A Study on Changes in the Banking Industry led by the convergence of Finance and Technology: Focusing on Changes in the Banking Industry before and after TossBank

Abstract

The purpose of this study is to review the major changes led the first(K Bank), second(Kakao Bank) and third(Toss Bank) Korean virtual banks to the banking industry which had been conducting customer-oriented business activities with branch networks. Therefore we would like to contemplate on the convergence of Finance with IT Technology in the banking industry which was accelerated by the outbreak of COVID-19 pandemic around 2021 when Toss bank started business. The digital transformation of traditional banks has been progressed rapidly since the launch of Korean virtual banks. Kakao Bank successfully achieved an IPO after several series of success but failed to meet the government's goal of meet the medium-rate(Subprime) loan demand of the undeserved class. The establishment of Toss Bank was authorized mainly to supply more medium-rate(Subprime) loan in the personal banking area and, in the meantime, Big tech companies such as Naver were advancing into the financial industry. It is obviously seen that the convergence with the IT technology of the traditional banking industry has been accelerated faster than ever and banking industry itself keeps being revolutionized through Digital Transformation and a bold collaboration with Bigtech such as MyData Business.