In the future, it will be possible to open bank savings accounts, time deposits, and apply for loans at branches of other banks, post offices, and mutual finance and savings banks.
On the 27th, the Financial Services Commission announced the 'introduction of banking agency services and activation of banking business delegation plans' that allow financial consumers to handle banking transactions in person at places other than their transaction bank branch. Lee Jin-soo, head of the banking division at the Financial Services Commission, noted in a background briefing that the purpose is to enhance financial accessibility by delegating face-to-face transaction demands to minimize inconvenience for financial consumers due to the decrease in physical branches.
The banking agency service is a system that allows third parties to perform bank-specific tasks such as savings accounts, loans, and foreign exchange transactions. Institutions that can provide banking agency services include banks and corporations where banks are the largest shareholders. Additionally, post offices, mutual finance, and savings banks with regional sales networks are also included.
Institutions assigned to the banking agency service will be responsible for basic face-to-face tasks such as consultations and acceptance of applications. In the case of loans, they will only receive applications and notify the financial consumers of the results approved and reviewed by the bank, followed by signing the contract. Tasks such as evaluating the credit and collateral of individual borrowers (those borrowing money), and determining interest rates and fees cannot be delegated.
The Financial Services Commission is pushing for amendments to the Banking Act this year to introduce the banking agency system. However, since it may take a long time to amend the law, the banking agency service will be prioritized and piloted as 'innovative financial services' starting in July. The pilot operation will focus on banks, mutual finance, and savings banks that handle deposits and loans, while allowing post offices to enter as well. As of the end of last year, post offices had over 2,500 branches nationwide.
The Financial Services Commission is also promoting the activation of joint automated teller machines (ATMs) in the banking sector and deposit/withdrawal services in convenience stores. Joint ATMs are currently limited to installation sites in regional traditional markets, but there are plans to expand this to public offices, community facilities, and large local supermarkets. Additionally, working partnerships will be expanded to allow bank customers to conduct transactions at mutual finance ATMs.