Banking’s Tight A Hold Of Their Cyber Security.
Regulations placed when it comes down to “firm banking”, the banking method used to pay for mobile phone bills, insurance premiums or newspaper subscription fee, will be strengthened.
This made it simply possible by an agreement done from the user through the Korea Financial telecommunication and Clearing Institute that takes a certain amount of funding from the user’s bank account. After a deduction is made from the account, the user’s passbook is indicated as “FB”, meaning a firm banking transaction.
According to the institute, there are over 10,848 companies and organizations using the firm banking services, with the total transaction volume reaching 556.7 trillion won last year. The number of small-scale companies that rely on third-party agencies for firm banking that was up by 22,441 during the previous year, with the transaction volume amounting around 2 trillion.
The banking regulators are keeping a really close watch on these agencies as ongoing complaints surrounding the continuous unauthorized transfer have occurred main within these agencies.
The Financial Services Commission and the Financial Supervisory Service will establish a system whereby the regulators could monitor the performances of the agencies. Banks shall be required to send text message towards bank customers every time a fund has been transferred through the firm banking service.
In addition, the regulators will mandate the agencies to use escrow accounts for the customers who deposit funds to the agencies’ own accounts. Any agency that does not comply with the new regulations will be subject to warnings and in some cases cancellation of the license.