[Initial Moment] Becoming Wealthy with Financial Apps in the Blink of an Eye

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[Asia Economy Reporter Park Sun-mi] One of the most notable advantages of mobile payments is their convenience, especially when thinking about China's financial digitalization. Even people who beg for money on the streets carry QR codes for mobile payments instead of coin baskets, showing that China has entered a cashless society faster than South Korea. The biggest concern when first using mobile payments in China is, "What if money is withdrawn from my registered bank account without my knowledge?" However, after experiencing the countless conveniences of the payment system, worries about security soon become a forgotten issue.

Some say that South Korea's mobile payments have become just as convenient as China's. Beyond mobile payments, the rapid digital transformation of banks is making digital finance more convenient for consumers (customers). In South Korea, not only can you pay with a smartphone, but you can also transfer money via messenger, and with the realization of open banking, you can easily transfer funds, save, and invest across different banks using just one banking application (app). There was a time when foreigners could not purchase the coat worn by Cheon Song-yi (played by Jun Ji-hyun) in the drama "My Love from the Star" from Korean shopping malls because they could not obtain a public certificate, but now that the public certificate system has been abolished, foreigners can make payments easily.

So, have customers become more convenient? Although systems are being developed to enhance convenience, it is still difficult to give a high score for convenience. This is due to the discomfort caused by too many similar choices being presented. A common inconvenience cited by people who have lived in China and then experienced South Korea's financial digitalization is the numerous financial apps piling up on their smartphones. During the payment process, as you follow instructions one by one, various apps provided by different financial companies accumulate on your smartphone. It feels similar to the early days of computer use when repeatedly clicking "Yes" on pop-up messages led to many unknown programs being installed.

In China, where the credit card market is not large, most people install the two major mobile payment apps, WeChat Pay and Alipay, on their smartphones and link their bank accounts to them. Regardless of which online shopping mall they purchase from or which bank account the money is withdrawn from, the payment system usually uses either WeChat Pay or Alipay. In contrast, South Korea has a variety of payment methods and many financial companies offering similar services. Even when deciding which credit card to use for online shopping, there are various payment methods such as app card payments, simple payments, and certificate payments provided by financial companies. Because some methods work in certain places but not in others, after a few months in South Korea, your smartphone home screen becomes filled with apps provided by various financial companies.

Banks and securities firms have also entered an era where one app can handle everything from checking other accounts to transfers, but even within the same financial company, multiple apps with different functions are released simultaneously. Due to aggressive marketing competition among financial companies, before you know it, you find yourself facing a smartphone filled with multiple bank and securities apps as if under a spell. Positively, this gives consumers freedom of choice, but the very similar functions and services cause confusion and inconvenience due to the overwhelming number of options.

Since digitalization will remain a common theme for financial companies next year, it is highly likely that more companies will competitively release various financial apps. Although financial companies recognize the need for app dieting, it will be difficult to reduce the number of apps developed and commercialized due to segmented marketing targeting diverse customer groups. From the customer's perspective, considering the convenience of financial life, it is time for digital finance to undergo a diet that integrates and eliminates unnecessary elements.

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