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| The headquarters of Toss in Seoul / Korea Times file |
By Lee Kyung-min
The Financial Services Commission (FSC) said Thursday that it began the screening process of the applications from two consortia for a license to open a third internet-only bank, yesterday.
One is led by Toss, a mobile money transfer app owned by Viva Republica, and the other by Soso Smart Bank, backed by a coalition of 6.7 million small merchants nationwide.
The FSC is expected to disclose the outcome as early as Sunday.
The review process is carried out by an external evaluation committee whose members are chosen by the Financial Supervisory Service (FSS).
Seven members with expertise in finance, the law, consumer protection, fintech, accounting, IT security and risk management will conduct a review to determine whether the consortia's business proposals meet requirements.
Evaluation criteria will include innovation, stability, inclusiveness, financing plans, infrastructure, human resources and shareholder makeup.
Toss, seeking approval for the second time, has largely dissipated lingering concerns over financing, a key factor that frustrated its first bid in May.
At the time, Toss received low scores due to the abrupt exit of Shinhan Financial Group and Hyundai Marine & Fire Insurance, its two cash-rich partners.
This time, the void is filled by KEB Hana Bank and Standard Chartered (SC) Bank Korea. Hanwha Investment & Securities, the Korea Federation of SMEs and E-Land World each have a 10 percent stake in the consortium.
Market observers said that there is also a chance for Soso Smart Bank to win a license because it has strength in innovation and its efforts for inclusive finance.
This is based on its business plans to bolster lending to members of 1,600 small cooperative associations at mid- to low-interest rates, a niche market with a firm customer base long neglected by commercial banks.
The existing two market players are Kakao Bank, operated by mobile messaging service provider Kakao Corp., and K bank, operated by telecommunications firm KT.
"We are not able to disclose a detailed schedule regarding the announcement at this point, but we will make the decision public as soon as the meeting ends," an FSC official said.
