SEOUL, Feb. 10 (Korea Bizwire) — South Korean lenders and technology firms are quickly uniting in their latest efforts to jump on the FinTech bandwagon as the once-high boundary between the two industries is blurring with the rise of mobile banking, market watchers said Tuesday.
Woori Bank, the flagship unit of state-run financial group Woori Financial, forged a partnership with No. 2 mobile carrier KT on using its location-based system to track movable assets such as vehicles and machinery.
The lender said it hopes the new system will help more borrowers use movable assets as collateral, given that property assets are usually preferred due to their immobility.
Woori Bank also plans to use KT’s near field communication technology to boost marketing by sending mobile coupons or product advertisements to customers in the area.
“The business cooperation on FinTech will set a good example on creating synergy between two different industries. Through Internet of Things (IoT) technology, consumers will enjoy more convenient financial services,” KT Chairman Hwang Chang-gyu said in a press release.’
Last week, Hana Bank signed a strategic agreement with Daum Kakao, operator of the country’s most-used mobile messaging app Kakao Talk.
The tech behemoth, which has been testing new business areas outside of mobile communication, recently launched mobile payment services Kakao Pay and Bank Wallet Kakao.
Following the agreement, Hana Bank and Daum Kakao launched a savings deposit product which offers a 2 percent interest rate for users of Bank Wallet Kakao, according to the two companies.