[Smart Finance Awards] Open Banking to Become a Nationwide Financial Platform

Congratulatory Speech by Kim Doin, Deputy Governor of the Financial Supervisory Service

[Asia Economy Reporter Ji-hwan Park] The 'financial big bang' that brought revolutionary changes to the financial sector began with the computerization of the London Stock Exchange's trading system in 1983, even before smartphones existed. Since then, the advancement of IT technology has not only enhanced convenience but also transformed industrial structures and cultures. As seen in recent phenomena like Donghak Ants and Seohak Ants, investment culture is also rapidly changing. Nowadays, a smartphone fits snugly in one hand but has performance thousands of times superior to the computer on the spacecraft that first took humanity to the moon.

Mobile has become an everyday part of life, and through the handheld platform of smartphones, financial transactions can be conducted anytime and anywhere. Mobile trading and open banking, the topics of today, are representative examples. Securities trading through mobile platforms accounted for 45% of the total, with an average daily transaction amount of 25.6 trillion KRW as of last September, making it the largest share among trading platforms. Open banking, which evolved one step further from mobile banking, was introduced in December last year and has already surpassed 66 million accounts, with over 40 million subscribers, representing more than 70% of the economically active population. When open banking expands to secondary financial sectors such as securities firms and savings banks next year, it will become a nationwide financial platform for all citizens. I believe this development was possible thanks to the financial infrastructure you have worked hard to build and the familiarity of financial consumers with IT environments.

Thomas Friedman, a three-time Pulitzer Prize winner, emphasized in his book "Thank You for Being Late" that the speed of platform transitions is accelerating due to IT technological advancements, and that social collective efforts are necessary to adapt to these accelerating changes. According to Friedman, it takes at least 7 to 10 years after the introduction of new technology to reach social consensus and institutional arrangements necessary for utilizing the new technology.

Until now, the technology and market logic of related industries have inevitably set the standards and visions for new fields. This phenomenon is the same in financial IT. Even in the face of immediate profits and fierce competition, I ask for your continued cooperation and efforts to ensure that the fundamentals of the financial market?investor protection and trust?are upheld.