Toss Bank has applied for preliminary approval for financial investment business from the financial authorities to sell funds.
According to the financial sector on the 30th, Toss Bank submitted an application for preliminary approval for financial investment business, including investment trading and investment brokerage, to the Financial Services Commission on the 23rd.
If Toss Bank receives the formal approval for financial investment business, it will be able to sell funds designed by the asset management company through its application (app) in a non-face-to-face manner. Toss Bank plans to enter the non-face-to-face asset management (WM) market through fund sales.
It is expected that this will strengthen platform capabilities and secure non-interest income. Toss Bank has been conducting consulting to enter the fund market since last year.
Previously, KakaoBank became the first internet-only bank to receive approval for financial investment business in 2023, entering the fund market. Following the launch of six fund products the following year, KakaoBank has since expanded its product lineup to 23.
The financial authorities reportedly raised concerns about incomplete sales of online fund sales during KakaoBank's approval review for financial investment business. They also suggested that there should be measures in place to address consumer complaints or grievances. As a result, it took about two years for KakaoBank to obtain formal approval for financial investment business. However, since there is a precedent with KakaoBank's review, Toss Bank's review period is expected to be shortened.