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
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.
EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).
BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.
FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.
EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.
FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.
EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.
The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.