Financial services in Korea are evolving every year. There is a high demand in Korea for a system that allows them to easily manage and move money in real time. Currently, that involves opening up an app but soon could be asking an AI to do it for you. The number of South Koreans who used internet banking services grew last year because of the increased use of smartphones. With the vast majority of Koreans having smartphones, digital transformation requires new strategies and priorities for fin tech companies in 2017.
The biggest fear among Koreans who do not use internet banking in Korea is security. IoT Technology currently has the potential to deliver a 24/7 banking experience but as to keep in mind the importance of having a strong authentication process and a secure way of holding a customers information. As technology improves so do the hackers. Korean banks are starting to look to third party Fin Tech companies to help with security issues. Before many thought the banks were at odds with Korean Fin-Tech startups. However, rather than going directly to banking customers, more Fin Tech firms in Korea are looking at banks as their partners and the banks are looking at the Fin-Tech firms in the same way.
So how fast is internet banking growing in Korea? The percentage of South Koreans aged 12 or older used online banking services were 57.5% in 2016. In 2015 the percentage was at 52.5%. Which means that easily over 60% of South Koreans will be using online banking services in 2017. There will be more options to Fin-Tech in 2017 such as budgeting, making payments, making investments, and wealth management. Fin-Tech apps are being created all the time in Korea to help Koreans with their finances. The smartphones of today are changing the payment process and fueling the consumer’s need for real-time payments. Those in Korea that already use internet banking services in 2016, 87.1 percent say they use their smartphones rather than their computers for their internet banking needs. That is up 11.5% from 2015.
There is a huge demand for faster money movement as well as an integrated payment experience that makes it easier to pay bills, send money to friends, make payments, and make external transfers. In Korea now, making payments on your smartphone is now expected. However, this could be just the tip of the iceberg when it comes to the ever-changing Fin Tech world. New and innovative changes are happening in digital banking and Korea is at the forefront. With changes happening rapidly, Korean Fin Tech startups need to be able to plan for it and be able to move quickly and adapt.