The Long-Awaited Bank Project 'Transition to Dual Banking System' Discussion Opens... "Regulations Must Be Eased"

[Asia Economy Reporter Park Sunmi] As various financial services converge actively due to changes in the digital environment, a forum was held to discuss the need for improving the exclusive business regulations in the financial industry and expanding information sharing among affiliates.

On the 2nd, the Korea Federation of Banks held a seminar at the Bankers' Hall under the theme of 'Financial Exclusivity in the Digital Era.' Within the financial industry, the principle of exclusivity is strictly maintained, and financial-led non-financial convergence is also restricted, making innovation difficult, so the seminar was organized to provide a platform for discussing the need to improve exclusivity regulations.

The first presenter, Professor Yeo Eun-jung of Chung-Ang University, delivered a presentation titled ‘Discussion and Response Measures on Financial Industry Exclusivity in the Digital Era,’ expressing the opinion that “with the emergence of big tech financial operators, the realization of de facto ‘universal banking’ through platforms inevitably diminishes the significance of the exclusivity principle.” She added, "It is necessary not only to consider applying the same regulations to big tech activities for the protection of financial consumers but also to explore various approaches to consumer protection in the digital era."

The second presenter, Park Sung-hyun, Vice President of Shinhan Financial Group, emphasized in his presentation titled ‘The Need to Expand Information Sharing Among Financial Holding Company Affiliates’ that “through active information sharing, data can be accumulated to build a ‘data platform,’ which can contribute to strengthening the competitiveness of the domestic financial industry.” He further explained, "The data platform enables the supply of trendy, customized products for customers and serves as an engine supporting new financial industries related to data, as well as expected to play a pioneering ESG role by enhancing social efficiency through data openness."

The third presenter, Jung Joong-ho, Director of Hana Financial Management Research Institute, pointed out in his presentation titled ‘The Necessity of Non-Financial Business Convergence in the Financial Industry’ that “as consumers’ digital experiences become widespread, demands for one-stop services covering financial and non-financial products are increasing.” He stated, "To respond to the emerging trend of financial and non-financial convergence and platformization as key competitive strategies, it is necessary to allow financial companies to provide non-financial convergence services."

Experts participating in the seminar also expressed various opinions. Cho Young-seo, Director of KB Management Research Institute, mentioned, “Banks should evolve into digital financial platforms to provide hyper-personalized services by managing customers’ life-cycle assets and combining financial and non-financial data.” To achieve this, he suggested including discretionary investment management and investment advisory services beyond real estate in banks’ concurrent businesses and allowing banks to invest in companies related to real estate, health, automobiles, telecommunications, and distribution.

Dr. Kim Young-do of the Korea Institute of Finance stated, “There is a consensus on changes in the financial sector such as the implementation of digital universal banking, enhancement of data utilization, and expansion of ancillary businesses,” but also noted that "in-depth and detailed tasks are needed to implement these changes in accordance with principles."

Meanwhile, Kim Kwang-soo, Chairman of the Korea Federation of Banks, evaluated the seminar as “a forum to discuss a new financial regulatory system suitable for the digital era,” and said, "Based on the discussions, we will continue to communicate with financial authorities and the banking sector to contribute to the expansion of digital financial exclusivity in a way that benefits consumers."

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