By Kim Jae-won
Staff Reporter

Local banks are working together to develop a standard system for smart phone-based mobile banking services prior to the upcoming debut here of Apple's iPhone, which continues to lead the global smart phone market.

According to industry sources, the Mobile Financial Council (MFC) plans to introduce a standard system for mobile banking services for smart phones late this month. The MFC is a joint council formed by 17 banks and other financial services providers, and the Korea Financial Telecommunications and Clearings Institute (KFTC).

``We are in the middle of discussions to make a joint system for smart phone-based mobile banking services,'' said Yoo Han-sang, manager of the KFTC, who is also in charge of the MFC.

An official of Woori Bank, which is one of the members of the MFC, said that the system will come into effect in the not so distant future. ``It will be good for everyone to have a standardized system. We can reduce costs and customers can use it easily,'' said Kim Ki-rin, deputy manager of public relations at Woori Bank.

The banks are working together since smart phone-based mobile banking requires a high level of security that is too costly to develop independently. Experts say that joint development will save about 30 billion won.

A smart phone is a mobile phone offering advanced capabilities, often with PC-like functionality. It provides e-mail, Internet and e-book reader capabilities.

The MFC will submit a plan to develop the joint system to the Presidential Committee on National Information Strategy to make it a national standard. Once they get permission, they will begin operating the new system. They may provide services as early as next year if everything goes well.

Smart phones accounted for 11.4 percent of the global mobile banking market in 2008, sharply up from 1.5 percent in 2003. The portion is expected to further rise to 21 percent next year. In Korea, demand for smart phones is likely to go up once KT, the local mobile-phone operator partnering with Apple, starts selling the iPhone handsets on Saturday.

Meanwhile, more than 10 million people are using mobile banking services in the nation.

Mobile banking demand has increased drastically as more than 10 million people used the services as of the end of September compared to 5.7 million people in March of 2008.

shosta@koreatimes.co.kr