[Seungseop Song's Financial Light] How Will 'MyData' Change Everyday Life?

If MyData is Implemented, Personal Data Rights Shift from Financial Companies to Individuals
Cumbersome Procedures Disappear, Enabling Innovative Financial Services

Finance is difficult. It is filled with confusing terms and complex backstories intertwined. Sometimes, you need to learn dozens of concepts just to understand a single word. Yet, finance is important. To understand the philosophy of fund management and consistently follow the flow of money, a foundation of financial knowledge is essential. Therefore, Asia Economy selects one financial term each week and explains it in very simple language. Even if you know nothing about finance, you can immediately understand these 'light' stories that turn on the bright 'light' of finance for you.

[Asia Economy Reporter Song Seungseop] If you were to pick one hot topic in the financial sector recently, it would undoubtedly be ‘MyData’. Some even call 2021 the ‘first year of MyData’. But what exactly is the concept of MyData? How is MyData utilized in the financial sector, and how will our lives change?

Let’s assume that A Internet Shopping Mall has been consistently purchasing products. Over time, more and more items you want to buy appear. This is because Company A analyzes personal shopping data and arranges products that you are likely to purchase. As a consumer, you receive personalized product recommendations that are truly necessary.

But what happens if you move to a newly emerged B Internet Shopping Mall? Since there is no data, you cannot receive recommendations. If you could transfer the data stored at Company A, convenient shopping would be possible at Company B as well, but this is impossible. Not only would Company A never transfer important customer data to its competitor B, but security issues are also involved.

A New Paradigm Establishing Data Sovereignty, 'MyData'

The same applies to finance. The longer you use one financial company, the more various information accumulates, such as debit and credit card performance, remittance details, and loan product usage status, but you cannot transfer this information elsewhere. Although the data was created by you, the authority belonged to the company that acquired it. As a result, data related to you was scattered across multiple banks, government, and public institutions, making it difficult to view at a glance.

MyData is a new concept where the entity that creates the information holds the authority over personal data. It means that you have the right to decide to view, provide, and access your data. Borrowing the expression from the Korea Data Industry Promotion Agency, it is a ‘paradigm establishing data sovereignty’.

The discussion on MyData surged rapidly due to the Data 3 Act (amendments to the Personal Information Protection Act, the Act on Promotion of Information and Communications Network Utilization and Information Protection, and the Credit Information Act) passed in January last year and implemented in August. The amendment to the Credit Information Act includes the ‘right to request transfer of personal credit information’, which means that individuals can request Bank A to send their information to Bank B.

Of course, you cannot just exchange all information indiscriminately. Currently, financial transaction information, national and local tax payment information, four major social insurance premium information, and communication fees are transferable. Also, for private corporations, the major shareholder must not have received warnings or disciplinary actions, and the company must have appropriate capital, security, and innovation capabilities to obtain permission to operate the business. Twenty-seven companies, including well-known commercial banks, card companies, financial investment firms, and fintech companies, have received full licenses.

Expect the Disappearance of Tedious Procedures and the Emergence of Innovative Services

How will your life change? The inconvenient and complicated procedures will be greatly improved. Previously, to use financial services requiring administrative documents at banks, you had to visit the community service center or print documents from the Government24 website. Then you had to submit these to the financial company and wait. With MyData services, you only need to decide to have the central administrative agency or local government ‘send my data to the bank’.

You can create a service that lets you see your personal information at a glance. If the data subject consents, financial company information can be pulled in to let you know the most advantageous loan, insurance, and deposit products for you. You no longer need to bother checking whether you qualify for government-supported policies for youth, newlyweds, multi-child families, or low-income households. You just need to ‘approve’ so that your scattered credit information, asset information, and documents can be checked automatically.

Licensed companies are preparing various businesses related to MyData. As the MyData business expands, even newer and more diverse services can be expected. Real estate applications can recommend the most suitable house and loan products based on your assets and preferences, and insurance companies can devise the best retirement plans based on your medical records and asset status.

Above all, many predict that the MyData industry will help advance the financial industry. When free data transfer was impossible, large banks with abundant customer data had an advantage. But now, smaller financial companies can also develop data-driven businesses, leading to many innovative services. This is why MyData is receiving so much attention in the financial sector.