Viva Republica’s bank has received approval from financial authorities for the banking of Internet-only banks. As a result, Toss Bank won the title of the third Internet bank in Korea, which was launched in about four years after Kakao Bank, the second Internet bank.
The Financial Services Commission held a regular meeting on the afternoon of the 9th to vote on the banking authorization for Toss Bank. “Toss Bank, which applied for approval in February, has since undergone a screening process, including an on-site investigation by the Financial Supervisory Service,” a Financial Services Commission official told Media SR. “Through close screening, we have judged that it has met all requirements for the approval of Internet banks.”.
The Internet banking challenge 비대면폰테크 dates back to 2019. Toss Bank, which challenged the preliminary approval in May 2019, experienced a bitter defeat in its first challenge. Toss Bank, which turned over a new leaf, re-challenged the preliminary approval review in October of the same year and finally received preliminary approval in December. After a long screening process, he/she acquired his/her own license in about a year and a half after obtaining preliminary approval.
First, it is implemented within the existing ‘Toss’ app, not a separate app. If banking services are installed within the existing Toss brand, which has more than 20 million customers, synergies can be expected to some extent.
“Many financial customers are already using various financial services through the Toss app,” Toss Bank said. “If you use the Toss app as it is, it will provide a more convenient financial environment to customers, and the company will be able to expect effects such as initial cost savings.”.
Meanwhile, the company unveiled some of its future business strategies, including a strategy to strengthen the share of mid-interest loans, through an online press conference held after the announcement of the acquisition of the main license of the Internet bank.
“So far, the history of credit loans and credit cards has been reflected in the credit evaluation process required for loan evaluation,” said Hong Min-taek, CEO of Toss Bank, who participated in the meeting. “Since we have actively collected non-financial data through Toss, we will increase medium-interest loans based on Toss Bank’s credit rating model that analyzes it.”.
In particular, Toss Bank believes that it could provide loan opportunities to social beginners with significantly less history of using loan products and credit cards by actively utilizing “non-financial data”.
“For example, social beginners or self-employed people who lack financial history will be able to provide financial products by reflecting the history of mobile phone number changes and the initial credit card opening date as evaluation factors,” a bank official told Media SR.