2016. It has developed into a financial product sales platform in connection with banking services. Vinex only provides core banking services such as account opening and fund transfer. Financial management and financial product inquiry are provided in connection with other financial companies and fintech companies.

If Kakao Bank aims for full banking, which provides full financial services, Vinex does only core services directly. Since the rest is provided in connection with other companies, it does not focus on product sales, but acts as a kind of marketplace where you can search and compare various financial products.

Founded in London, UK in 2015, Bud provides a customized open banking service that allows customers to personalize their banking services on the platform. It is characterized by providing more than just a service according to the customer’s tendency and situation.

Nubank, based in Sao Paulo, Brazil, was launched in 2013. It provides deposit, remittance and withdrawal, debit, loan, and digital credit card services in one digital account. As it is an online-only account, registration, maintenance, and various fees are free. Digital loans do not require documents and are automatically screened. Credit cards are also issued only through mobile apps.

NuBank’s products and services are characterized by providing opportunities for low-income marginalized people to use banking services at reasonable costs. This is because it is relatively cheaper than the fees of existing Brazilian banks. In addition, it is meaningful in that all banking services are digitalized to reduce the cost and use of banking services to the underprivileged.

On the other hand, in the case of Korean Internet banks, service linkage between financial companies is limited. Kakao Bank only recruits customers from affiliated credit card companies and opens CMA accounts for affiliated securities companies for the purpose of receiving commissions.

In addition, their dependence on loan-deposit business is higher than that of traditional banks, and the use of open banking is low. Dr. Seong-Bok Lee of Capital Market Research Institute pointed out that “Open banking was focused on inquiring and using accounts of other banks rather than linking various financial services.”

It is different from overseas innovation services in that it serves all customers, not a specific customer base. Dr. Lee said, “Korea’s Internet banks do not differentiate between customers and try to make profits based on many customers.” There is.”

loan

Companies that have been selected as innovative examples in the lending sector target small business owners, small businesses, university students, and low-credit individuals who have relatively difficult financing through loans. In other words, it is characterized by subdividing and diversifying products targeting new filers. Therefore, it provides opportunities for financing and loan products with reasonable terms to new filers. There are also places that provide support to small business owners and small and medium-sized enterprises to procure working capital in a timely manner.

First, FlexiLoans of India is offering a lending platform specialized for small business owners and SMEs in 2016. It is meaningful in that traditional banks provide alternative financing to small and medium-sized enterprises (SMEs) whose loan applications are rejected or are not provided timely funds. POS loans provide loans within the monthly average card or QR payment amount. If you apply for a loan online and submit documents, the loan will be decided within 2 days.

Founded in Berlin, Germany in 2016, Billie is a small business receivable management service. Automated processing of all outgoing invoices from SMEs Billy is attracting attention because it pays receivables to SMEs within 24 hours. The service was created based on the fact that SMEs have a burden to manage accounts receivable from B2B (business-to-business) transactions.

Tradeshift, located in San Francisco, USA, provides supply chain financial services. It leverages cloud technology to streamline invoices, workflows, and supplier financing. By connecting the B2B supply chain to one platform, it comprehensively supports purchase, payment, and communication between sellers and buyers.

Founded in San Francisco in 2011, SoFi provides online loan services for undergraduates, graduate students, and beginners. In addition to student loans according to student type, there are also loan products for graduates. There are no loan review, approval, and execution fees, and the loan rate is low. You can also adjust the loan repayment date.

Avant, located in Chicago, USA, is an online personal loan service in partnership with an internet bank. Using its own credit rating system, it provides loan opportunities to customers who are marginalized from the existing credit rating. Another feature is that no separate collateral is required. You can choose the appropriate loan amount and repayment period according to your individual needs.

Unlike the case of overseas innovation targeting various customers and markets, Korea’s new lending market is largely divided into two. It is a market where the P2P market and fintech companies broker loan products of existing financial companies. Most of the new P2P loans are real estate-related loans. According to Dr. Lee, more than 80% of P2P loans (based on balance) are real estate-related loans. It is pointed out that there is no loan product targeting a specific customer segment.

Dr. Lee said, “In Korea, fintech companies are expanding their service range after securing a customer base to some extent. It is necessary to consider whether this method is for customers or for generating profits for fintech companies.”

Written. Byline Network
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