Digital Banks : Lessons from Korea

Digital banks have been on the rise as digital technologies transform financial services around the world. Under the Korean government’s new policy framework for digital banks, K Bank and Kakao Bank successfully launched in 2017 with convenient and...

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Bibliographic Details
Main Author:	Choi, Youjin
Format:	Brief
Language:	English
Published:	World Bank, Seoul 2020
Subjects:	DIGITAL BANKING MOBILE MONEY ACCESS TO FINANCE PERSONAL INFORMATION PROTECTION E-FINANCE FINANCIAL SERVICES FINANCIAL TECHNOLOGY ONLINE-ONLY BANK FINANCIAL REGULATION
Online Access:	http://documents.worldbank.org/curated/en/579871603861444098/Digital-Banks-Lessons-from-Korea http://hdl.handle.net/10986/34701

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recordtype	oai_dc
spelling	okr-10986-347012021-05-25T10:54:41Z Digital Banks : Lessons from Korea Choi, Youjin DIGITAL BANKING MOBILE MONEY ACCESS TO FINANCE PERSONAL INFORMATION PROTECTION E-FINANCE FINANCIAL SERVICES FINANCIAL TECHNOLOGY ONLINE-ONLY BANK FINANCIAL REGULATION Digital banks have been on the rise as digital technologies transform financial services around the world. Under the Korean government’s new policy framework for digital banks, K Bank and Kakao Bank successfully launched in 2017 with convenient and innovative products and services and brought a substantial impact on Korea’s banking sector. With their businesses growing at a fast pace, these banks sought to increase their capital accordingly, but encountered unforeseen regulatory issues on bank ownership which required new legislation and regulatory efforts to get resolved. After the first three years of operation, as of July 2020, the two banks show contrasting track records, mainly explained by differing challenges and successes in capital increase and marketing. With digital transformation accelerating and competition heightening, digital banks will need to become even more strategic and innovative to continue to be successful. This knowledge note was written to take stock of Korea’s experience with digital banks and share lessons that may be useful for financial policymakers and market players in banking and fintech. 2020-10-30T14:59:03Z 2020-10-30T14:59:03Z 2020-10 Brief http://documents.worldbank.org/curated/en/579871603861444098/Digital-Banks-Lessons-from-Korea http://hdl.handle.net/10986/34701 English Korea Office IInnovation and Technology Note;No. 2 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Seoul Publications & Research Publications & Research :: Brief East Asia and Pacific Korea, Republic of
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	DIGITAL BANKING MOBILE MONEY ACCESS TO FINANCE PERSONAL INFORMATION PROTECTION E-FINANCE FINANCIAL SERVICES FINANCIAL TECHNOLOGY ONLINE-ONLY BANK FINANCIAL REGULATION
spellingShingle	DIGITAL BANKING MOBILE MONEY ACCESS TO FINANCE PERSONAL INFORMATION PROTECTION E-FINANCE FINANCIAL SERVICES FINANCIAL TECHNOLOGY ONLINE-ONLY BANK FINANCIAL REGULATION Choi, Youjin Digital Banks : Lessons from Korea
geographic_facet	East Asia and Pacific Korea, Republic of
relation	Korea Office IInnovation and Technology Note;No. 2
description	Digital banks have been on the rise as digital technologies transform financial services around the world. Under the Korean government’s new policy framework for digital banks, K Bank and Kakao Bank successfully launched in 2017 with convenient and innovative products and services and brought a substantial impact on Korea’s banking sector. With their businesses growing at a fast pace, these banks sought to increase their capital accordingly, but encountered unforeseen regulatory issues on bank ownership which required new legislation and regulatory efforts to get resolved. After the first three years of operation, as of July 2020, the two banks show contrasting track records, mainly explained by differing challenges and successes in capital increase and marketing. With digital transformation accelerating and competition heightening, digital banks will need to become even more strategic and innovative to continue to be successful. This knowledge note was written to take stock of Korea’s experience with digital banks and share lessons that may be useful for financial policymakers and market players in banking and fintech.
format	Brief
author	Choi, Youjin
author_facet	Choi, Youjin
author_sort	Choi, Youjin
title	Digital Banks : Lessons from Korea
title_short	Digital Banks : Lessons from Korea
title_full	Digital Banks : Lessons from Korea
title_fullStr	Digital Banks : Lessons from Korea
title_full_unstemmed	Digital Banks : Lessons from Korea
title_sort	digital banks : lessons from korea
publisher	World Bank, Seoul
publishDate	2020
url	http://documents.worldbank.org/curated/en/579871603861444098/Digital-Banks-Lessons-from-Korea http://hdl.handle.net/10986/34701
_version_	1764481466876559360

Digital Banks : Lessons from Korea

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