"Banks Must Introduce Integrated Complex Services Combining Consumption, Distribution, and Finance"

Korea Institute of Finance 'Domestic Bank Platform Strategy' Report
"The Scope of Banks' 'Ancillary Services' Should Be Expanded"

[Asia Economy Reporter Shim Nayoung] Australia's Commonwealth Bank (CBA) integrated retail product services into its mobile banking app last November. It partnered with Little Buddy, an Australian digital startup that sells various products and offers price comparisons and coupons. Department store brand Myer, discount supermarket Big W, sports equipment retailer Rebel Sports, electronics store Harvey Norman, and e-commerce company The Iconic are all accessible directly through the bank's app for retail shopping services.

With the 'easing of the separation between banking and industry' promoted by Financial Services Commission Chairman Kim Joo-hyun, it is expected that banks will actively enter non-financial sectors. There are calls to enhance competitiveness through integrated complex services that combine consumption, distribution, and finance. According to the 'Domestic Bank Platform Strategy' report released on the 15th by the Korea Institute of Finance, "Domestic banks' digital platform strategies are characterized by developing new technologies such as MyData and collaborating with fintech companies, as Shinhan Bank did by signing a business agreement with the digital asset evaluation platform 'Xangle'," but it emphasized that "complex services and marketing integrating consumption, distribution, and finance are necessary."

The report also stated, "The current single-app platform model, which links financial services of subsidiaries centered on banks, will change," and predicted, "It will gradually take the form of 'digital universal finance' through cross-industry operations and non-financial linkages." This is because banks aim to connect banking with investment services, insurance, pensions, and commerce. For this, data is essential, and the report argues that the scope of banks' 'ancillary business' permissions should be expanded. This is a necessary measure for the expansion of complex services such as consumer finance, asset management, and life management.

However, it was noted that to expand such data linkage services, the responsibility of financial companies must be strengthened. If financial platforms misuse data, financial consumers could suffer damages, so stricter sanctions and punishment standards need to be established. The report stated, "As payment, deposits and loans, investment and advisory, guarantees and pensions combined with commerce information are promoted using platform forms, connectivity between banks and non-banks, and between banks and commerce will expand."

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