Internal controls for fintech financial platforms are being strengthened. Platform-based financial services such as payments, transfers and top-ups have become part of everyday financial infrastructure, raising concerns that IT outages could immediately lead to consumer harm and a loss of market trust.

Financial authorities have recently called on big tech-affiliated electronic financial service providers to build IT stability and internal control systems comparable to those of traditional financial companies.

With one-app structures and links to external systems expanding, an outage in a specific function can spread to a full service shutdown. That is increasing the importance of change management, pre-testing, real-time monitoring and emergency response systems, analysts say.

The widening use of AI has also emerged as a new management challenge. As AI is applied across finance, including credit assessments, detection of abnormal transactions and financial counselling, there are calls for ongoing verification and accountability systems rather than a simple focus on whether adoption is allowed.

Financial authorities are also revising mechanisms to support innovation alongside tighter regulation.

The financial regulatory sandbox will be revamped to lower barriers for fintech startups and help strong services move quickly into the formal system.

The competitiveness of big tech and fintech financial platforms is expected to depend not only on the speed of service expansion but also on how sophisticated their IT stability, AI risk management and consumer protection systems are.

• Big tech financial platforms face a heavier burden in IT management; financial authorities stress "thorough accident prevention" • "To speed up AI innovation in finance, barriers such as network separation and infrastructure must be lowered" • Financial regulatory sandbox to shift to a fintech-tailored model

The finance sector's use of AI is also expanding into internal controls and responses to financial fraud.

As financial authorities increase pressure over IT stability and consumer protection, financial firms are accelerating efforts to upgrade accident-prevention systems using AI.

Shinhan Financial Group plans to operate 'SCoRE AI', combining generative AI with an internal control platform based on responsibility structure charts, to support checks of executives' responsibilities, verification of supporting materials and analysis of external regulatory issues.

Internal control work is shifting from simple after-the-fact checks to AI-based ongoing management systems.

The Financial Security Institute and 3 internet-only banks developed a joint AI model to detect voice phishing. They set up a structure to strengthen detection capabilities without sharing original data between financial firms.

Hana Bank also introduced a service in its mobile banking app 'Hana 1Q' that checks in real time whether suspicious text messages are smishing, in cooperation with the Korea Internet & Security Agency.

The competition over AI in finance is spreading beyond efficiency improvements into a race to build core infrastructure supporting internal controls, detection of abnormal transactions and protection for financial consumers.

• Financial Security Institute and 3 internet banks develop joint AI model for voice phishing detection • Shinhan Financial Group combines generative AI with responsibility structure charts to upgrade internal controls • Hana Bank introduces real-time smishing check service with KISA

Overseas, calls are also growing for structural transformation of banking systems.

Critics say payment and settlement infrastructure designed decades ago still increases costs and delays in banking operations, and blockchain is being discussed as an alternative.

Analysts say distributed ledger technology could improve structures that rely on intermediaries and manual verification in areas such as interbank payments, cross-border remittances, loan management and trade finance.

The need is also growing for proactive responses by financial authorities as AI spreads. There are concerns that if key decisions such as credit assessments, loan pricing and fraudulent transaction detection become concentrated in a small number of AI models, individual errors could spread into risks for the financial system.

Against this backdrop, banks' AI competition is moving beyond the adoption of generative AI to a race for agentic AI that can perform document analysis, decision support and automated task execution.

• Banks still use systems designed decades ago...is blockchain the answer? • After an accident, regulation is too late...warning signs from financial authorities in the AI era • An era of 100-fold productivity is coming...banks enter an 'agentic AI' war beyond generative AI

The Youth Future Savings Deposit is showing signs of strong early demand.

The Youth Future Savings Deposit, which began accepting applications on the 22nd, had 1,012,000 applicants as of 1 p.m. on the 26th.

Financial authorities plan to operate the programme so that all eligible young people can open accounts.

The Youth Future Savings Deposit is a three-year flexible installment savings product for young people aged 19 to 34. Customers can deposit up to 500,000 won per month and receive government contributions and tax exemptions on interest income.

As the product structure does not differ significantly by bank, lenders are competing to secure young customers by offering preferential interest rates, prize events and linked benefits with affiliates.

