Kakao bank
KaKao Bank received South Korea's second Internet banking license. It opened on July 27, 2017.[1]
Authentication
It is dedicated exclusively to smartphone banking. [2]Passwords are not used when logging in. Finger recognition or pattern log-in is used; however, fingerprint recognition is optional, and because of differences in smartphone types, fingerprint recognition is not compulsory. It supports only the area of the Google standard and does not support the Swiff approach. Therefore, Samsung Electronics smartphones and Pantech's smartphones were unable to use fingerprint recognition before (Galaxy S5 and Galaxy Note 4).[3][4]
Shareholder company of Kakao bank
Financial sector
- Korea Investment Holdings Co.Ltd: High-ranking financial holding company.
- KB Kookmin Bank: Korea's main bank.
- KOREA POST: Public institutions that operate post office finance and delivery services.
- Seoul Guarantee Insurance Co.Ltd: Korea's largest guaranty insurance company.
Life financial services sector
- KAKAO: Leader of the Mobile Life Platform.
- e-bay: Korea's largest electronic commerce platform with G-market, Auction, etc.
- Netmarble: Korea's top gaming business operator.
- Yes 24: South Korea's representative Internet bookstore.
- TENCENT: A typical ICT company operating in China.
History
Preliminary license of banking
On November 29, 2015, 11 local banks, including Kakao, Korea Investment & Securities Co., and KB Kookmin (국민) Bank, applied for a preliminary banking license based on the introduction of a web-based bank using mobile and online banking. On November 29, 2015, the Financial Services Commission approved the preliminary banking license.[5]
Established Korea's kakao shares (kakao bank)
On January 22, 2016, promoters (initiators) of Korea Investment Bank, Kakao Bank, KB Kookmin Bank, SGI Seoul Guarantee Center, Netmable, eBay, and Tencent joined the consortium to establish Kakao Bank.[5]
Final authorization of banking
On April 5, 2017, the Financial Services Commission evaluated the adequacy of capital expenditures, appropriateness of financing plans, appropriateness of the project plan, and manpower, organization, and computing facilities for the project's adequacy. The Financial Services Commission then approved banking operations for Kakao Bank. It registered as the 22nd general member of the banking association.
Opening of the kakao bank
On July 27, 2017, Kakao Bank launched customer banking services via mobile phones, including deposit accounts, debit cards, and foreign remittance. Since the launch of Kakao Bank, the demand for loans has increased due to explosive popularity. As assets rose rapidly, they decided to speed up capital gains.
On August 11, 2017, Kakao Bank held a board meeting and decided to increase its paid-in capital by 500 billion won.[6]
Present situation of KaKao bank
On July 28, 2017, according to Kakao Bank, the number of new customers reached 470,000 on the second day of sales. The amount of deposits and installment savings of Kakao Bank totaled 135 billion won, 32 hours after sales began.[7]
On July 31, 2017, Kakao Bank surpassed one million accounts in just five days. The number of credit card applications surpassed 600,000, and 670,000 people applied for a check card. Applications were downloaded 1.78 million times. According to Kakao Bank, more than 20,000 people per hour entered the bank during the opening. Since then, there have been an average of 10,000 customers per hour.[8]
On August 11, 2017, South Korea's second Internet-only bank, Kakao Bank, announced that its board of directors had decided to raise 500 billion won (US$437 million) by issuing new shares to better provide services amid growing demand for loans. The bank said its board of directors held a meeting earlier that day and voted to issue 100 million new shares worth 5,000 won each. The bank said it made the decision preemptively to offer new services and products, adding that its move would further improve the lender's financial soundness. Kakao Bank launched in late July with paid-in capital of 300 billion won, attracted more than 2.28 million accounts, and extended loans worth 880.7 billion won.[9]
Kakao Bank said that as of 7 p.m. on Sunday, nearly two trillion won was entrusted to it, while roughly 1.4 trillion won was taken out in loans. It also received 2.16 million applications for the issuance of check cards. The amount of loans Kakao Bank executed over the past month is larger than the growth of household loans provided by Kookmin Bank from January to August that year. It also amounts to 54.8 percent of the growth of household loans issued by Shinhan Bank during the same period.[10]
