By Park Hyong-ki
Staff Reporter
Most young financial consumers are in favor of the idea of Internet banks that is being promoted by the Financial Services Commission (FSC). They say using such banks for transactions and other services will help them save time in their hectic day-to-day schedule.
For instance, Park Min-ki, a 30-year-old office worker in Seoul, does not have the luxury of time to visit offline bank branches to take care of his personal financial matters. He wakes up at six in the morning, is at his desk by eight and punches out late at night.
``That's why I have always used Internet banking to do transactions. It's less time-consuming, and more comfortable. I'm all for Internet banks if their services go far beyond what we can do offline,'' said Park.
Although Internet banks seem to be attractive, others point out security concerns. Kevin Kwon, a 31-year-old office worker in Seoul, said. ``I'm willing to use the services provided by Internet banks if they fully guarantee the safety of their electronic security system and prevent leakage of customers' personal data.''
Kwon, who also uses Internet banking provided by offline commercial banks, added that if special online banks offer faster services or cheaper fees on transactions, he won't have second thoughts about using them. ``The only reason I'll go to offline branches will be if I wanted to consult specifically about financial products. But other than bank tellers, I rarely see consultants ready to give a hand to customers at branches whenever I go,'' he noted.
However, the older generation such as Chung Yong-sun, a 62-year-old retiree, would rather take care of financial matters offline. ``It's not that I don't like using the Internet. I just feel a lot more comfortable if I can directly see someone taking care of my business even if it takes some time,'' Chung said.
Such remarks by consumers come as the FSC is gearing up to devise rules, governing the development of Internet banks as part of efforts to spur competition in the banking sector.
As an initial step, the regulator will allow online banks to market not only equity fund products but also insurance policies. Furthermore, operations of automated teller machines will be permitted, and their offline branches can be set up, provided that they do not offer cash settlement services.
Most importantly, it will strictly maintain and apply the Real Name Financial Transactions Law to Internet banks, meaning that staff of such banks may have to visit customers at home and check their personal identity for authenticity prior to allowing them to open accounts.
``There is the need to maintain the law as a revision will raise too much confusion and inconsistency,'' said an FSC official.