[1mm Financial Talk] Samsung Integrated App ‘Monimo’ Launches… 25 Million Customers VS No Differentiation

25 Million Customer Integrated Service 'Strength'... Skepticism Over Functional Differentiation

[Asia Economy Reporter Yu Je-hoon] Financial affiliates under Samsung Group have launched the integrated financial platform ‘Monimo’ following the release of their brand identity (BI), Samsung Financial Networks, challenging the fiercely competitive digital financial market dominated by big tech companies. Industry experts are divided between optimism, citing the combined membership of Samsung financial companies reaching 23 to 25 million users as a potential game-changer, and skepticism, pointing out the lack of distinctive features compared to other financial firms at present.

On the 14th, the four Samsung financial companies?Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Card, and Samsung Securities?announced the launch of Monimo, the integrated financial application by Samsung Financial Networks. Monimo is an integrated platform prepared since last year to enhance differentiated customer convenience amid the rapidly changing financial environment.

Monimo enables one-stop processing of major services that previously required applications through each company’s website, such as insurance claims (Samsung Life Insurance), automobile breakdown assistance (Samsung Fire & Marine Insurance), credit card limit increase requests (Samsung Card), and fund investments (Samsung Securities). Additionally, it offers comprehensive financial services not previously provided by Samsung Finance, including ▲account integration management ▲easy remittance ▲credit management ▲currency exchange ▲real estate and automobile price inquiries.

Samsung’s establishment of both an integrated BI and platform aims to counter big tech companies rapidly dominating the financial market based on their platforms. For example, Kakao is rapidly expanding its reach from the KakaoTalk platform, which has 50 million monthly users, to Kakao Pay (simple payment), Kakao Bank (banking), Kakao Pay Securities (securities), and recently received full insurance business approval from the Financial Services Commission for Kakao Pay Insurance.

Monimo’s greatest strength lies in the customer data of Samsung financial companies, which amounts to approximately 32 million users. Even after excluding duplicates, the number stands at 23 to 25 million, comparable to the monthly active users (MAU) of major big tech companies such as Kakao Pay (20 million) and Naver Pay (16 million). Industry insiders particularly expect significant synergy if Monimo is combined with Samsung Pay, a simple payment service with 15 million subscribers.

However, there is considerable skepticism within the financial sector. The various integrated services offered by Monimo are seen as no different from the ‘one app’ strategies pursued by other financial sectors since last year. A representative from the card industry commented, "The evolution of financial company apps into financial life platforms is an overall industry trend," adding, "At present, it seems to be merely a revamped version of the existing Samsung Card ‘MyHome’ app."

Moreover, unlike competitors such as big tech and financial firms that have obtained personal credit information management licenses (MyData) allowing them to collect and display customers’ data from other financial companies at once, Samsung Card’s related business is currently stalled. This is because its major shareholder, Samsung Life Insurance, received a severe disciplinary action?a ‘institutional warning’?from financial authorities, making it impossible to obtain approvals or permits for new business ventures for at least one year. This has led to speculation that Monimo is a reluctant, last-resort measure.

Meanwhile, some interpret the launch of Monimo as a move anticipating the introduction of the ‘Comprehensive Payment Service Provider’ system currently under discussion by authorities and politicians. This license allows providers to issue accounts to customers and offer integrated digital payment services including deposits and withdrawals, simple payments, remittances, salary transfers, and payments for card bills and insurance premiums. It covers most banking operations except deposits and loans.

Although the revision of the Electronic Financial Transactions Act incorporating this system is still delayed, the insurance industry has recently proposed allowing comprehensive payment services to the Presidential Transition Committee, reflecting growing industry interest. A financial sector official stated, "The functions and content included in the Monimo app are already offered by other financial companies," adding, "It seems they hurriedly launched the integrated app with the future introduction of the comprehensive payment service provider system in mind."