This story was delivered to BI Intelligence "Fintech Briefing" subscribers. To learn more and subscribe, please click here. This month, the Korean government will launch a platform for financial institutions that will allow them to build services that automatically populate financial information for new customers, according to Korea Joongang Daily. It looks like the platform will essentially serve as database of consumer financial information that is accessible via API. The platform will be managed by Korea Financial Telecommunications and Clearing Institute and Koscom Corporation and counts 16 banks and 25 brokerage firms as partners. Earlier this week, the UK's Competition and Markets Authority (CMA) released a report announcing that it would require banks to participate in a similar open banking initiative. Eliminating friction is one of the keys to fintech adoption. Consumers may know what frustrates them about their current financial services experience, but they don't necessarily invest time in seeking out alternatives. A formidable barrier to trying out new services is having to find and enter financial information. Once that barrier is removed, it will be much easier to switch providers, forcing financial services companies to innovate in order to stay competitive. In addition, providing fintechs with access to the platform will allow them to devote more time and resources to developing great products, rather than developing data partnerships with legacy institutions. Like other countries around world, Korea is racing to attract capital to build a fintech ecosystem. Korea's economy has suffered recently due to a drop in tourism and falling exports. The government is taking number of actions to recover, including loosening regulations in the financial services industry to encourage the growth of fintechs, according to Yonhap News. In particular, nonbanks can now facilitate money transfers, helping to draw foreign money transfer firms into the country. Korea also plans to lift restrictive policies to allow internet-only banking. We’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs. No firm is immune from the coming disruption and every company must have a strategy to harness the powerful advantages of the new fintech revolution. The battle already underway will create surprising winners and stunned losers among some of the most powerful names in the financial world: The most contentious conflicts (and partnerships) will be between startups that are completely reengineering decades-old practices, traditional power players who are furiously trying to adapt with their own innovations, and total disruption of established technology & processes: As you can see, this very fluid environment is creating winners and losers before your eyes…and it’s also creating the potential for new cost savings or growth opportunities for both you and your company. After months of researching and reporting this important trend, Evan Bakker, research analyst for BI Intelligence, Business Insider's premium research service, has put together an essential report on the fintech ecosystem that explains the new landscape, identifies the ripest areas for disruption, and highlights the some of the most exciting new companies. These new players have the potential to become the next Visa, Paypal or Charles Schwab because they have the potential to transform important areas of the financial services industry like: If you work in any of these sectors, it’s important for you to understand how the fintech revolution will change your business and possibly even your career. And if you’re employed in any part of the digital economy, you’ll want to know how you can exploit these new technologies to make your employer more efficient, flexible and profitable. Among the big picture insights you'll get from The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry: This exclusive report also: The Fintech Ecosystem Report: Measuring the effects of technology on the entire financial services industry is how you get the full story on the fintech revolution. To get your copy of this invaluable guide to the fintech revolution, choose one of these options: The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of financial technology.
The Korean government is launching a database of consumers' financial information to provide financial services companies with data that will automatically populate the apps they build. The platform, which counts 25 banks and 16 brokerage firms as partners, aims to eliminate barriers that discourage consumers from trying out new services, make it easier for them to switch providers, and force companies to provider more innovative and competitive services. decades , the Korea ’s Competition and Market Authority released a report announcing it would require banks to participate in a similar initiative.