In place of the secret numbers normally used to verify identity transferring funds online, Financial Services Commission Chairman Yim Jong-yong plans to allow the use of finger prints and iris scans. The chairman announced the FSC’s new measures, which he said would help in the development of the Fintech industry. He made the announcement at the 2nd Demo Day event.
The FSC intends to further loosen financial regulations on Fintech.
The FSC chairman made the remarks in answer to a complaint raised by a Fintech company official that regulations have been impairing the diversification of the identification methods.
Four Fintech firms including Wiz Domain, Irians and the Fintech, among others, signed MOUs with financial companies on the development of Fintech financial products. The Chit, in particular, signed an MOU with Woori Bank on the joint use of its fraud online fund transfer prevention technologies. Wiz Domain and Hyundai Securities would work together to develop technology for providing information on the under-rated listed firms this month. Hana Bank signed an MOU with Fintech, which has the technology to evaluate credit conditions using Big Data, while the Industrial Bank of Korea signed an MOU with Irians, which has the technology to indentify certifications with Irises.
The FSC also held the Demo Day event in March to help the Fintech and financial firms to come together to develop Fintch further.
Manager Chung Yu-shin of the Fintech Support Center said cooperative ties between Fintch firms and financial companies have been increasing with the commercialization of the Fintech services also gradually gaining ground, but steadily helping the growth of the ecological system of the Fintech products market.
Also present at the event were two British Fintech firms, Level 39, whose main job is to extend help in Britain to Fintech start-ups, venture start-ups, as well as the investors in Fintech firms who are interested in Fintech firms in Korea. Level 39 signed an MOU with the Fintech Support Center to extend its hand to Fintech start-ups in Korea. Eri Van Der Klei, the founder and the CEO of Level 39, said he would like to invest in some of the promising Fintech start-ups in Korea, as he would like to help the Korean Fintech firms to grow to be the leaders of the global Fintech market.
The FSC chairman also said technology loans will be maintained as they are a kind of loan on technology as mortgages. Chairman Yim made the remark at a meeting of the credit evaluation organizations and those in charge of technology loans at financial institutions at the Korea Press Center in Taepyeong-ro, downtown Seoul on May 29. Yim has been concerned that the technology loans would disappear as the presidential term comes to a close, like the Green Loan Program four years ago, and he wanted to make sure the Technology Loan Program would continue to be run by the banks. The program was launched to give financial support to SMEs that have no mortgages to give to back up their loans as demanded by the financial institutions, so that they would grow enough to play a big role in the growth of the national economy. There were concerns that the start-ups cannot get loans at an early enough stage of their development — when they need liquidity the most.
According to the FSC chairman’s comments on a local radio on May 31, the easing of financial regulations on real estate as collateral will not be suspended at the end of July. He said the financial authorities would not strengthen the regulations on real estate lending (LTV) and DTI. Yim also said the household loan default rate is not a problem, with financial assets owned by households amounting to 2,400 trillion won, which is double the debts amounting to 1,100 trillion won. The the default rate is staying at around 0.5 percent.
_임종룡 데모데이.jpg)
_데모데이 02.jpg)
