[Open Banking Era] Open Banking Reaches 18 Million Users... Industrial Bank of Korea Ranks No.1 in Service

Akyung & Web Development Institute Conduct Korea's First Comprehensive Open Banking Evaluation for Commercial Banks
IBK Scores 92.1 out of 100... Kookmin Bank Ranks 2nd
Average Score of 10 Banks is 82, High Marks in Design and Technology

[Asia Economy Reporter Jo Gang-wook] Open banking, which allows all bank transactions through a single application (app), is becoming the dominant financial platform, with nearly 18 million subscribers just two months after its full implementation. With the introduction of IT and mobile new technologies, fierce competition is underway not only among commercial banks but also fintech (finance + technology) companies in this emerging market, which has become a new growth engine. Financial institutions participating in open banking are each showcasing their unique strengths by offering specialized services.

According to the Financial Services Commission and the financial sector on the 18th, as of the 14th of this month, the number of open banking subscribers reached approximately 18 million, with an increase of 15 million over two months since its full implementation on December 18 last year. During the pilot period from October 30 to December 17 last year, the number of subscribers was 3.17 million. Compared to the 12 million subscribers as of the 8th of last month, the number has increased by 6 million.

At the Open Banking Service Launch Ceremony held on the 18th at the Westin Chosun Hotel in Jung-gu, Seoul, attendees including Eun Sung-soo, Chairman of the Financial Services Commission, performed the full-scale implementation proclamation ceremony for the Open Banking Service. From the left: Yoon Myeon-sik, Deputy Governor of the Bank of Korea; Kim Young-gi, President of the Financial Security Institute; Ryu Young-jun, CEO of Kakao Pay; Chairman Eun; Kim Tae-young, Chairman of the Korea Federation of Banks; Kim Hak-soo, President of the Korea Financial Telecommunications and Clearings Institute; Kwon In-won, Deputy Governor of the Financial Supervisory Service. Photo by Moon Ho-nam munonam@

Initially, during the pilot period, the number of subscribers stagnated, dropping from 1.17 million in the first week of November to 340,000 in the first week of January. However, as new fintech companies expanded their market entry, the number of subscribers surged. On the 8th of last month, 193 institutions applied to use the service, and it is expected that 15 additional fintech companies will participate within this month.

The introduction of open banking means that fintech companies and banks can provide all banks’ fund transfer and inquiry functions through a standardized API system. Especially with the spread of smartphones, tablets, and wearable devices such as smartwatches, the 'mobile only' era is predicted to arrive, and mobile app-centered open banking services are expected to become more active. The Financial Services Commission also announced in its business plan released the previous day that it will foster financial platforms capable of easy payment, remittance, and account-based services by introducing MyPayment (payment instruction business) and comprehensive payment business to innovate the financial industry this year. In particular, it plans to establish global-level systems for expanding the functions and scope of open banking, as well as for user protection and security enhancement. To secure the scalability and stability of open banking, it plans to prepare an 'Open Banking Advancement Plan' by May through research projects and industry consultations.

In line with this trend, Asia Economy, together with the Web Development Institute, a web and app evaluation specialist, analyzed the open banking service mobile apps of 10 major domestic banks for the first time in Korea. The five evaluation criteria were customer attraction (how much favorability it gains from customers), business (whether core functions are well implemented), content (whether it has diverse and differentiated content), design (whether the app design is highly complete), and technicality (the app’s technology). Each of the five areas was divided into 4 to 6 subcategories for scoring, and the scores were later converted to a 100-point scale.

Eun Sung-soo, Chairman of the Financial Services Commission, is delivering a congratulatory speech at the launch ceremony of the Open Banking service held at the Westin Chosun Hotel in Jung-gu, Seoul on the 18th. Photo by Moon Honam munonam@

As a result, IBK Industrial Bank of Korea scored the highest with 92.1 points out of 100, ranking first. It was followed by KB Kookmin Bank (88.7 points), Shinhan Bank (84.6 points), and then Hana Bank and Jeju Bank (84.2 points).

The average score for the open banking apps of the 10 evaluated banks was 82 points, which is considered to exceed the generally expected level of 80 points in usability evaluation or service satisfaction. Especially in terms of design (86.4%) and technicality (85.9%), the highest readiness was demonstrated. Business (81.2%) and content (83.2%) also showed excellent levels. However, due to the openness of open banking, customer movement is expected to increase, so customer attraction (74.7%) for attracting new users and retaining existing users needs improvement.

Moon Hyung-nam, lead professor at Sookmyung Women’s University Graduate School of Business (representative of the Web Development Institute), who oversaw this evaluation, said, "The fact that domestic banks have started open banking services is a groundbreaking event in the history of our financial innovation, and understanding the level of open banking services is meaningful." He added, "If this opportunity is well utilized, we can leap from a financial and fintech developing country to an advanced country."