Starting next year, consumers in areas without bank branches will be able to access bank loan products through post offices. A new service will also be introduced where an artificial intelligence assistant requests interest rate reductions from financial institutions on behalf of borrowers.
The Financial Services Commission announced on the 21st that it has designated bank agency services and MyData-based interest rate reduction request services as innovative financial services. The decision was made at a regular meeting held on the 17th.
The bank agency service was created to address inconveniences in areas where access to financial services has become difficult due to the reduction of bank branches. The core concept allows third parties to perform tasks that are legally permitted only for banks under the Banking Act. This requires an amendment to the Banking Act. With this innovative financial service designation, a pilot program will proceed ahead of institutionalization through legal revision.
The four major banks—KB Kookmin, Shinhan, Woori, and Hana—along with Korea Post and nine savings banks (Dongyang, Moa, Central, Osung, SBI, Incheon, JT Chinae, Jinju, and Hansung) have been designated as innovative financial service providers. As a result, consumers will be able to handle major banking services including deposits, savings, loans, and transfers in person at post offices or savings banks. However, core decisions such as loan screening and approval will remain with the banks. Entrusted institutions will handle customer consultation and application processing.
In the first half of next year, loan products from the four major banks will first be available at approximately 20 regional post offices nationwide. Bank deposit product sales and services through savings banks will be implemented sequentially afterward. The FSC expects that financial accessibility will improve while consumers will be able to compare various deposit and loan products in one place.
The interest rate reduction request service using MyData will also be implemented starting in the first quarter of next year. Personal MyData service providers will analyze changes in borrowers' credit status on their behalf, and if prior consent is given, automatically request interest rate reductions from financial institutions. If a rate reduction is not granted, the service will analyze the reasons and inform the borrower. Initially, the service will apply to personal loan products at 13 banks. The FSC is considering future expansion to secondary financial institutions including savings banks and specialized credit finance companies.
