Financial Data Exchange's Slow Start... Only 50 Transactions in One Week

[Asia Economy Reporter Kim Hyo-jin] The Financial Data Exchange, launched with the goal of financial innovation through the activation of the data economy, is struggling to gain traction in its early stages. It is pointed out that transactions have not been actively conducted due to low participation from major financial companies.

According to financial authorities on the 19th, since its official launch on the 11th, only 50 transactions occurred on the Financial Data Exchange during the week until the 18th. This amounts to an average of about 7 transactions per day. During this period, only 201 data products were registered on the Financial Data Exchange.

A financial industry official explained, "Since the number of products listed is still quite small, the range of choices is also limited," adding, "More products need to be displayed on the shelves first for transactions to become active."

Currently, 44 companies are participating in the Financial Data Exchange. Among major financial companies, Shinhan Bank, Shinhan Card, NH Nonghyup Bank, NH Investment & Securities, KB Kookmin Card, Woori Bank, Samsung Securities, IBK Industrial Bank, and BC Card stand out.

Among these, Shinhan Bank registered 4 products, Shinhan Card 65 products, and KB Kookmin Card 20 products, while others have not registered any. The general view is that more time is needed before major financial companies fully participate.

An official from a commercial bank said, "We can upload productized data immediately," but added, "We are internally analyzing and reviewing which data will be meaningfully handled and how much will be traded, but there is a lack of reference materials or performance data to use as standards, so we need to observe further."

An official from a card company said, "We need to have a concrete idea of what types of data can be used and how to productize them before we can actively engage in transactions," expressing, "It is burdensome to approach it with a mindset like 'Since this product is listed, let's try making something like this.'"

The financial authorities maintain that this is inevitable at the early stage of introduction. A financial authority official said, "Data trading cannot occur in large volumes all at once like buying and selling stocks of a specific company on the stock market," adding, "It should be seen as something like a 'data IPO' rather than a simple stock transaction, and because there are issues such as pricing, more time and preparation are needed."

The financial authorities plan to actively promote activities to increase participation from financial companies and related businesses based on the previously established Data Distribution Ecosystem Construction Council.

The Financial Data Exchange is an intermediary system operated by the Financial Security Institute where suppliers and demanders can match and trade data such as de-identified information and corporate information.

When suppliers register data for sale, demanders can search for and purchase the data. The financial authorities expect that various convergence and complex products and services will be created through data trading, such as commercial district analysis services combining regional floating population information from public institutions with card sales data, and insurance discount products created by linking traffic accident information with vehicle black box data.