Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Banksalad outruns Toss in MyData business
Rainist's office on Yeouido, Seoul / Courtesy of Rainist
By Park Jae-hyuk
By Park Jae-hyuk
Rainist, the operator of personal finance managing app Banksalad, is threatening the dominance of Viva Republica, operator of the mobile money transfer payment app Toss, in the nation's fintech market, after winning preliminary approval for a MyData license first.
The two fintech firms were among the 29 financial services companies that had applied for the license which enables them to receive their customers' credit information from conventional financial firms, so that customers can access all their financial information in one place.
The Financial Services Commission (FSC) postponed giving a preliminary approval to Viva Republica, Tuesday, asking the company to submit documents necessary for the regulator to screen the eligibility of its major shareholders. If the fintech firm fails to get approval for the license, it will no longer be able to provide most of its current services from August next year.
KakaoPay was also among the eight companies that failed to get preliminary approval this week because the mobile payment service provider had failed to prepare documents on Alipay Singapore Holdings, which has a 43.9 percent stake in KakaoPay, in time for the deadline.
The financial regulator's decision surprised industry officials, who expected Viva Republica and KakaoPay would get preliminary approvals without difficulty.
“The regulator asked for too many documents from fintech firms so they had difficulties submitting those documents on time,” an industry source said on condition of anonymity.
In contrast, Rainist was listed among the 21 companies that received preliminary approval. According to the FSC, eight fintech firms got preliminary approval ― Rainist, Naver Financial, Bomapp, Finda, Teamwink, Korea Financial Solutions, Korea Credit Data and NHN Payco.
Last month, the company entered the mobile money transfer service market, which has been under the oligopoly of big tech firms such as Naver, Kakao and Viva Republica. Market observers expect Rainist will see intensifying competition with its rivals as it pushes to make the Banksalad app the leading mobile finance platform.
“We are planning to transform the Banksalad app into a life management platform from an ordinary asset management app,” a Rainist spokeswoman said, although she declined to comment on the company's specific blueprint for the MyData business.
A Viva Republica spokesman said the company will submit the required documents to the financial authorities as soon as possible to secure preliminary approval in mid-January.
The FSC will give final approval for MyData licenses in late January. If Viva Republica receives preliminary approval by mid-January, final approval will likely be processed by late January.