As soon as the Korean government mitigated regulations regarding Fintech, banks began preparing new concept of services such as biometric authentication. They are strengthening technically lacking parts by partnering with various tech startups.
Bank’s introduction of biometric authentication technology
- The vein authentication of Shinhan Bank uses infrared ray sensors that can read the patterns of vein shown on the palm of one’s hand. In order to get authentication, one only needs to place one’s hand on the sensor. With this system, one can transfer and withdraw money literally using the palm of his hand. Bank books or credit cards, or even remembering one’s password is no longer necessary.
- Hana Financial has recently signed an agreement with Korea Electronics and Telecommunications Research Institute (ETRI) to start its own biometric authentication systems. Fingerprints, as well as face, iris, and voice may be used for identification which is planned to be provided in January of next year.
- KB Financial Group has also demonstrated various biometric authentication technologies during the “2nd Fintech Demo Day” held in last August.
- Woori Bank has introduced its Cash Automatic Teller Machines(ATM) that interacts with ‘Samsung Pay’ and it is already in service now.
- IBK Industrial Bank is promoting its iris recognition system that was developed with a fintech company, ‘Irience’.
Cooperation with Startups
- Most banks lack expertise in technology needed in biometric authentication. They deal with this by partnering with tech startups.
- KB has formed an alliance with a fintech startup called Coinplug, in order to develop FX business model based on blockchain technology. Coinplug holds 12 blockchain related patents.
- Woori Bank made an ‘agreement of joint duties for cooperation with Fintech business’ with 5 fintech companies. The agreement is on joint duties for R&D, business model introduction, and is commercialization.
- Hana Bank is also speeding up on adoption of financial technology by forming business agreements with 4 fintech startups for developing business models.
- Shinhan Bank will be directing investments on fintech. Their plan is to invest a total amount of 20 million on promising fintech startups that are being fostered in ‘Shinhan Future’s lab’ in Fintech Center.