INTERVIEW Risk taking, fewer rules key to digital economy

Andy Nam, chief information officer of SC Bank Korea, discusses the future of big data in an interview with The Korea Times. / Courtesy of SC Bank

Freer data can boost AI-backed customized services

By Park Hyong-ki

The country must pursue regulatory reforms that will enable local financial companies to take risks and thrive competitively by using the latest emerging technologies, said Andy Nam, chief information officer (CIO) of Standard Chartered (SC) Bank Korea.

It will also need a “strong, aggressive leader” who can overhaul its social perceptions toward entrepreneurship, which is normally viewed negatively here, instead of as daring, exciting and hopeful.

“I believe those are the main reasons behind the slow progress in developing a digital economy here,” Nam said in a recent interview at the bank's headquarters in Seoul.

The country has strong, fast internet infrastructure.

Also, people recognize the importance of exploring the technological potential of blockchain, big data, virtual reality and artificial intelligence.

But as the World Economic Forum (WEF) reported, the spirit of “do or die” and “nothing to lose” ― the key to innovation ― has been overshadowed by “everything to lose” if they take risks and fail.

Drawing from his personal experience and knowledge in information technology while working for various consulting firms before joining SC Bank, he said Korea's digital economic competitiveness is “four years” behind other top-notch Asian economies such as Japan and China.

“Four years is very long in the digital world. We're at a stage where we can't even catch up with those countries,” he said.

Before joining SC Bank as the CIO, he worked as an IT consultant for global firms such as Accenture and Boston Consulting Group, he noted. Nam specializes in data architecture modeling.

For instance, Korea is making efforts to relax rules concerning the use of cloud computing technology.

However, there are still limits to using and managing data under the cloud computing system for global companies and their subsidiaries, he noted.

Basically, data created and generated here cannot leave the country.

This defeats the purpose of cloud computing, which is to help companies anywhere in the world use and manage data wherever cloud computing servers are for cost and operational efficiency.

“I definitely understand the concern over possible personal security risks. But it should allow a freer flow of data and let the private sector take full responsibility and manage the risks,” Nam said.

The last time he checked, he said there were only three countries that apply this strict data rule ― Korea, China and Indonesia.

China is a big country with huge amounts of data. Companies there can see the benefits of managing their data within its borders.

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But Korea is a small economy, and data created and generated here needs to join the outside world for better analysis through open innovation, which would certainly help exporters, he suggested.

Without freer flow of data and management, the country cannot adopt artificial intelligence, no matter how great its machine-learning software.

Also, without this step, local companies cannot go forward in providing services tailored to their customers both here and abroad.

“The ultimate goal for any company is to provide a personalized service through big data and artificial intelligence,” Nam said.

“We now live in an era where a technology will make or break an economy. Just take a look at the top Fortune 500 companies. They are all tech companies.”