No. 152 / Jun 7, 2021
Fintech has become a popular service in the aftermath of COVID-19. It has done so by providing insurance, banking, and financial services, which have historically been difficult for people to access. Fintech is a service that combines finance and technology. It is based on advanced information technologies such as mobile, Social Network Services (SNS), and big data.
Since financial transactions are possible through bank applications, offline banks do not have to worry about possible infections. Online banks, finance through fintech technology, and fintech applications have increased people’s satisfaction because they are convenient and easy to use.
Thus, it is unsurprising that fintech companies have already permeated our lives. Indeed, the Near Field Communication (NFC) makes it easy to pay for goods and services with smartphones, both online and offline, through applications such as Samsung Pay, Alipay, etc. Moreover, applications such as Toss enable one to transfer of money using just the recipient’s phone number, and not their bank account information. In addition, business can be handled at any all hours through an internet-specialized bank. Funding and bank-related affairs can also be managed anytime and anywhere using a mobile bank that operates without offline branches. Due to COVID-19, access certification is required every time one travels, and several companies, such as Naver, Kakao, and PASS, use mobile security technology to introduce a Quick Response (QR) code-based entry log service. In addition, Peer-to-Peer (P2P) services were created to facilitate interpersonal funding and lending on online platforms and without the participation of banks.
Customers in financial markets have been demanding an easy, simple, and more familiar financial experience after COVID-19. Fortunately, various companies offer fintech services. The first is Kakao. Kakao Bank has received consistently favorable reviews for focusing on mobile services that do not require public certificates and prioritizing convenient use of services through Kakao Talk’s high share. Kakao has recently expanded its business beyond simple transactions to loans, securities, and insurance. Second, Toss is a service that focuses on account inquiries and transfer functions. As such, Toss began to address the inconvenience of existing banking services. It has implemented a service that withdraws money from customers’ accounts and transfers funds using firm banking without going through financial institutions. The company also recently opened Toss Securities, a mobile security firm. Third, Naver provided credit loan products to smart store operators. Through this, smart store operators were able to obtain loans if sales of 1 million won per month were maintained for three months without offline stores. Moreover, the company plans to push for the launch of post-payment services to expand Naver Pay’s services as a comprehensive asset management entity. Finally, Aton is a fintech security company that provides security solutions to banks, security firms, and telecommunications companies. Simple authentication is possible through a Personal Identification Number (PIN) without a security card or official certificate. Through Aton’s PASS application, a mobile driver’s license can be made using the co-authored authentication application of three telecommunications companies.
Because fintech is a technology that processes financial information using computers and mobile phones, security is important. There is a risk of hacking and the leakage of personal information, both of which can lead to dire financial outcomes. For this reason, it is necessary to establish a system to determine the damages caused by electronic finance.
By Lee Yun-zee, AG Reporter
lyz5511@ajou.ac.kr