From This Week, Mutual Finance, Post Office, and Securities Firms Also Join Open Banking Service

Savings Banks to Launch Service in the First Half of Next Year

[Asia Economy Reporter Kim Hyo-jin] Starting this week, open banking services will be available at 5 mutual finance cooperatives, post offices, and 13 securities firms. The accounts eligible for open banking deposits will also be expanded to include fixed savings and installment savings.

The Financial Services Commission announced on the 20th that it will implement these measures based on recent discussions at the Digital Finance Council to enable more financial consumers to use open banking more conveniently.

Open banking refers to a service that allows users to check all bank accounts and transfer funds using a single bank app or fintech company app without the need to install multiple financial companies' applications.

Accordingly, from the 22nd, open banking services will be implemented at mutual finance cooperatives such as NongHyup, SuHyup, ShinHyup, Forest Cooperatives, and Saemaeul Geumgo, as well as at post offices.

The service will also be available at securities firms including Kyobo Securities, Mirae Asset Daewoo, Samsung Securities, Shinhan Investment Corp., Ebest Investment & Securities, Kiwoom Securities, Hi Investment & Securities, Korea Investment & Securities, Hanwha Investment & Securities, KB Securities, NH Investment & Securities, Meritz Securities, and Daishin Securities.

Consumers can check and transfer funds from accounts of these financial companies all at once using the app they use.

For example, users can check or transfer all accounts of open banking participating companies through a securities firm app, or additionally check or transfer accounts of mutual finance cooperatives, post offices, and securities firms through a bank app.

Savings banks and four securities firms?Eugene Investment & Securities, Hyundai Motor Securities, SK Securities, and DB Financial Investment?will also provide open banking services once their system development is completed in the first half of next year. However, account inquiry and transfer for these securities firms can be used through other financial apps starting from the 22nd.

Card companies are expected to participate additionally in the first half of next year after going through a special participation procedure approved by the Financial Settlement Service's general meeting. With the expansion of participating institutions, the open banking deposit accounts, which currently correspond to demand deposit accounts, will also be expanded to include fixed savings and installment savings.

Additionally, from the 1st of next month, the inquiry fees paid by user institutions for providing inquiry services will be reduced to about one-third. This fee reduction was made considering the expected surge in inquiry volume due to the expansion of participating institutions and the burden on user institutions.

The Financial Services Commission expects that the expansion of open banking participating institutions will promote differentiated app development and service competition across industries.

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