On November 3, 2017, Kakao Bank recorded 4.45 million customers who opened accounts, marking its first 100 days. Kakao Bank surpassed four million customers on October 4. At the end of October, the amount of deposits and installment savings totaled 4.002 trillion won. Overseas remittances reached 34,000 transactions over the past three months. The amount of remittances abroad comprised 44 percent in US dollars, 20 percent in euros, 10 percent in Canadian dollars, and 7 percent in Australian dollars.[11]
Services
Deposit[12]
KakaoBank provides deposit services. KakaoBank separates the amount that people will not consume for a while from their deposit and withdrawal accounts to create a preliminary account book called a 'safe box'.[13]
Fees
By the end of 2017, all ATM withdrawal fees were exempted for KakaoBank users.[14]
Check card[15]
Kakao Bank issued only check cards with cash card functionality. People could choose one of five designs, including KakaoFriends characters, except for the dark gray pattern.[16]
Overseas remittance[17]
KakaoBank offers international remittance services. It was not possible to transfer money to China, Vietnam, Indonesia, Latin America, and Africa at that time.[18]
Loan
Kakao Bank also provides loans, divided into three types:[19] saving loans, negative account loans, and credit loans.[20]
Features of kakao bank
Advantage
- Remittance is convenient.[21] Money can be sent like a KakaoTalk message without repeatedly entering passwords.[22]
- As of November 2017, all ATMs were free of charge.[23]
- Official certificates were not required.[24]
- Only mobile apps were supported; PC environments were not supported. This caused problems for businesses.
- There was no open API functionality, and third-party apps were not supported.
- Even with one's own antivirus software, users had to install AhnLab antivirus software.
- Lack of account access revealed account information.
- There were no business-related products. This was a serious problem, considering that the bank's main source of income is corporate lending interest.
- Certificates were not compatible with other banks because they used proprietary certificates.
- No foreign exchange systems were available; currency could only be exchanged for won.
- Joining was difficult due to server instability. Many reviews reported server errors and identification errors, taking much longer than Kakao Bank's advertised average of 7 minutes to open an account.
- Problems were reported every Monday morning at 9:00 a.m. and 10 p.m., with only late-night incidents being reported.
Problems[29]
Internet-only bank Kakao Bank required ID card revalidation after financing, leading to transaction restrictions for some users.
Initially, Kakao Bank verified the authenticity of resident registration cards or driver's licenses through the Ministry of Public Administration and Security and the Road Traffic Corporation. Subsequently, it monitored identification cards for all customers and took measures.
If the application's photo-taking function was used to identify the submitted ID card, the transaction would be restricted, and revalidation was required. Kakao Bank explained that revalidation was necessary if light reflection prevented proper display of identification information or if the ID card was old and damaged.
"The revalidation process is a simple process of re-identifying the ID card at login," Kakao Bank stated. "However, if the ID card is excessively damaged, it is difficult to confirm the transaction."
However, revalidating ID cards after a considerable time after joining raised concerns about potential problems. Users requiring revalidation might have already received services like loans. From the user's perspective, a perfectly functional account might suddenly be restricted, and check cards might be stopped, causing inconvenience. Customers experiencing this complained that initial photos were unclear and that the issue would not have occurred if the account had not been opened.
Kakao Bank had a physical limit on handling speed due to the large number of customer inflows over a short period. Kakao Bank explained that, "Most subscribers who underwent re-certification easily re-authenticated, and there were few cases where transactions were restricted." However, for cancellations, Kakao Bank verified identity through video calls.
K Bank, another Internet bank, monitored transaction trends and checked for suspicious account abuse or money laundering but did not have a process for bulk ID card revalidation like Kakao Bank. Accordingly, the financial sector pointed out the need to review the identity verification status of internet-only banks and correct or unify procedures.
Footnote
- ↑ "카카오뱅크 첫날 '돌풍'…기존 금융권 흔들 태풍 될까".
- ↑ ""스마트폰으로 OK"…카카오뱅크가 온다".
- ↑ "카카오뱅크-케이뱅크, 인증방식 왜 다를까".
- ↑ "지문으로 금융서비스 논스톱 이용…저축은행도 '간편인증 시대'".
