More rules to be eased for fintech

FSC Chairman Yim Jong-yong, second from left, listens to employees of the Fintech Center in Pangyo on Thursday. [FINANCIAL SERVICES COMMISSION]

The key words in the emerging fintech industry will be robo advisor, big data and global expansion this year, said Yim Jong-yong, chairman of the Financial Services Commission, as he pledged to ease more regulations that constrain growth in the industry.

At a ceremony held to mark the first anniversary of the launch of the Fintech Center in Pangyo, Seongnam, on Thursday, the FSC chairman applauded achievements of the institution for the past year and proposed future goals.

“Successful establishment of fintech start-ups are on a constant growth owing to the center’s support,” Yim said. “And there have been many changes made to the financial sector for such a short span of time, including simple payment services, crowd funding and the online insurance market.”

The center offered advice to as many as 320 fintech firms over the past year. In a survey last year, about 66 percent of the companies said they are satisfied with the center’s services.

The FSC will improve regulations related to the online investment advisory business to boost the use of robo advisors, making the service a useful tool for expanding wealth, the chairman said.

Big data-related regulations will also be revised, allowing financial companies to tap into a body of information to develop new financial services for a wider range of consumers.

The commission will seek a legal amendment by August that will allow financial institutions and fintech companies to utilize the personal information of consumers, which is encrypted to conceal individuals’ identities.

“We will also help local fintech firms go abroad,” Yim said. “The FSC will hold Demo Day events in fintech-hub countries such as Southeast Asian countries, Britain, the United States and China this year.”

Demo Day offers fintech start-ups the chance to demonstrate their technologies and services for officials of major financial companies and give them chances to attract investors. The seventh event was held last week.

“The FSC will spare no effort and support in raising Korean fintech companies’ overseas competitiveness,” he said.

The FSC chairman is planning to attend an overseas Demo Day around June, according to an FSC official.

To support more potential fintech entrepreneurs, the center will establish a Web portal that is tailored to search fintech-related information, including statistics. It will also start supporting mergers and acquisitions of firms as part of effort to help expand the size of the industry.

BY SONG SU-HYUN [song.suhyun@joongang.co.kr]