Because it is a policy product limited to 1 account per person, attention is also focused on the possibility that the bank chosen for the account could later secure a long-term customer relationship based on salary transfers, cards, investment and telecommunications services.

Still, the possibility of limits on overlapping subscriptions with investment-oriented policy products such as youth ISAs remains a variable. Another point to watch is where young people's funds move between stable savings deposits and investment products.

• Youth Future Savings Deposit applications surpass 1 million; all who pass screening to open accounts • From preferential rates to events and affiliate benefits...banks heat up battle to secure Youth Future Savings Deposit customers • Applications open for Youth Future Savings Deposit; focus on movement of young people's funds

The stock market in July is expected to be a phase that reaffirms confidence in semiconductor earnings.

The recent sharp fall in the KOSPI is attributed to a combination of a tech stock shock triggered by Apple, concerns over AI infrastructure costs and the unwinding of crowded semiconductor positions.

With the weight of Samsung Electronics and SK Hynix rising, index volatility expanded as demand for single-stock leverage ETFs added to the mix.

As financial authorities examine overheating in leverage ETFs and controversy over including SpaceX, the burden on the investment industry to manage products and protect investors is also increasing.

• [Market outlook] Where the KOSPI heads in July...Samsung Electronics and SK Hynix profit forecasts are key • SoftBank loses 12 percent after Apple shock...Samsung and SK Hynix also stumble • Leverage ETF overheating and SpaceX controversy...investment industry on edge

Other major moves in finance and fintech were also compiled.

KB Kookmin Bank will support borrowers of its Saehope Holssi product by allowing the portion of interest burdens above 7 percent to be used for principal repayment. It will also provide guaranteed loans worth 80 billion won with the Korea Credit Guarantee Fund to decarbonisation and carbon-free energy companies.

Shinhan Financial Group is discussing expanded entry into Uzbekistan's financial market. Shinhan Bank is also launching a cross-currency overseas remittance service for corporate customers in 11 currencies to improve convenience in global financial transactions.

• KB Kookmin Bank to reduce interest burden for Saehope Holssi borrowers • KB Kookmin Bank to support 80 billion won in guaranteed loans for decarbonisation companies • Shinhan Financial Group discusses expanding entry into Uzbekistan's financial market • Shinhan Bank launches cross-currency overseas remittances for corporate clients

Hana Financial Group is cooperating on financial support for an urban advanced logistics complex development project. Hana Bank will provide inclusive finance worth 1.3 trillion won for small business owners and borrowers with faithful repayment records. Hana Securities opened a premium financial centre at Hyundai Department Store's Mokdong branch, expanding wealth management touchpoints.

Woori Bank and NongHyup Bank also signed a green policy finance agreement with the Korea Technology Finance Corporation to strengthen guarantee support for companies aligned with carbon reduction and the green taxonomy.

• Hana Financial Group cooperates on financial support for urban advanced logistics complex development • Hana Bank to provide 1.3 trillion won for small business owners and faithful repayers • Hana Securities opens premium financial centre at Hyundai Department Store Mokdong branch • Woori Bank, KOTEC and NongHyup Bank sign agreement to support green policy finance

Payment and overseas spending touchpoints are also widening. Toss Payments launched a directly integrated payment solution with Shopify to reduce the burden on online businesses of integrating payment systems. Kakao Pay is also securing demand for overseas payments as the 'Travelog Check Card' introduced with Hana Card surpassed 500,000 accounts.

• Toss Payments launches directly integrated payment solution with Shopify • Kakao Pay's Travelog check card surpasses 500,000 accounts

Companies are also accelerating efforts to apply AI technology and secure growth foundations. Webcash built an AI agent-based inquiry service for NH NongHyup Bank's corporate banking. Travel Wallet selected IPO underwriters with a goal of listing on the Kosdaq next year, and Habit Factory was selected for the Ministry of SMEs and Startups' 'Unicorn Bridge' programme.

• Webcash builds AI agent for NH NongHyup Bank corporate banking • Travel Wallet selects NH Investment & Securities and KB Securities as IPO underwriters, targets Kosdaq listing next year • Habit Factory selected for MSS 'Unicorn Bridge'