Consumers can conveniently conduct banking transactions by registering all of their bank accounts in one bank app. (image: Korea Bizwire)
SEOUL, Oct. 30 (Korea Bizwire) — A so-called “open banking” service, which allows users to withdraw and transfer money from multiple bank accounts using just one mobile application, will be put into operation on a trial basis.
Ten major South Korean banks, including KB Kookmin Bank and Shinhan Bank, began piloting open banking at 9 a.m. on Wednesday.
Open banking refers to a system under which a bank discloses its payment functions and customer data to a third party.
Accordingly, consumers can conveniently conduct banking transactions by registering all of their bank accounts in one bank app.
Until now, individuals doing online banking had to make use of different apps for accounts at separate institutions.
In the future, however, one app will suffice for transactions at all of the major banks.
In addition to transfers, including deposits and withdrawals, and inquiries, including balance, account details, account name and remittance information services, loans, asset management, and financial instruments will be available for purchase via one application.
However, deposits into virtual accounts that are used for e-commerce purposes will be restricted as only accounts for deposits and withdrawals are free to use on the app.
The financial authorities plan to resolve the issue of limiting deposits in virtual accounts through computation development.
Furthermore, authorities also plan to work on strengthening security against fraud, such as hacking and voice phishing, and develop additional methods to protect consumers.
Kevin Lee (kevinlee@koreabizwire.com)
