Samjong KPMG "Start of Data Economy... Financial Sector Needs MyData Business Strategy"

[Asia Economy Reporter Park Jihwan] The implementation of open banking and the passage of the Data 3 Laws (amendments to the Personal Information Protection Act, Credit Information Act, and Information and Communications Network Act) in the National Assembly plenary session are accelerating the transition to a data-centered digital economy. Accordingly, domestic financial companies are advised to focus on preparing data utilization strategies related to the introduction of MyData business.

According to a report published on the 23rd by Samjong KPMG (The Beginning of the Data Economy, MyData: Focusing on the Financial Industry), institutionalization of MyData business is actively progressing worldwide, and it is found to have the potential to create enormous added value and activate the data economy, especially in the financial sector.

MyData refers to the process where an individual, as the information subject, requests the opening of their own data based on the 'right to data portability,' and companies open the data they hold to the individual (requester) or a third party designated by the individual. It strengthens the individual's control and authority over their own data, facilitating the opening and utilization of data according to the will of the information subject.

In Korea as well, a legal foundation for MyData is being established, focusing on creating data-based innovative services, promoting competition in the financial industry, and strengthening self-determination rights over data. In particular, competition around the data economy, which can create enormous added value in the financial sector, is expected to intensify, leading to new business and innovation opportunities.

The report advised that financial companies should conduct internal control and security-related inspections to prevent information leaks or privacy infringement issues. It also emphasized that financial companies could consider entering the MyData business as providers of data to third parties through various data collection and analysis based on their own customers.

The report selected representative MyData companies leading financial innovation, including the U.S. company 'Mint,' which provides integrated personal credit information inquiry services; China's 'Ping An Insurance Group,' which recommends and sells products based on data held by the group; and the U.K.'s 'Digi.me,' which proposed the personal data store (PDS) business model.

Jo Jaebak, Head of Digital Division at Samjong KPMG, stated, "The data economy is an irreversible trend, and the ability to utilize data will determine the success or failure of companies," adding, "With the passage of the Data 3 Laws and the introduction of MyData in Korea, this year will be the first year when the ability to secure and analyze data becomes the greatest competitive advantage for companies."

This content was produced with the assistance of AI translation services.