Annual Payment Amount of 100 Trillion Won in 3 Years, 20% Financial Sales Target
Comparison and Recommendation from Payments to Savings, Loans, and Insurance
Generative AI Applied... Easily Find and Use Financial Products
Naver Pay has announced plans to increase its financial revenue, currently at around 5%, to 20% within three years. The strategy is to evolve beyond simple payment services into a comprehensive financial platform capable of hyper-personalization by leveraging Naver's newly announced generative artificial intelligence (AI) technology.
According to industry sources on the 25th, Park Sang-jin, CEO of Naver Financial, revealed this growth plan at the 'Team Naver Conference Dan23' held the previous day in Gangnam-gu, Seoul.
Currently, most of Naver Financial's revenue comes from the payment sector. According to the Financial Supervisory Service's electronic disclosure system, Naver Financial's revenue in the fourth quarter of last year was 319.9 billion KRW, of which financial sector revenue was 15.4 billion KRW, accounting for about 4.8%. This figure is lower compared to competitors such as Kakao Pay and Toss. For instance, Kakao Pay's financial sector revenue accounted for 12.8% (15.7 billion KRW) in the fourth quarter of last year, while Toss's financial business revenue ratio was 10.4% during the same period.
CEO Park announced the goal of transforming into a comprehensive financial platform and raising the financial revenue ratio to 20% within three years. Naver Pay plans to focus on the platform itself. Rather than increasing financial revenue generated from insurance and securities affiliates like Kakao Pay or Toss, the company intends to actively utilize Naver's AI technology to move beyond payments and become a 'hyper-personalized' financial platform where users can manage assets and compare and use services ranging from savings and deposits to loans and insurance.
The generative AI technology is a unique strength of Naver Financial. Next month, Naver will launch the generative AI search engine ‘CUE:’, which allows users to naturally ask questions like with 'ChatGPT' and accurately find desired financial products. For example, if a user asks, "Which areas have high price appreciation potential for 24-pyeong apartments near subway stations in northwest Seoul?", ‘CUE’ will recommend properties based on Naver Pay's real estate listings. Additionally, it will compare and recommend mortgage loans favorable to the user and enable one-stop payment for real estate brokerage fees through Naver Pay.
Based on an annual transaction volume and consumer data amounting to 60 trillion KRW, various financial technologies will be further advanced. Particular focus will be placed on alternative credit scoring (ACS), financial product comparison and recommendation, and differentiation of partner products. Through this, Naver Financial expects to differentiate its MyData services, which are already being implemented by several financial companies.
CEO Park emphasized, "Naver Pay has over 33 million members and a cumulative transaction volume last year comparable to the entire domestic e-commerce market at around 200 trillion KRW. We will actively expand our financial sector by evolving into a comprehensive financial platform based on technology, data, and traffic beyond payments."
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