South Korea launches digital open banking service

Users may access all local bank accounts through their own mobile banking apps.

South Korea’s Financial Services Commission (FSC) has launched an open banking service that allows customers to check their local bank accounts using any digital banking application.

Bank customers may use any mobile application of their choosing to access their bank accounts at any local bank. They may also withdraw or transfer their savings from any bank account. For instance, someone could use the application of one local bank to access an account at a different bank and send money to or from any other account.

Ten local lenders are taking part in the preliminary service, with another eight banks including internet-only banks, are expected to join the new banking system soon, FSC said.

FSC expects the open access to significantly lower transaction costs to only 10% of the current costs.

FSC added that it may consider further expanding the service to include smaller retail lenders from next year.

The open banking system will be fully launched in 18 December.