Each bank will freely participate in Big Tech and Fintech platforms After many twists and turns, commercial banks eventually create their own “transfer loans”public platform. For banks, alternatives have been prepared to avoid소액결제현금화being dependent on alternative loans led by private big tech (large information technology companies) such as Kakao Pay and Toss and fintech (financial technology companies). According to the financial sector on the 3rd, commercial banks will resume discussions on how to build a public platform for alternative loans, which has been suspended since June, with the Korea Federation of Banks at the center.
Commercial banks have suspended their own public platform plans for more than a month, wary of the authorities, which initially planned a way for banks to participate in BigTech and FinTech’s alternative loan platforms. It is highly likely that the “half”service will begin in October as major commercial banks such as KB Kookmin Bank and NH Nonghyup Bank did not participate in the “loan transfer” platform led by big-tech (large information technology companies) and fintech (financial technology) companies such as Toss. The “Non-face-to-face and One-stop Alternative Loan Platform” project, specified by the Financial Services Commission in this year’s business plan, is to establish a service infrastructure that allows financial consumers to compare loan interest rates from banks and other financial institutions in mobile apps at a glance and easily transfer to low interest rates without cumbersome document procedures.
However, the banking sector explained that the mood changed when the Financial Services Commission announced that it did not officially oppose the bank’s independent platform at a meeting with bank vice president-level officials on the 15th of last month. After the meeting, the Korea Federation of Banks reportedly asked banks over the past two weeks to participate in public platforms again, and a number of banks reportedly supported the establishment of public platform readers. As a result, commercial banks will push for the establishment of a “interest rate comparison and loan platform”run by the Korea Federation of Banks.
Individual banks can freely participate not only in this public platform but also in the alternative loan platform that Big Tech and Fintech are preparing. Until now, banks have been reluctant to participate in the loan-to-value platform led by Big Tech and FinTech for various reasons. Although it does not oppose the cause of the alternative loan project of “promoting consumer benefits through free loan transfer,”many fees to be paid to private platforms are burdensome, and there are fears that commercial banks’ “big-tech and fintech dependence” will become faster under the structure of the financial industry in the wake of their participation in private platforms. “If a bank participates in the platform, it will only intensify competition for interest rates, but it will not gain much,” an official at a commercial bank said. “In the end, we are worried that it will only increase the number of platform-operating information technology (IT) companies due to increased fees and users.”.