Consumer Protection Performance Evaluation in Banking Sector...Only 1 out of 5 Banks Rated 'Good'

One 'Good' Site Without Top Grade 'Excellent', Four 'Average' Sites

[Asia Economy Reporter Park Sun-mi] In the first financial consumer protection performance evaluation conducted after the enactment of the Financial Consumer Protection Act (FCPA), only one out of five banks received a 'Good' rating.

According to the Financial Supervisory Service on the 8th, among the banks subject to the '2021 Financial Consumer Protection Performance Evaluation'?Gyeongnam, Kookmin, Busan, KakaoBank, and Hana Bank?only Kookmin Bank received a 'Good' rating in the overall grade, while the others received 'Average.' No bank achieved the highest rating of 'Excellent.'

The performance evaluation grades are divided into five levels: Excellent, Good, Average, Inadequate, and Vulnerable, based on each evaluation item, and the overall grade is also operated on a five-level system by weighted averaging the scores of each evaluation item.

In this evaluation, three banks?Kookmin, Busan, and Hana Bank?improved by one grade compared to the previous year, but KakaoBank and Gyeongnam Bank remained at the same 'Average' level as the previous year.

The absence of any bank receiving the overall 'Excellent' rating this time was largely influenced by the surge in financial complaints during the Lime and Optimus private equity fund incidents. Due to the significant increase in complaints related to private equity funds, Busan Bank and Hana Bank received an 'Inadequate' rating in the quantitative indicator category of 'Complaint Prevention.' In the non-quantitative category, KakaoBank received an 'Inadequate' result in the 'Organization Dedicated to Consumer Protection' section.

The Financial Supervisory Service has conducted the financial consumer protection performance evaluation annually, but this evaluation is significant as it is the first conducted based on the FCPA, which was enacted on March 25 of last year. Evaluations were conducted on a total of 26 companies across seven financial sectors, including banks, with a focus on the operation status of internal control systems such as dedicated consumer protection organizations within financial companies, consumer protection systems related to product development, and consumer protection systems related to product sales.

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