[The Long Road for MyData]⑤ Rapidly Transforming Global Banks... Slow Innovation in Korean Banks

Overseas Banks Apply Subscription Services Like Netflix
Manage Expenses and Encourage Fund Subscriptions
Expand Partnerships with Other Industries

Domestic Banks Still at Financial Information Provision Level

[Asia Economy Reporter Sim Nayoung] Bank Of Ireland applied Netflix's characteristic 'subscription' model to banking services. Instead of charging fees per transaction for transferring to other people's accounts or maintaining one's own account, they switched to a subscription model. Customers pay a monthly fee based on their tier and frequently used services to access integrated services. There is also a product called the 'Rainy day fund' designed for situations requiring a large sum of money, such as unemployment or moving. Bank Of Ireland analyzes individual deposits, card usage, and investment details to calculate monthly essential living expenses, possible savings amounts, and expected fund preparation periods, then informs customers and encourages fund enrollment.

Narrowing the Gap with Overseas

Major banks in Europe and the United States are rapidly transforming by utilizing MyData services. The evolution of MyData is divided into 'Analysis and Recommendation' (Stage 1), 'Real-time Support' (Stage 2), and 'Prediction and Response' (Stage 3). Overseas banks are preparing for Stage 3 beyond Stage 2. In contrast, domestic banks only provide customers with information such as 'Your current asset status is aggressive investment type. You should diversify with safe investment products' through MyData apps. Domestic banks, still at Stage 1, face the challenge of narrowing the MyData service gap with overseas banks.

U.S. bank Wells Fargo launched the 'Smart Credit Center,' a platform focused on debt management. It features managing customers' credit scores, which have the greatest impact on loan applications. It links monthly personal financial activity data to inform ways to improve credit scores and shows graphs of credit score changes. It also suggests optimal choices customers can take, such as interest rate reductions, early repayments, term extensions, and refinancing.

Royal Bank of Canada (RBC) is moving toward 'Prediction and Response (Stage 3).' They released NOMI (Know Me) Forecast, which uses AI with financial behavior prediction technology. Currently, it shows scheduled weekly expenses such as apartment management fees, insurance premiums, real estate loan repayments, and communication charges, but plans to soon offer services predicting irregular spending like shopping and cultural activities.

Expansion to B2B MyData

Dutch bank ABN AMRO expanded the MyData domain by partnering with other industries. It organizes subscription service lists and amounts like Netflix or YouTube into monthly, quarterly, and scheduled payment amounts, allowing customers to view them at a glance and cancel unused services directly from the bank application (app).

Some countries have developed corporate-to-corporate (B2B) MyData services in banking. Spanish banks including BBVA and Santander have a symbiotic relationship with fintech company Strands, which provides 'financial management services for sole proprietors.' Strands tracks cash flow across all accounts of business owners, offers a financial calendar showing spending habits, and a community service to compare spending behaviors. It also introduced an 'ok-to-spend' feature that shows small business owners how much they can spend today within a range that does not affect account balances. Through Strands, over 700 banks acquire small business financial data and recommend and sell loan products.

Saerom Lee, Senior Researcher at Woori Financial Management Research Institute, said, "Domestic banks are still focusing only on providing integrated financial information and recommendations," adding, "They lack detailed management, real-time recommendations, and customer response like global banks, so it is necessary to develop services by referring to overseas bank cases."