Toss Bank Plans to Obtain Internet-only Bank Licence in Korea

The Financial Services Commission (FSC) said that it has given preliminary approval to Toss Bank in December 2019 after reviewing opinions of its outside evaluation committee, making it the third internet-only bank operating in Korea.

Toss Bank is a consortium which includes Viva Republica, Hana Bank, Hanwha Investment & Securities, Standard Chartered Bank Korea, Welcome Savings Bank, Ribbit Capital, the Korea Federation of SMEs and other shareholders.

As part of the consortium's efforts to set up a bank, Toss Bank Korea Co Ltd has been officially registered with KRW 250 billion (USD 223 million) in capital.

The bank plans to obtain approval from the FSC by March and launch operations in July. The bank may commence operations within H1 if approval is granted more quickly.

In assessing the licence application, the FSC will examine Toss Bank's capital and financing plans, shareholder structure, business plans, executives, manpower business facilities, technical systems and physical facilities.

In addition, the bank plans to establish a credit rating system that scores borrowers using data from the existing Toss payments platform, in order to target small business owners and individuals with insufficient financial and credit history – who currently have difficulties obtain loans from banks.