Large securities firms with a solid business base nationwide and a significant number of customers online are increasingly collaborating with Toss Bank. The goal is to sell investment products to more than 10 million subscribers secured by Toss, but there are concerns that a winner-takes-all phenomenon could occur in the financial investment market.
In the last two years, Toss Bank has become a major channel for opening accounts with securities firms and subscribing to investment products. Since August 2022, Toss Bank has launched the 'Rolling Money' service, which connects users to securities firms that sell bonds and commercial paper. After the launch of the service, eight securities firms, including Korea Investment & Securities, Samsung Securities, Mirae Asset Securities, and MERITZ Securities, sold a total of 700 investment products worth 12 trillion won (as of the end of November 2024) through Toss Bank. It is estimated that bonds account for 8 trillion won, while commercial paper accounts for 4 trillion won.
Securities firms actively utilize the Toss Bank platform because of the large number of users secured by Toss. Additionally, compared to other sales channels such as commercial banks, Toss's expenses are at a low level.
The advertising expenses that Toss Bank receives from securities firms are for the ads. Since users wishing to invest in products introduced by Toss Bank must open an account with that securities firm, Toss is considered to play an advertising role as a platform.
A representative from a large securities firm that sells investment products through Toss Bank said, 'The costs of the Toss platform are low, but the sales performance is much better,' noting that 'attracting young users who traditional outlets cannot reach is also a significant advantage of the Toss platform.'
Toss Bank is also obtaining double benefits from collaborating with securities firms. Not only can it earn advertising revenue from securities firms, but it can also offer a variety of investment products to customers visiting the app. Toss Bank, an internet-only bank, has quickly gained many customers through simple remittance services, but it has not yet secured the capacity to launch its investment products. Instead, Toss has attracted more customers by mediating investment products from securities firms.
The issue is that if Toss's influence expands, securities firms risk becoming dependent on this massive platform. It implies that a larger platform may not only act as a broker for selling investment products but could also prioritize selling its products and raise its expenses, which could have adverse effects on the investment market. Like Kakao Mobility, which faced allegations of directing calls to affiliated taxis, or the case of Baedal Minjok, which raised expenses, a platform that has grown in size may suddenly become the 'dominant' party to collaborating partners.
There are growing concerns in the industry that Toss, which has attracted many users and grown rapidly, will soon engage in a winner-takes-all approach. A representative from a securities firm stated, 'Currently, we charge low expenses and connect securities firms, but as our dominance increases, expenses will eventually rise,' adding, 'If securities firms rely on external platforms to sell investment products, this structure could ultimately hold back the securities firms.'
Recognizing the importance of platforms, securities firms are starting to develop their own platforms. Samsung Securities and other affiliated companies are expanding investments to improve the services of their integrated app 'Monimo.' The individual who spearheaded the development of Monimo is Park Jong-moon, president of Samsung Securities. Eom Joo-seong, president of Kiwoom Securities, emphasized the role of financial platforms during his New Year’s address this year. However, the platform initiatives of individual financial companies have yet to yield significant results.