FSC has designated nine additional financial solutions as innovative financial services to be included in its regulatory sandbox program. Since the launch of the regulatory sandbox in April 2019, FSC has made a total of 77 such designations. FSC also established a supervision and inspection framework for innovative financial service operators, in an effort to provide support for successful testing, protect consumers, and ensure financial stability. The supervision and inspection framework is designed to encourage innovative financial service operators to take a more self-regulatory approach during the entire process of designation to launch and commercialization. On December 04, 2019, FSC also announced measures to promote fintech scale-ups and these measures include 24 key tasks in 8 different policy areas.
The key measures are related to the following:
- Improving the current regulatory sandbox system
- Performing regulatory reforms to facilitate fintech development
- Lowering entry barriers to financial industry
- Establishing regulatory foundations for digital era
- Developing new growth engines for financial innovation
- Promoting investment in fintech & fostering a private sector-driven venture capital ecosystem
- Assisting fintech firms with overseas business opportunities
- Expanding public sector support for fintech firms
FSC also notified that a demand survey is being conducted for 4 weeks (from December 10, 2019 to January 07, 2020) for the operation of regulatory sandbox program in 2020. FSC plans to hold an information session on January 10, 2020 to provide relevant information to businesses and listen to their opinions.
Additionally, FSC co-hosted a launch event for open banking service with the Korea Financial Telecommunications & Clearings Institute on December 18. Open banking service was pilot launched in Korea on October 30 with participation by 10 banks. Open banking will be available for a total of 16 banks and 31 fintech businesses, as more and more fintech firms are expected to join in the future. To continue to promote innovative financial solutions through open banking, FSC Chairman Eun Sung-soo said that the government will establish legal foundations through revision of the Electronic Financial Transactions Act while expanding the scope and function of open banking service.
- Press Release on Designation of Financial Solutions (PDF)
- Press Release on Scale-Ups (PDF)
- Press Release on Open Banking Service (PDF)
Keywords: Asia Pacific, Korea, Banking, Innovative Financial Services, Regulatory Sandbox, Fintech, Fintech Scale-Ups, Open Banking, FSC
Previous ArticleAPRA Releases Consultation on Superannuation Data Transformation
Next ArticleISDA Outlines Work Priorities for 2020
HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.
FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).
HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).
HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.
PRA published the final policy statement PS22/20, which contains the updated supervisory statement SS12/13 on counterparty credit risk.
FSB published an update on its work to address market fragmentation. FSB is working in this area in collaboration with the other standard-setting bodies.
EBA proposed revisions to the guidelines on major incident reporting under the second Payment Service Directive (PSD2).
EBA published the final draft regulatory technical standards specifying the methodology for prudential treatment of software assets by banks.
FSB published a report presenting the roadmap to enhance cross-border payments by providing a high-level plan that sets ambitious but achievable goals and milestones in the five focus areas.
In a recent communication, EIOPA urged the insurance sector to complete its preparations for the end of the Brexit transition period on December 31, 2020.