[fintech fever] Bank and startups join to preempt the market
Mobile phone related products like biometric authentication (finger prints, pulse of vein, Iris recognition) is greatly enhanced.
Since the government is deregulating on fintech business, banks have become busier than ever before. Especially, biometric authentication is focusing on mobile phone services. The technique specialists are also making business strategic meetings to strengthen its service. Banks are beginning to apply biometric authentication. Since they are strengthening non-face-to-face channels it is likely for them to apply it. Financial transactions by private certification with checking pulse of vein could be possible at early next year.
The biometric authentication technology has no possibility of theft or lost therefore it is likely to take place in the next-generation identity authentication system.
The biometric authentication (pulse of vein) system that Shinhan bank applied was the technology developed by Fujitsu. It read the pattern of vein which is at inner skin of one’s palm of hand.
The error rate of authentication with vein is 0.0001% which is much faster and accurate than finger prints (error rate of 4.0%). Once the authentication of vein is applied; withdrawal, remittance, bank transfer could be done by checking a palm of hand with a sensor at the kiosk. Therefore those financial acts do not have to take place by having accounts or debit cards.
Hana financial has made an business agreement with ETRI (Electronics and Telecommunications Research Institute) to apply the biometric authentication (iris, voice, face, and finger prints) from next January. KB financial group has demonstrated various biometric authentications at the 2nd fintech day, last August.
Woori bank has already introduced ATM machines that work with ‘SamsungPay’ of Samsung electronics. IBK industrial bank has also made an agreement with Irience for iris authentication.
“Let’s get Eumji (Eumji means thumb in Korean) group” is special campaign for e-commerce companies.
Woori bank has promoted the first mobile banking loan “We be mobile loan” this May; the loan went 6.8 million USD monthly and recorded it cumulative loan to be 34.3 million USD. Woori bank is currently being a pioneer of mobile phone business after launching ‘We be SOHO mobile credit loan’ this September. Woori bank official said that they were going to survey and use various big data from SNS to analyze credits. And more various applications will be added to mobile app, ‘We be talk’.
Shinhan bank is launching ‘Sunny bank’, an application for loaning service. ‘Sunny bank’ with wallet can be downloaded and used as credit card across 70,000 franchises. Shinhan bank is also considering its ATM to serve FX and loan.
KEB Hana bank will be launching ‘one queue bank’. It is a convenient service with biometric authentication (iris and finger prints) for everyone. Except from remittance service and a loan came from use of big data, various functions will be added that are integrated to Hana members.
‘Start up cooperation’ to cover the defects
Though the commercial banks are actively running fintech businesses however they would not cover all. For a big company like bank, it is hard to turn the direction of business once it turned out to be unsuccessful. To solve this problem, banks are partnering with fintech startups. This kind of business is prevailed recently.
Kookmin bank has made a strategic partnership with Coinplus for blockchain based FX business. Coinplus processes 12 patents on blockchains and it made virtual currency exchanger, bitcoin payment solution on application, and prepaid card or wallet with bitcoin services etc. commercially available.
Woori bank has made partnerships with 5 fintech companies; IrisID (iris authentication), InterPay (Smart OTP), Coinplus (fraud prevention), Hancom fintech (Crowd funding), and Heenam (mobile data extraction technique).
Hana bank is also speeding up its business model by building alliance with 4 fintech startups; Winningi (recognizing ID on untouched fingerprints), SENTBE (blockchain based global remittance), 12cm (Smart stamps online to offline marketing platform), and Paygate Co., Ltd (blockchain based web standard fintech platform).
Shinhan bank is also directly investing on promising fintech in ‘Shinhan future’s lab’. The mount is 1.7 million USD.