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A Study on the Development of the Korean Internet Banks

한국 인터넷은행의 발전 방안에 관한 연구

  • Ok, S.H. (Dept. of MIS, Dongguk University - Seoul Campus) ;
  • Hwang, K.T. (Dept. of MIS, Dongguk University - Seoul Campus)
  • 옥성환 (동국대학교 서울캠퍼스 경영대학 경영정보학과) ;
  • 황경태 (동국대학교 서울캠퍼스 경영대학 경영정보학과)
  • Received : 2017.10.31
  • Accepted : 2017.12.20
  • Published : 2017.12.28

Abstract

Korea came to see its first internet bank as 'K bank' obtained the digital-only banking license in December 2016. This paper suggests ways to foster internet banks of Korea in their early stage by analyzing the successful cases of overseas internet banks. The followings are the key success factors identified from those cases across Europe, Japan, China, and USA: Support from the related government authorities; Stable governance structure; Distinct business capabilities based on information & communications technology(ICT). These points lead to the following implications for Korean internet banks. Regulatory restrictions on owning and running internet banks should be lifted to facilitate innovation. Policies to support internet bank industry should be introduced as it is a vital part of the 4th industrial revolution. Finally, internet banks should strive to differentiate themselves by utilizing their ICT capabilities. Subjects of the further research hereafter should include the following: Analyzing the ongoing performance and developments of digital banks in Korea; Deriving success factors from the analysis; Assessing the influence and effects on financial market and economic environment.

Keywords

Internet Bank;FinTech;Development Directions;Regulation;Policy

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