Toss Bank's delayed approval... "No issues expected for September launch"

Industry Expects No Major Issues with Main Approval

[Asia Economy Reporter Kiho Sung] The launch of Toss Bank, aiming to become the third internet-only bank, is taking a bit longer than expected. This is due to delays in the final approval review by financial authorities. However, the industry expects the bank to set sail around September, as there are no major issues with the review itself.

On the 29th, Toss Bank's final approval agenda was not submitted at the Financial Services Commission's regular meeting held this month. Initially, the financial sector anticipated that the final approval would be granted at this month's regular meeting. With the review delayed, Toss Bank's final approval has been at a standstill for four months since the application on February 5. Compared to Kakao Bank or K Bank, the schedule is delayed by more than a month.

As the Financial Supervisory Service has not completed the final approval review for Toss Bank, the submission to the Financial Services Commission's regular meeting has naturally been postponed to next month. The Financial Services Commission's regular meetings are usually held on the second and fourth Wednesdays of each month.

The market views the delay in the final approval review as not a major problem. Since Toss Bank is launching based on a fintech company, unlike existing internet banks, there are more aspects to review. Additionally, it is known that recent consecutive COVID-19 cases within the Financial Supervisory Service have also influenced the delay.

If the final approval is granted next month, it typically takes about 3 to 4 months for business preparation, including system integration with external related institutions, so the launch is expected to be possible at the earliest by September this year.

The industry also sees Toss Bank's final approval as a matter of time. An industry insider said, "Toss Bank is included in the Financial Services Commission's plan to expand internet-only banks' services to medium- and low-credit borrowers announced that day," adding, "It is known that there were no major issues during the review process, and if the final approval decision was not imminent, Toss Bank would not have been included in the authorities' measures." In fact, unlike other internet banks, Toss Bank set a target of 34.9% for the proportion of loans to medium- and low-credit borrowers from its first year of operation. This contrasts with Kakao Bank and K Bank, which aim for over 30% by the end of 2023.

Meanwhile, regardless of the review delay, Toss Bank is focusing on recruiting personnel. It has secured a large number of internet bank specialists, including developers, data scientists, compliance officers, network security technicians, anti-money laundering staff, and consumer protection officers.

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