MyData Integration... Financial Holding Companies' 'Super App War'

KB Financial Group Ends 'Money Crew' Service
"Merged with Similar Functions"
Integration Made Easier by MyData Technology Advances
However, Usability and Stability Must Be Improved

Competition among super apps that gather the core services of each affiliate of the five major financial holding companies is fierce. They are striving to become more perfect super apps by attempting to consolidate MyData (personal credit information management) services. However, challenges remain in improving the usefulness of MyData-based services and enhancing the stability of the applications (apps) themselves.

KB Kookmin Bank will terminate ‘Money Crew,’ one of the MyData services within KB Star Banking, on the 21st of next month. It is a collective intelligence-based asset management service that has been available since the pilot implementation of MyData services in 2021 and was once called a ‘core content.’ Users can share their asset portfolios, view others’ portfolios, and communicate like on social networking services (SNS). Kookmin Bank explained, “The service is being consolidated because there are other similar functions.”

KB Financial Group has been continuously making such reorganizations. This is part of a strategy to turn KB Star Banking into a super app by utilizing MyData. KB Star Banking was created in 2021 to handle about 70 tasks from six affiliates. In 2022, it also integrated the MyData-based asset management dedicated app ‘My Money’ into Star Banking. As a result, it has shown achievements such as surpassing 11 million monthly active users (MAU).

MyData provides customized financial services based on personal credit information scattered across existing financial institutions such as banks and government agencies. Based on this, financial companies can analyze consumers’ financial status to offer consulting or recommend financial products. By sharing information among affiliates, they can create synergy, such as introducing consumer-tailored products.

Most financial holding companies are integrating their affiliate apps into one. Hana Financial Group launched ‘Hana One Q’ in August 2020. Various financial transactions, including stock trading and insurance diagnosis, can all be done through this app. In particular, it offers services such as ‘Hana Hap,’ a MyData-based hyper-personalized digital asset management platform. NH Nonghyup Financial Group also provides not only banking services and core services of financial affiliates but also lifestyle services through NH All One Bank. Woori Financial Group plans to launch the super app ‘New One Banking’ in November this year. Shinhan Financial Group created a super app while keeping its existing apps unchanged. It launched ‘Shinhan Super SOL’ in December last year. It combined the core functions of financial apps from five major group companies, including banking, cards, securities, and life insurance. It surpassed 1 million subscribers within five days of launch and exceeded 3.55 million as of the 26th.

However, a hurdle is that consumers have not yet felt the usefulness of MyData services, resulting in low utilization of super apps. According to the ‘Korea Financial Consumer Report 2024’ published by Hana Institute of Finance, the highest proportion (48.1%) of those who experienced the service responded that they used MyData services because “various benefits were provided through events upon subscription.” In other words, Hana Institute of Finance explained that the service needs to be refined and advanced enough for consumers to feel its usefulness and voluntarily spread the service.

Another challenge is to further enhance app stability to create a super app as representative as Toss. For example, if a securities affiliate’s app is included in the super app, there may be no alternatives if problems such as app freezes occur. A banking industry official said, “In the case of securities apps, real-time trading is required, and if the app freezes, it could lead to lawsuits,” adding, “Since the app size grows and functions become too numerous when consolidating into one super app, it will take some time to perfectly integrate everything into one.”