"How About Switching Your Savings Account?" One-Stop Savings and Deposit Comparison and Subscription Service Starting in June

Reviewing Formal Institutionalization Next Year After Pilot Operation
Currently 9 Companies Preparing... About 10 More Including Fintech and Credit Finance Companies Also Getting Ready to Enter

In June, an intermediary service for deposit products will be launched online, allowing users to compare, receive recommendations, and complete subscriptions for various financial institutions' savings and deposit products in a 'one-stop' process. The financial authorities plan to consider formal institutionalization next year after a pilot operation.

On the 23rd, the Financial Services Commission announced that such measures were discussed at the 4th Task Force (TF) meeting on banking management, sales practices, and system improvements, held on the 22nd at the Government Seoul Office in Jongno-gu, Seoul, chaired by Vice Chairman Kim So-young.

Previously, the Financial Services Commission designated deposit product intermediary services from nine companies as innovative financial services. Initially, brokerage sales were not permitted for deposit products, but due to increasing consumer demand for asset management and the significant reduction in risks of financial fraud through digitalization and platformization, this change was made.

The service targets fixed savings and deposit products from banks and savings banks. However, to prevent instability in financial institutions caused by excessive fund transfers, limits are set on platform sales proportions per financial company. For banks, the limit is 5% of the previous year's new deposit recruitment amount, and for other financial companies, it is within 3%.

Once the service starts, the process for financial consumers to compare and subscribe to deposit products is expected to become very convenient. Previously, consumers had to check simple information provided by portal sites or financial platforms, then subscribe through each financial institution's branch or non-face-to-face channels (mobile or PC). After the service launch, platforms will offer not only simple information but also product comparison and recommendation services, enabling one-stop subscription.

In terms of post-management, whereas consumers previously had to manage maturity or switching by monitoring interest rates themselves, this service will provide management services such as maturity alerts and switching recommendations through the platform.

According to the Financial Services Commission, nine companies are currently preparing for the service launch by conducting pre-verification of comparison and recommendation algorithms, establishing consumer protection measures, and forming partnerships with financial companies.

The authorities plan to conduct designation reviews for additional applicants for innovative financial services by May. It is reported that more than ten companies, including fintech firms and existing financial institutions, have submitted demand surveys for innovative financial services.

A Financial Services Commission official stated, “There is strong demand not only from fintech companies like MyData operators but also from credit card companies and existing financial institutions,” adding, "We plan to actively designate applicants who meet the review criteria so that consumers can use services through various platforms."

Meanwhile, based on the pilot operation results this year, the Financial Services Commission will consider formal institutionalization of the deposit product intermediary service next year. They will examine whether excessive deposit competition occurs through platforms and whether there are any cases of incomplete sales, and also explore ways to ease existing regulations.

For example, expanding the scope of intermediary products from existing fixed savings and deposit products to include demand deposit products (parking accounts) to ensure effective competition among banks, or increasing platform recruitment limits per financial company (5% for banks, 3% for others) are under consideration.

Vice Chairman Kim said, “For this service to properly act as a catalyst for competition, it is necessary to thoroughly manage competition among multiple platforms, participation of many financial companies, fairness of algorithms, consumer protection, and prevention of system instability caused by excessive money movement,” and requested, "Please comprehensively consider these aspects during the service operation process."