 "Although Samsung is involved in the financial sector in South Korea, they are not allowed to own a bank. Image Credit: Reuters")
Having dominated everything tech for years, Samsung now wants to be a financial institution. The South Korean giant is now gearing up to make its mark in the commercial banking system in South Korea and quite possibly, other countries in Asia, with the launch of a new super app, if recent South Korean news reports are anything to go by.
The move signifies Samsung’s ambitious venture into financial services, through which it hopes to transform its existing financial app, Momino, into a comprehensive super app, similar to what we see in China’s WeChat platform.
The endeavour is led by Samsung Financial Networks, a division which includes the conglomerate’s four financial entities: Samsung Card, Samsung Life Insurance, Samsung Fire & Marine Insurance, and Samsung Securities. A report by The Korea Economic Daily claims that Samsung is actively seeking collaboration with at least one prominent bank in South Korea to develop and deploy their new super app.
The report quotes sources, who opted to remain anonymous, revealing that Samsung has started an initial round of discussions with five leading banks, namely KB Kookmin, Shinhan, Hana, Woori, and the digital-exclusive K Bank.
These discussions revolve around Samsung’s proposal to enhance its existing Momino app into a multifunctional super app, offering various financial services ranging from money transfers to real estate and car price comparisons.
Sources also told The Korea Economic Daily that banks are supposed to meet with executives from Samsung on Tuesday where they are slated to present their proposals to Samsung. Furthermore, the decision on a potential partnership can be expected as early as Wednesday.
Impact Shorts
More ShortsDespite its global stature and ownership of multiple financial affiliates, Samsung is barred from owning a bank in South Korea. Consequently, the tech giant has had to go for a collaborative approach and leverage the infrastructure of a banking partner while providing software support and integrating its financial services.
Samsung’s foray into the commercial banking sector signals a strategic shift aimed at diversifying its service portfolio and tapping into new revenue streams. With the impending launch of its super app, Samsung is poised to make substantial strides in reshaping the landscape of digital financial services in South Korea.
(With inputs from agencies)