“Conventional financial institutions are slow with technical revolution. They have to cooperate with the Fintech industry.”
According to Soyeong Park, the chairwoman of Korea Fintech forum, “In order to launch a financial service integrated with IT (Information Technology) successfully, the relationships between financial institutions and Fintech startups should be more proactive.”
She also mentioned, “Although the willingness to cooperate between Fintech companies and existing financial companies (banks and stock exchange markets) is high, real seamless communication between the two has yet to take place.”
She is part of the first generation of Fintech industry professionals who founded Paygate Co., Ltd., a company specialized in facilitating transactions among banks. Currently, it provides remittance services for Beijing bank in China and the Japanese internet-bank Rakuten.
Korea Fintech forum was established in 2014 by Soyeong Park by inviting Seung-gun Lee (the representative of VIVA REPUBLICA), Hwang-seung Ik (Korea NFC), and other Fintech representatives.
The chairwoman also sent a bitter message that financial organizations must change in order for financial industry to be able to prosper. This is because they had negative views on Fintech companies, while the Fintech companies eagerly wanted to be cooperative.
“Fintech industry will never grow unless financial institutions and Fintech companies work together. There should be dedicated Fintech help centers within financial service companies in order to create a communication channel for Fintech companies.”
“It is impossible to keep up with the rapidly changing technological innovations just by receiving Fintech companies’ proposals and replying with some feedback.”
She also insisted that in order for new technology to be applied at the right time, financial supervisory authorities have to lower the level of regulation. Requiring young Fintech startups to have an equity capital of over $33.3 million in order to be granted a PSP (Payment Service Provider) license makes it look like the government is only putting up a barrier.