[Open Banking Era] Most Used Features: 'Balance Inquiry and Withdrawal Transfer'

After Official Service Launch, 400,000 Daily Users and 660,000 Accounts Registered
Number of Participating Companies Expected to Increase to 67 in Q1

At the Open Banking Service Launch Ceremony held on the 18th at the Westin Chosun Hotel in Jung-gu, Seoul, Eun Sung-soo, Chairman of the Financial Services Commission, and other attendees are taking a commemorative photo. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jo Gang-wook] The number of Open Banking subscribers is approaching 18 million. This comes just over two months after the official service was launched on December 18 last year, following a pilot service that began on October 30.

According to the Financial Services Commission on the 18th, the number of Open Banking subscribers is currently estimated to be between 17 million and 18 million. This marks an increase of about 6 million subscribers in just over a month from 12 million as of the 8th of last month. At that time, the number of registered accounts was 22.22 million, with an average daily usage of 3.74 million transactions.

During the pilot operation period, an average of 60,000 users and 160,000 accounts were registered daily. Since the official service started, an average of 400,000 users and 660,000 accounts have been registered daily. The number of subscribers increased 5.6 times, and the number of registered accounts grew 3.1 times. Notably, new subscriptions through fintech companies have increased faster than through banks.

During the pilot period, which mainly focused on banks, balance inquiry services accounted for 82% of total usage. However, after the official service began, the proportion of withdrawal and transfer transactions rose significantly to 28%, while balance inquiries dropped to 58%. This indicates a substantial increase in actual transaction volume.

Commercial banks have upgraded their Open Banking services and entered a competitive stance against fintech companies.

Shinhan Bank upgraded its integrated mobile platform "SOL" to allow the use of 'Easy App Withdrawal,' 'Kkook Transfer,' and 'Baro Transfer' functions even for transactions with other banks. KB Kookmin Bank introduced a new 'On/Off' feature that makes it easy to withdraw from and inquire about accounts registered with other banks in Open Banking. NH Nonghyup Bank revamped the 'Financial Product Mall' within its internet banking and NH Smart Banking app so that if the account balance is insufficient when subscribing to a product, users can simply press a recharge button to immediately top up the balance from another bank account and subscribe to financial products. Woori Bank added the 'Collect at Once' feature, which allows easy transfers from up to five other bank accounts to a Woori Bank account without using security media, as well as interbank transfer functions. Hana Bank expanded Open Banking to its existing mobile banking app services, launched dedicated savings and deposit products, and introduced the 'Gather Funds from Other Banks into Hana' service, enhancing its features.

The Financial Services Commission expects that 15 additional fintech companies will participate in the first quarter of this year, increasing the total number of participating financial institutions to 67.

A banking industry official said, "With the full-scale opening of the Open Banking era, fierce competition is taking place not only among banks but also including fintech companies," adding, "We will continue to launch products and services that enhance customer convenience and accessibility."

☞ What is Open Banking?

Open Banking is a financial service that standardizes and opens up banks' remittance and payment networks, allowing all bank accounts to be viewed and transferred through a single app. For example, if a financial consumer was using a specific bank's app, previously they could only use inquiry and transfer services for that bank's accounts, and had to use separate apps for other banks' accounts. However, with the introduction of Open Banking, users can now access inquiry and transfer services for all accounts from banks such as Shinhan, Kookmin, Woori, and Nonghyup within a single bank app. In Korea, the pilot service began on October 30 last year with participation from 10 banks, and on December 18 of the same year, a total of 47 entities including 16 banks and 31 fintech companies started the Open Banking service.