Banking Sector Accelerates Launch of First MyData Service

Standard API (Application Programming Interface) Method to Be Applied from August
Preparing for Launch of Various Services and Platforms

[Asia Economy Reporter Park Sun-mi] Banks that have received full approval for MyData (personal credit information management business) are busy launching the ‘first’ service that integrates MyData functions into their existing asset management services. Although it is still in the early implementation stage, they are determined to complete the service launch before August, when the standard API (Application Programming Interface) method will be applied, and to fully enter the MyData competition.

According to the financial sector on the 17th, among the four banks (KB Kookmin, Shinhan, Woori, NH Nonghyup) that have received full approval for MyData except Hana Bank, KB Kookmin Bank is the only one that has launched related services. KB Kookmin Bank launched the ‘Credit Management Service’ and ‘Car Management Service’ based on API data technology in its asset management application ‘KB MyMoney’ on the 5th of this month, the start date for MyData full approval operators. Until now, banks have provided services using a scraping method that collects data from other places with the consent of the information subject, but from August, MyData operators must apply the API method instead of the scraping method when aggregating data for services.

Shinhan Bank, Woori Bank, etc. Preparing to Launch API Technology-Based Services

Shinhan Bank plans to launch a new ‘My Asset’ service applying API technology in April. This is an upgrade of the existing asset management service ‘MY Asset’ to suit the MyData era. It is being developed with the goal of creating a comprehensive financial product solution platform that collects more precise data from various industries and refines customer analysis based on this data, enabling customers to design and manage their assets throughout their lifetime rather than just providing fragmented product recommendations. Personal assets such as artworks and limited edition collectibles, not just financial assets like savings and deposits, will also be digitized.

Woori Bank is focusing on developing a personalized financial planning service based on API with a target launch before August. It collects financial information such as customers’ credit information, assets, and disposable income, as well as other non-financial information, and uses artificial intelligence (AI) technology for multidimensional analysis. Based on this, it plans to provide customized financial planning services that tell customers how to save, spend, grow, and borrow money.

NH Nonghyup Bank plans to expand its MyData services by enhancing its existing comprehensive asset management service ‘NH Asset+’. Based on this, it plans to launch an integrated MyData platform applying the standard API in November.

However, since banks are still in the early stages of launching API-based MyData services, there are evaluations that they are falling behind big tech companies (large information and communication companies) that have already been aggregating data and providing services using the API method. As big tech companies stand out in the MyData era, voices are growing that the domestic financial industry needs to prepare countermeasures considering the possibility of big tech’s entry from a long-term perspective.

Researcher Koo Bon-sung of the Korea Institute of Finance advised, “Policy responses are needed to prepare for big tech’s expansion of unique financial roles such as lending, insurance, sales and brokerage of investment products, and underwriting, beyond fragmented functions like payment convenience and cloud computing.”