How Machine Learning and AI will Revolutionize Korea’s Fintech Industry
Machine learning and AI in South Korea has gotten more sophisticated over the years. A lot has to do with the South Korean government's commitment to invest 1 trillion won to commercialize AI semiconductors. These AI semiconductors will be utilized in many fields such as self-driving cars, IoT appliances, biotech, and fintech. In addition, they will play a large role in how AI will revolutionize Korea's fintech industry moving forward.
The Korean government's support of AI is an important part of South Korean President Moon Jae-in's administration plans for South Korea's economic future. That is because AI is a part of his three strategic areas for government investment for innovation. His plans will invest 2.2 trillion won over 5 years (2017-2022) to support the development of AI technology by establishing 6 AI graduate schools to train the next generation of talent for South Korea in the AI industry. The Korean government has even established the AI Open Innovation Hub to provide access to algorithms, data, and high powered computing. The Seoul Fintech Lab is also being supported by the Seoul Metropolitan Government. We are a fintech accelerator that houses around 100 fintech startups. Many of these fintech startups are developing financial solutions using AI technology.
How AI will Revolutionize Korea's Fintech Industry
AI and machine learning (ML) are efficient tools for the financial sector. The overall goal is to make the entire financial process easier for customers. In addition, AI-based financial technologies offer solutions for real-time data integration and enhanced security.
Most financial transactions are done through smartphones in Korea. However, with the addition of AI and ML, data can be easily processed to improve financial decisions. Now customers get access to investment forecasts and simulations that were once only available to investment firms. There are many other cases where AI can have a major impact on the financial sector in South Korea. Below are some of the most innovative fintech startups in Korea using AI technology to offer better financial services for their customers.
Fintech Startups Developing AI for Financial Services
QARAsoft is the developer of a robo-adviser solution called Market Dreamer. The fintech startup specializes in AI deep learning technology and provides customized investment analysis to asset management firms. It does everything from analyzing a customer's financial goals, timeframes, and even their risk tolerance. AI deep learning plays a vital role in creating the best investment strategy for its customer. QARAsoft has attracted 3.5 billion won ($3 million) worth of Series A investment from Mirae Asset, Kinsley Asset Management, Naver, and Nexon's NXC.
The investment will go towards upgrading the "mobile small investment platform," which was selected as an innovative financial service by the Financial Services Commission in April. This innovative service is a service that supports general investors to invest in small amounts of overseas-listed stocks through Mirae Asset Daewoo and Kuala Lumpur's mobile service.
SBCN is a fintech startup that collects, refines, and processes scattered financial data using AI and big data technologies. They provide AI-based securities information services and uses their “Deep Think” engine to provide financial algorithms to investors. Deep Think is already being used by some of the top brokerage firms in Korea. Some of their partners include securities firms such as Kiwoom Securities, Korea Investment & Securities, Hana Financial Group, Ebest Securities, and Mirae Asset Daewoo Securities. Since joining Seoul Fintech Lab, SBCN has gotten 2 billion won in investment and increased its company size to 15 employees.
The cryptocurrency market is a very volatile market. Team Blackbird offers an AI-based cryptocurrency data analysis service. The aim is to predict crypto prices with reasonable accuracy. This can help new and professional traders in every step of the trading process. In addition, the data can be used to run simulations and test trading strategies. The startup has signed MOUs with two US cryptocurrency cancellation funds and established an overseas branch in Delaware to carry out its business.
XQuant offers a machine learning-based investment solution which can be used as a tool by financial experts to make smart trading decisions. They provide customized solutions to help organizations process and analyze unstructured financial data. The startup has established a local corporation in Tunisia in September of 2019.
Who's Good is Asia's first AI-driven ESG Insight provider. ESG Insights are governmental and scientific news and insights on investor-oriented environmental, social, and governance data. Therefore they provide objective and up-to-date corporate ESG insights that are powered by AI technology. They are able to leverage 350 public data sources and 93 news data sources in Korea to uncover key insights. Their analysis covers all listed and non-listed companies in Korea. Some of their partners and clients include Hanwha Asset Management, Woori Bank, KB Financial Group, Shinhan Bank, and Naver just to name a few.