2024-04-13 03:32:00
Woori Bank and others are also considering entering the budget phone business.
Industry: “Expansion into fields other than finance will likely become more active”
KB Kookmin Bank’s mobile communication service (affordable phone) ‘KB Live Mobile’ was recognized as an official subsidiary business of the bank on the 12th. This is the first case in which non-financial business was recognized as ancillary business in the financial sector. This is expected to be an opportunity for the banking sector to more actively jump into different industries.
The Financial Services Commission received Kookmin Bank’s ancillary business report on the 5th of this month and announced the designation of the budget phone service as ancillary business to the bank.
KB Live Mobile was designated as the first innovative financial service by the Financial Services Commission in April 2019, and is evaluated as having succeeded in attracting customers by offering a reasonable rate plan compared to the three telecommunication companies (SK Telecom, KT, and LG U+). According to Kookmin Bank, the number of KB Live Mobile subscribers so far is around 420,000. In addition, benefits such as △the first 5G (5G) and watch rate plan among budget phone operators △customer center 24 hours a day, 365 days a year △membership benefits and friend group discounts were introduced.
As Kookmin Bank’s budget phone service has been officially designated as an ancillary business of the bank, the possibility of other banks entering the budget phone business has increased. Woori Bank formed a task force (TF) for the budget phone business at the end of last year, and NH Nonghyup and Shinhan Bank are also reviewing the feasibility of entering the budget phone business.
However, in the process of carrying out secondary tasks, the Financial Services Commission ordered △prevention of damage to the soundness of banks, △consumer protection, △prevention of excessive competition, mutual business consultation between labor and management, and △preparation of personal information protection measures. To this end, the banking sector must report to the Financial Services Commission before commencing its operations and inform the financial authorities of its future operation status every year.
It is also notable in that it is the first case in which the financial sector has recognized non-financial business as an official side business. The industry predicts that attempts to enter fields other than finance, especially banking and insurance, will become more active. An official in the financial sector said, “There may be a noticeable movement toward innovative financial services, especially in industries that desperately need business diversification.”
An official from a commercial bank said, “From the banking sector’s point of view, there is an advantage in being able to secure new customers and non-financial data through the budget phone business. In particular, it is true that it has a great effect in attracting customers because it is necessary to open a bank account during the process of signing up for an budget phone.” explained.
Reporter Kang Woo-seok [email protected]
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2024-04-13 03:32:00