South Korean financial institutions plan to spend a total of 585 billion won ($492 million) this year to adopt new technologies, such as artificial intelligence and big data analytics, data showed on May 14.
The planned spending reflects efforts by financial authorities to take deregulatory actions and cut red tape to promote the fintech industry.
According to a survey of 108 financial firms, conducted by the Financial Supervisory Service in March, 71 firms plan to further embrace new technologies this year.
Most firms plan to spend their budget to build platforms for AI and big data analytics as part of their efforts to cut costs and offer better customer services, the FSS said.
However, the FSS warned that risks of cybercrimes rose as financial firms are increasingly relying on new technologies.
The FSS said it will encourage financial firms to strengthen their internal control systems.
Risks of infringement of people’s right to privacy by companies in the financial sector has been a major concern as many people who use online shopping or financial services put their privacy at risk.
By Ram Garikipati and newswires (firstname.lastname@example.org)