Loan Companies Are No Exception... Financial Authorities Say "Must Establish MyData Transmission System" (Comprehensive)

"Need for Establishing a Computerized System" Legal Interpretation

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[Asia Economy Reporter Kim Hyo-jin] Financial authorities have interpreted that loan companies must also establish systems for transmitting consumer credit information in line with the implementation of the MyData (Personal Credit Information Management) system.

According to financial authorities on the 5th, the Financial Services Commission recently responded with this interpretation to requests for legal interpretation submitted by some loan companies.

MyData is a system that allows financial consumers to understand and manage their credit information scattered across financial companies, such as financial product subscriptions and asset details, all at once. It is also called a "financial secretary" or "Pocket Finance" because consumers receive specialized information management, asset management, and credit management services tailored to themselves.

MyData providers can analyze individuals' card transaction details, insurance information, investment information, and recommend advantageous financial products. It also signifies that the initiative in financial consumption shifts from financial companies to consumers.

Accordingly, financial companies must send related information to MyData providers when consumers request it.

The "credit information providers and users, etc." under the Credit Information Act, which forms the basis of MyData, includes loan companies registered with the Financial Services Commission.

The Financial Services Commission explained, "All registered loan companies are judged to be required to build a computerized system that can transmit credit information directly or through intermediaries when the credit information subject (consumer) requests to send their credit information to a MyData provider."

As a result, it is expected that integrated credit information analysis will be possible, encompassing not only general financial information such as bank account information, card payment information, insurance payment information, and securities investment information but also loan finance usage information at the peripheral level of the institutional system.

The financial authorities are conducting the screening process for MyData business licensing. In August, 63 companies applied for preliminary approval. Major banks, card companies, insurance companies, and securities firms affiliated with leading financial groups were included in large numbers. The financial authorities plan to prioritize screening about 40 companies that have been providing services similar to MyData to allow them to start their business.

Earlier, financial authorities amended the Banking Supervision Regulations to allow banks to hold financial sector MyData providers as subsidiaries. With the participation of big tech companies such as Naver and Kakao and fintech companies, competition for MyData inside and outside the financial sector is intensifying.

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