Banks Expand Ancillary Services as Authorities Ease Regulations

[Asia Economy Reporter Song Hwajeong] As financial authorities ease regulations on banks' ancillary businesses through financial regulatory innovation, banks are increasingly expanding their ancillary business operations.

According to the Financial Services Commission on the 8th, Shinhan Bank and Woori Bank consecutively reported their ancillary businesses last month.

Shinhan Bank reported the sale of MyData software as an ancillary business on the 23rd of last month. This involves selling software programs and database materials built for MyData services to other MyData operators and prospective operators. Earlier this year, with the full implementation of API-based financial MyData services, Shinhan Bank officially launched the MyData service "Moneyverse." Based on the experience accumulated through Moneyverse, Shinhan Bank plans to support small and medium-sized enterprises' participation in the MyData market. A Shinhan Bank representative explained, "By turning the know-how of the Moneyverse service into a solution and providing it externally, we will support small and medium-sized enterprises' participation in the MyData market and contribute to increasing consumer benefits through the activation of various MyData services."

Woori Bank applied for supply chain management platform services as an ancillary business on the 26th of last month. Through this, Woori Bank plans to provide corporate clients with supply chain management services such as purchasing, contracting, and ordering goods, as well as financial services linked to the bank's internet banking and management support services. Woori Bank has been preparing the corporate digital supply chain platform "OneBiz Plaza" with the goal of launching the service in September.

As financial authorities have decided to ease regulations on ancillary businesses to create conditions for banks to leap into digital universal banks, banks are expected to actively expand their ancillary businesses in the future. Previously, at the 2nd Financial Regulatory Innovation Meeting last month, the Financial Services Commission reviewed measures to activate platform financial services and decided to ease related regulations by flexibly interpreting whether banks can provide various financial and non-financial services as ancillary businesses to support the establishment of digital universal banks. Accordingly, through authoritative interpretation, banks' electronic document mediation services, identity verification services, and various platform services have become possible as ancillary businesses. The Financial Services Commission is considering continuously expanding the scope of work and simplifying related procedures through future legislative amendments.

A financial industry official said, "Banks have continuously requested the easing of regulations on ancillary businesses, and as authorities are actively promoting financial regulatory innovation, the expansion of banks' ancillary businesses is expected to proceed rapidly in the future."