Hyperconnected society equals new finance ecosystem
Welfare benefits and tax payment made simpler and more transparent using fintech and blockchain in smart city infrastructure—this is the future of finance envisioned by Financial Services Commission (FSC) Chairman Eun Sung-soo. “Transformation in finance will become the core driver in accelerating local economic growth,” he said. IoT and AI boost local economies At a policy symposium held at the National Assembly Library on Jan. 10, FSC Chairman Eun sung-soo remarked that “despite the high level of interest in smart cities, there’s been a lack of serious discussion on the importance of finance. The core essence of smart cities is hyperconnectivity—which will disrupt the form and role of financial services in the local community.” Eun also stressed the importance of data in developing a smart city. “Through precise data analysis, we can address which region needs capital and where liquidity is flowing,” he added. “It allows for smooth financing and offering funds to small local merchants.” Reforms to support data usage He also expressed support for the so-called “Three data” laws, which passed in the National Assembly. On Jan. 9, the three laws, regarding privacy, credit information and telecommunication networks, passed in the National Assembly. The three laws are intended to make data more useful to companies “The credit information law by lawmaker Kim Byung-wook passed in the National Assembly,” said Eun. “The government will do its best so that a data-based finance revolution can lead to smart cities and the growth of local economies.” He added that there will be reforms in policy and regulations to lower the barrier for fintech companies that will ensure institutions safely store data and vitalize the creation of new data-based start-ups. Another plan is to come up with measures that will increase the data usage rate in the finance sector. “We want to disclose high-quality data accumulated in the finance segment to the private sector and devise plans for data exchange,” added Eun. “Most of all, we’ll make sure that private information is protected so that data can be used safely.” The chairman anticipated a “big data revolution” from the second half of the year as well as a new finance ecosystem driven by MyData.