Korean government to launch platform for fintech apps

The government of Korea is planning to launch a platform by the end of this month that will enable fintech companies in the country to develop apps for customers in a move to manage their finances in a hassle-free way.

According to a Korean media, the Financial Services Commission stated that 16 banks and 25 brokerage firms are participating in the joint open platform. The platform will include a standardized application programming interface (API) from the open platform and a test bed. The API is crucial in developing software and apps and allows access to the electronic systems by financial companies like viewing account balances. The API will reduce the time it takes for fintech firms to develop apps.

Fintech companies can perform tests on the open platform regarding the working conditions of the electronic financial networks. Korea Financial Telecommunications and Clearing Institute and Koscom Corporation will be managing the open platform.

“Once the open platform is completed, fintech companies will no longer have to sign contracts with different financial companies. It is now possible to develop a service that connects all financial companies, which will contribute to providing various financial services,” Yim Jong-Yong, Financial Services Commission Chairman said during a press briefing, Korea Joongang daily reported.

Many projects were delayed before as fintech companies had to first sign individual contracts with different financial companies. Even after making a fintech service for one financial company, the program wouldn’t be compatible with other financial companies. In June this year, Korean government decided to provide its full support to venture capital to fintech start-ups in a move that digital innovation will play a pivotal role in the fourth industrial revolution.