Activation of Designated Agents and Entrusted Testing System
Networking with Representatives from 31 Financial Companies and 5 Investment Institutions
On the 29th, the Financial Services Commission announced that it held the "2nd Financial Company-Fintech Company Mutual Meet-Up Event" at Front1 in Mapo, Seoul, chaired by Secretary General Kwon Dae-young. The mutual meet-up event, first held in November last year, is expected to become a regular quarterly event from this year, serving as a platform for interaction between financial companies and fintech firms.
This event was organized to revitalize the designated agent and delegated testing systems, which are part of the financial regulatory sandbox framework based on collaboration between financial companies and fintech firms. It reflects feedback from the fintech field that there have been limited opportunities for communication between fintech companies and financial institutions, resulting in relatively low utilization of these two systems.
Previously, as the first initiative, five fintech companies presented their projects through the delegated testing system in collaboration with banks, insurance companies, and securities firms. These projects included ▲a full-cycle management system for jeonse (long-term lease) periods such as safety diagnosis of jeonse contracts, non-face-to-face moving-in notifications and fixed date applications, and registration information monitoring ▲a voice recognition solution dedicated to the financial industry ▲a pet insurance system that evaluates calorie intake and patellar luxation using Internet of Things (IoT) devices ▲an IoT-based telematics device for automobile insurance that minimizes errors in driving information ▲a dynamic financial asset securitization platform service.
The event began with a congratulatory speech by Secretary General Kwon Dae-young of the Financial Services Commission, followed by an introduction to the financial regulatory sandbox system by the Korea Fintech Support Center. Then, DS Solutions and AIMS, which utilized the designated agent and delegated testing systems to collaborate with financial companies, presented their success stories. Seven fintech companies hoping to collaborate with financial institutions also introduced their services.
In his congratulatory speech, Secretary General Kwon said, “I hope today’s event will trigger the creation of an ideal innovative financial ecosystem where financial companies, which reliably provide various financial services to a large number of customers, actively collaborate with fintech companies that possess creative ideas and technological capabilities.” He added, “We will regularize the event and expand the participating financial companies to establish it as a channel for continuous communication between financial companies and fintech firms.”
This event saw an increase in participating financial companies to 31, up by six from the first event, and investment institutions that did not participate previously also joined, expanding opportunities for collaboration and investment attraction for fintech companies. After the event, if fintech companies and interested financial institutions proceed with collaboration, they can apply for designation as a designated agent or selection for delegated testing depending on the collaboration method. The Korea Fintech Support Center plans to provide up to 120 million KRW annually in financial support to fintech companies that successfully collaborate with financial institutions. The support recipients will be selected after evaluating the necessity of test cost support following applications from companies wishing to receive assistance.
Meanwhile, on the 15th, the Financial Services Commission published a collection of best practices for the designated agent and delegated testing systems to help fintech companies and financial institutions better understand these two systems by introducing actual utilization cases. The casebook will also be distributed to attendees of this event and can be downloaded for free from the financial regulatory sandbox website and the fintech portal. From this year, the mutual meet-up event will be held regularly on a quarterly basis.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
