Open banking reveals poor security of fintech firms
gettyimagesbankBy Park Jae-hyukThe official launch of the open banking service this month has revealed security risks prevail in the nation's fintech industry, as most startups have failed to win approval to operate the service due to their inability to protect users from data theft.Open banking refers to a new banking system under which a user can check all their accounts from different banks using a single mobile application.According to industry sources, Tuesday, 133 fintech firms have applied for licenses to operate open banking services, but only seven large fintech firms ― including Viva Republica, Finnq and KakaoPay ― and 24 open platform providers received approval.It was initially expected that the full-fledged operation of open banking will heat up competition between major lenders and fintech startups.Most small- and medium-sized enterprises (SMEs) that applied for open banking licenses, however, could not pass the security check-ups.According to the Korea Financial Telecommunications and Clearings Institute (KFTC), applicants for the open banking service must pass through
Dec 24, 2019By Park Jae-hyuk