The Full-Scale MyData Movement... Where is K-Bank?

Focus on Creating Differentiated Services
Full-Scale Service Launch Expected in the Second Half of This Year

[Asia Economy Reporter Seong Giho] Although the full implementation of the Personal Credit Information Management Service (MyData) has begun, KakaoBank’s silence continues. While financial companies have entered fierce competition over the new market, KakaoBank, the leading internet-only bank, is unexpectedly maintaining its silence. KakaoBank’s stance is that securing competitiveness through differentiated services is a priority rather than rushing into market entry.

According to the financial sector on the 7th, MyData, which launched its service on the 5th, focuses on enabling individuals to view their personal information scattered across various institutions and companies in one place. Financial companies and fintech (finance + technology) firms are making every effort to seize the market.

However, KakaoBank is taking a step back. Until early last year, KakaoBank showed an active stance toward the MyData service but has since revised its approach. Unlike other companies that showed active movements from April last year when preliminary license applications were allowed, KakaoBank applied for a preliminary license in September. Currently, KakaoBank’s preliminary license has not been approved. Industry insiders expect that even if KakaoBank obtains the preliminary license, it will only be able to start full-fledged service in the second half of this year after obtaining the final license and conducting internal tests.

KakaoBank’s cautious approach is based on the judgment that the current MyData services do not show significant differentiation among companies. They intend to take more time to observe in order to meet users’ needs for distinctive services unique to KakaoBank rather than similar services.

A KakaoBank official said, “Since all MyData operators use the same or similar data, the competition will ultimately be about ‘who understands customers better and offers better services.’” He added, “Rather than a quick service launch, we are considering KakaoBank’s capabilities and the services and functions that customers truly need from the perspective of the essence of the MyData business.”

It is also interpreted that KakaoBank is focusing its operational capabilities on expanding loans for low- to mid-credit borrowers, such as the soon-to-be-launched mortgage loans and personal business loans. KakaoBank is currently conducting beta tests for mortgage loans, which are scheduled to launch in the first quarter of this year. The industry expects that if KakaoBank enters the mortgage loan market, real demand borrowers who find it difficult to get loans due to regulations may flock to it. There is also a judgment that the expansion of loans for low- to mid-credit borrowers, a requirement from financial authorities, can no longer be delayed.

A KakaoBank official explained, “We are currently holding repeated internal discussions to prepare differentiated MyData services,” adding, “Expanding loans for low- to mid-credit borrowers and new businesses are also important, so we are focusing our capabilities on these areas as well.”

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