- ↑ 5.0 5.1 kakao bank, current situation
- ↑ "카카오뱅크 고객 폭주…접속자 몰려 가입에만 40분". 뉴스1 (in 한국어). 2017-07-27. Retrieved 2017-12-18.
- ↑ "[일문일답] 이용우·윤호영 카카오뱅크 대표 '8등급도 대출 가능'". it.chosun.com (in 한국어). Retrieved 2017-12-18.
- ↑ "카카오뱅크, 대출까지 해주고 신분증 재확인 한다며 거래제한 '논란'". sports.chosun.com. Retrieved 2017-12-18.
- ↑ "Kakao Bank decides to raise 500 bln won through rights offering".
- ↑ "Kakao Bank Attracts Over 3 Million Customers in Month".
- ↑ EBN, 종합 ‘ “출범 100일 카카오 뱅크, 흥행 돌풍 넘어 은행권 성공적 안착”
- ↑ "모바일에서 손쉽게 개설하는 카카오뱅크 입출금통장!". 카카오뱅크 블로그. 2017-07-27. Retrieved 2017-11-25.
- ↑ "금리 더 오를 때까지 잠시 맡기자 … '파킹통장' 인기". 중앙일보 (in 한국어). 2017-10-31. Retrieved 2017-12-12.
- ↑ "오늘 출범 카카오 뱅크, 어디서나 ATM 수수료 공짜". 중앙일보 (in 한국어). 2017-07-27. Retrieved 2017-11-25.
- ↑ "매월 현금으로 돌려주는 '카카오뱅크 프렌즈 체크카드'". 카카오뱅크 블로그. 2017-07-27. Retrieved 2017-11-25.
- ↑ "[금융단신] KB손해보험·SC제일은행·카카오뱅크 - 데일리팝" (in 한국어). Retrieved 2017-12-12.
- ↑ "카카오뱅크에서 해외송금하기(앱 사용법, 국가별 유의사항)". 카카오뱅크 블로그. 2017-08-24. Retrieved 2017-11-25.
- ↑ "카카오뱅크, 해외송금 서비스 공개…주목할만한 포인트는 무엇?" (in 한국어). Retrieved 2017-12-12.
- ↑ "카카오뱅크 대출을 고민하는 사람들이 알아야 할 5가지". 허핑턴포스트 (in 한국어). Retrieved 2017-12-12.
- ↑ "'손쉬운 대출' 카카오뱅크의 빛과 그림자" (in 한국어). 2017-08-27. Retrieved 2017-12-12.
- ↑ "[모바일 금융 빅뱅] 인터넷 전문은행 장단점 따져보니". mk.co.kr (in 한국어). Retrieved 2017-11-28.
- ↑ "[모바일 금융 빅뱅] 인터넷 전문은행 장단점 따져보니". mk.co.kr (in 한국어). Retrieved 2017-11-28.
- ↑ "카카오뱅크 영업 시작..."체크카드 혜택, 기대 이하"" (in 한국어). Retrieved 2017-11-28.
- ↑ "공인인증서 불필요…모바일 넘어 은행서비스 변화 불러" (in 한국어). 2017-11-09. Retrieved 2017-11-28.
- ↑ ""구형 갤럭시 안돼요"..카카오뱅크 이용 불편". 다음 뉴스 (in 한국어). 20170811113258. Retrieved 2017-12-18. Check date values in:
|date=(help) - ↑ 이세원 (2017-08-03). "카뱅 인기 후폭풍…체크카드 배송 4주·대출업무 '먹통'". 연합뉴스 (in 한국어). Retrieved 2017-12-18.
- ↑ "카카오뱅크 고객 폭주…접속자 몰려 가입에만 40분". 뉴스1 (in 한국어). 2017-07-27. Retrieved 2017-12-18.
- ↑ "[일문일답] 이용우·윤호영 카카오뱅크 대표 '8등급도 대출 가능'". it.chosun.com (in 한국어). Retrieved 2017-12-18.
- ↑ "카카오뱅크, 대출까지 해주고 신분증 재확인 한다며 거래제한 '논란'". sports.chosun.com. Retrieved 2017-12-18.
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