SEOUL, June 4 (Korea Bizwire) – From September or sooner, Korean financial institutions will be able to freely use personal credit information on the condition that individuals are not identified, giving them a way to offer financial products using big data collected from consumers.
The Financial Services Commission (FSC) decided on June 3 to move forward with the change to revitalize the use of big data in financial services. Information available for use includes financial transactions, credit ratings and income, without personal data like names, phone numbers and personal identification numbers.
The current Use and Protection of Credit Information Act defines such data as personal credit information regardless of the possibility of personal identification, and obliges financial institutions to get consumers’ approval before using the information. The FSC sees the law as prohibiting the use of financial information big data.
Foreign financial firms are aggressively adopting the use of big data to attract more customers by offering marketing activities such as issuing discount coupons based on purchase patterns. Most advanced countries do not regard credit information stripped of personal identification data as personal information.
The regulator will offer guidelines to erase personal identification data from the credit files, while allowing financial firms to use the anonymous credit information. Collected credit information without personal data will be sent to a central body, which will offer the big data to financial firms and fintech companies.
An official at the FSC said, “By easing the regulation on big data, we will construct a big data eco-system in the financial sector. We expect fintech and financial firms to grow further, and consumers to benefit from their advanced services.”
By John Choi (firstname.lastname@example.org)