Fintech's First Priority

Chairman Shin Jae-yoon of the Financial Services Commission delivers an introductory speech at a meeting for Financial IT Security held in the main office of Lotte Card, Seoul on Feb. 2.
Chairman Shin Jae-yoon of the Financial Services Commission delivers an introductory speech at a meeting for Financial IT Security held in the main office of Lotte Card, Seoul on Feb. 2.

 

Chairman Shin Jae-yoon of the Financial Services Commission stressed that it is necessary to strengthen security in line with the convergence of IT with the financial industry. His remarks were made during a press event held in the main office of Lotte Card, Seoul on Feb. 2.

Chairman Shin said, “The government will redesign regulations on the e-banking industry in order to grow companies involved in financial technology [fintech] and create an ecosystem for the industry.” He added, “Security is an essential prerequisite to this process.”

He pointed out, “Any service where information security is not guaranteed will become a house of cards in the end.”

Shin remarked, “It is undeniable that easier and simpler financial transactions inevitably increase the possibility of financial incidents.” He added, “It is necessary to come up with various complementary measures so that customers can be provided with convenient services without inflicting damage to them through illegal transactions.”

The chairman also said, “It’s a shame that banks were unable to prevent criminals from withdrawing cash using phone banking, unlike credit card companies, which had already built and operated a fraud detection system.” He added, “Banks and securities companies should build a system as soon as possible, since account transfers are done in real time.”

Representatives of the Financial Supervisory Service, NH Bank, KDB Daewoo Securities, Lotte Card, and SK Planet attended the event, and discussed measures to make the financial and IT sectors more secure in line with the revitalization of fintech. 

Participants proposed that the financial industry share information on abnormal financial transactions in order to rapidly respond to financial fraud. They also suggested that credit card companies pass on expertise in operating the fraud detection system to other industries, and the financial sector run a joint consultation body on the system. 

Attendees also stressed that identity verification should be strengthened at websites that trade money, by charging points or selling gift certificates. They said that a system to share information on financial incidents between financial companies is needed as well.

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