Geumbowon, One Year as a Data Specialized Institution... Increased Demand for Data Integration

Trend of Combined Demand. Photo by Financial Security Institute

[Asia Economy Reporter Song Seung-seop] The Financial Security Institute announced on the 12th that it has conducted 39 data integrations and 35 anonymization appropriateness evaluations over the course of one year since being designated as a specialized data institution.

According to the Financial Security Institute, the demand for data integration across various sectors such as finance, distribution, telecommunications, and public institutions is on the rise. The demand, which was only 4 cases at the end of last year and 6 cases in the first quarter of this year, sharply increased to 20 cases in the second quarter.

A total of 41 organizations, including credit rating agencies and fintech companies, participated in the data integration. The number of data integration requests provided reached 113. Twenty-seven companies, including banks and credit rating agencies, received and utilized the integrated data outputs. Notably, credit rating companies accounted for the largest share with 47 data integrations (43%). The utilization of integrated data outputs was also highest at 10 cases (21%).

The primary purpose of data integration was the development of credit evaluation models. A representative example is combining freight truck operation information from public institutions with credit information from personal credit evaluation companies (CB companies) to offer customized credit loan products. Another case involved fintech companies combining customer payment and behavioral information with banks’ loan and deposit information to provide various financial services to customers with limited financial history.

The “anonymization appropriateness evaluation,” which assesses whether anonymized information has been safely processed to prevent re-identification, was mainly requested by credit card companies (63%) and securities firms (29%).

Kim Young-ki, President of the Financial Security Institute, emphasized, “The demand for data processing at credible data integration institutions is expected to increase further. The Financial Security Institute will strive to activate the domestic data industry by supporting safety reviews of results, including re-identification risk assessments, as well as analysis and utilization.”

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