South Korea’s financial regulator has revealed plans to create an open interbank payment network. The system is expected to help the country foster more successful FinTech firms and rejuvenate the country’s economy.
Currently, only banks are granted access to the financial network to make money payments and transfers. Each bank is allowed to handle only its own banking services, and FinTech firms are hindered in their efforts by costs, as transaction fees for them are typically between USD 0.30 and USD 0.45 per transaction. The creation of the new network is expected to be accompanied by amendments to relevant laws that will allow FinTech firms to directly access the payment network and help lower transaction fees.
There is no specific timeline for the network’s launch, but South Korea’s regulator plans to bring in the network online in phases in the near future.