Local financial companies are jumping into Personal to Personal loan markets mostly dominated by startups in an attempt to preempt the fintech market - a combination of finance and technology.
KB Financial Group recently launched “Fintech Hub Center” in a bid to jump into the P2P market in partnership with relevant startups. P2P, direct financial transaction via online platform, is newly emerging in some advanced nations including the U.S. and the U.K. It collects investment money from unspecified masses and lend money at lower interest rates than commercial banks.
As the first financial institution to jump into the P2P market among local commercial banks, KB reportedly plans to attract borrowers using its P2P loan platform and lend money at a low interest rate. They are now in discussion with relevant startups.
Market watchers said KB’s latest efforts are to preempt the fintech market and to gain online loan experiences to later jump into Internet banks, which create much buzz in South Korea but not are not yet actualized.
Other financial institutions such as Shinhan, Haha Financial and other IT companies are reportedly reviewing the P2P loan services based on mobile platforms.
In line with the growing industry, experts call for clearer guidelines and regulations from the government.
By Kim Yu-na
