Samsung, the renowned South Korean technology giant, is gearing up to step into the commercial banking sector by introducing a new super app. This strategic move by Samsung signifies its intention to expand beyond its traditional tech domain and compete with platforms like WeChat. The company aims to transform its existing financial services app, Momino, into a comprehensive super app, offering a wide range of features under one digital roof.
This ambitious venture is being led by Samsung Financial Networks, the conglomerate’s financial arm. The plan involves collaborating with a leading South Korean bank to enhance the app’s functionality and provide diverse financial services to users. Samsung has approached five prominent banks in South Korea—KB Kookmin, Shinhan, Hana, Woori, and the digital-exclusive K Bank—with proposals for partnership on this innovative project.
Although Momino currently offers services such as money transfer, currency exchange, and comparative pricing for real estate and cars, it has not gained widespread popularity, with only a few million users. The super app aims to significantly expand these offerings by leveraging the expertise and resources of the chosen banking partner.
A decision regarding the banking partner is expected to be made soon, possibly as early as Wednesday, according to reports. This partnership is crucial for Samsung, as regulatory restrictions in South Korea prevent the company from owning a bank directly. Therefore, collaborating with a bank will provide the necessary banking infrastructure, while Samsung will contribute software development and integrate its financial services to enhance the super app’s user experience and functionality.
Samsung’s entry into the commercial banking sector through the super app initiative is a significant development in the South Korean tech industry. It reflects the company’s commitment to innovation and its determination to diversify its offerings beyond hardware products like smartphones and TVs.
The super app concept has gained traction globally, with platforms like WeChat in China and Grab in Southeast Asia offering a wide range of services, including payments, transportation, food delivery, and more. By entering this space, Samsung aims to capitalize on the growing trend of digitalization and offer users a convenient and seamless way to access various financial services through its app.
The success of Samsung’s super app initiative will depend on various factors, including the quality of partnerships forged with banks, the effectiveness of the app’s features and user interface, and its ability to attract and retain users. With its vast resources and established brand reputation, Samsung is well-positioned to make a significant impact in the commercial banking sector and emerge as a formidable player in the super app market.
Overall, Samsung’s entry into the commercial banking sector with its new super app represents an exciting opportunity for the company to diversify its revenue streams, enhance its digital ecosystem, and strengthen its position in the rapidly evolving landscape of financial technology.
