Version 1
: Received: 7 May 2024 / Approved: 7 May 2024 / Online: 7 May 2024 (15:44:11 CEST)
How to cite:
Oh, S.; Chung, G.; Cho, K. New Sustainable Fintech Business Models Created by Open API Technology: A Case Study of Korea’s Open Banking API Platform. Preprints2024, 2024050416. https://doi.org/10.20944/preprints202405.0416.v1
Oh, S.; Chung, G.; Cho, K. New Sustainable Fintech Business Models Created by Open API Technology: A Case Study of Korea’s Open Banking API Platform. Preprints 2024, 2024050416. https://doi.org/10.20944/preprints202405.0416.v1
Oh, S.; Chung, G.; Cho, K. New Sustainable Fintech Business Models Created by Open API Technology: A Case Study of Korea’s Open Banking API Platform. Preprints2024, 2024050416. https://doi.org/10.20944/preprints202405.0416.v1
APA Style
Oh, S., Chung, G., & Cho, K. (2024). New Sustainable Fintech Business Models Created by Open API Technology: A Case Study of Korea’s Open Banking API Platform. Preprints. https://doi.org/10.20944/preprints202405.0416.v1
Chicago/Turabian Style
Oh, S., Gyongchan Chung and Keuntae Cho. 2024 "New Sustainable Fintech Business Models Created by Open API Technology: A Case Study of Korea’s Open Banking API Platform" Preprints. https://doi.org/10.20944/preprints202405.0416.v1
Abstract
Fintech facilitates financial inclusion by introducing new sustainable and accessible business models in developing countries. Open banking API technology is used by various fintech businesses in both developing and developed countries, with varying effects on financial markets. It changes the financial market distribution structure by separating financial product manufacturing and distribution and intensifying competition between traditional financial institutions and fintech companies. Fintech companies innovate by using this tool to create new business models. In December 2019, Korea established a standardized "open banking API platform," sharing an interbank payment network with fintech companies. It has since shown explosive growth, surpassing the trading volume of the UK, the country that introduced open banking APIs for the first time. This study analyzes new business models fintech companies created using this API technology. Based on existing literature, statistics from the platform operator (the Korea Financial Telecommunications and Clearings Institute), and investigations of 30 Korean fintech mobile applications, this study analyzes new fintech business models that provide financial services using this platform. These companies create sustainable business models by combining multiple APIs. Four representative business models (simple funds transfer, simple payment, cross-border remittance, and asset management) are analyzed to reveal how fintech companies create business models with open APIs.
Keywords
open banking; open API; fintech; financial innovation; financial platform; payment infrastructure; business model innovation
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
