Samjong KPMG Identifies Key Issues in Digital Finance
Emphasizes Need for Sustainable Innovation Amid Intensifying Competition
Samjong KPMG has selected and announced the seven major issues in the financial industry this year, including network separation and the fourth internet-only bank. The analysis emphasizes the need to establish a sustainable innovation system as digital finance competition intensifies.
On the 18th, Samjong KPMG published a report titled 'Key Issues in Domestic Digital Finance in 2025' containing these insights. The report diagnosed that while fintech companies are growing and big tech companies are expanding platform finance successfully, a reassessment is necessary to secure competitiveness on the global stage. According to the report, as of 2023, five domestic banks were included among the world's top 100 banks by capital, but only two were included based on digital transformation maturity.
The report identified the major issues in the financial industry this year as the background for this diagnosis: ▲ relaxation of network separation regulations ▲ improvement of payment and settlement systems ▲ launch of the fourth internet-only bank ▲ MyData 2.0 ▲ virtual asset market trends ▲ utilization of innovative financial services ▲ advancement of fintech companies.
First, with the phased relaxation of regulations according to the roadmap for improving network separation in the financial sector, the use of artificial intelligence (AI) and cloud technologies is expected to become more active. Additionally, as the regulatory framework for e-commerce platforms and electronic payment gateway (PG) companies is reorganized, restoring the safety of e-commerce and trust in payment infrastructure, such as the obligation to separately manage sales proceeds, is emerging as an important task.
It is anticipated that competition will intensify further once the fourth internet-only bank is authorized within the year. Qualitative growth and differentiation of MyData services will also be promoted, including allowing offline subscriptions, simplifying information transmission, and strengthening security.
Attention to the virtual asset sector was also urged. This is because phased permission for virtual asset transactions by corporations, the introduction of token securities systems, and second-phase legislative discussions related to virtual assets are expected to proceed domestically. Innovative services such as AI-based financial services utilizing the financial regulatory sandbox and collaboration between non-financial and financial companies are also expected to expand further. Along with this, as the financial performance of some fintech and big tech companies improves, initial public offerings (IPOs) and overseas market expansion are projected to become more active.
The report emphasized the need to capture these changes and establish innovative business models and risk management strategies. For financial companies, it proposed reorganizing governance systems capable of promoting digital finance and AI policies, restructuring online and offline channels, and strengthening data utilization capabilities. For non-financial companies, it analyzed the necessity to strengthen compliance considering new regulatory requirements and to prepare strategies that actively utilize regulatory sandboxes in cooperation with financial companies.
Lee Dong-geun, Executive Director of Samjong KPMG, explained, "As digital finance competition becomes fiercer, enhancing companies' competitiveness in financial services is more important than ever," adding, "It is necessary to establish a ‘sustainable digital innovation system’ that can maximize the outcomes of digital finance while proactively responding to risks brought by new digital technologies such as AI."
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