Company: SHG
Filing Date: 2025-04-23
Form Type: 20-F
Source: 0001193125-25-089950
Chunk: 126

Company: SHINHAN FINANCIAL GROUP CO LTD
Filing Date: 2025-04-23
Form: 20-F
Chunk 126
---
, commercial banks are facing increasing pressure to upgrade their service platforms to attract and maintain online users, which represents a growing customer base compared to traditional customers who have primarily conducted banking in-person at physical banking branches.

Since 2019, commercial banks including Shinhan Bank and other local banks and fintech companies have been offering open banking service. Open banking service allows each fintech company and bank to provide banking services, such as checking balances and making withdrawals and transfers, with regards to customers’ accounts at other banks. Using open banking service, customers can easily access accounts, products and services across multiple banks, instead of being limited to the accounts, products and services available at the particular bank that they deal with. In addition, the MyData service was launched in 2020, allowing and requiring (upon the customer’s request and subject to compliance requirements) financial institutions that have been approved by the Financial Service Commission as a MyData service provider access and sharing of customers’ personal information, credit information and transaction data. Shinhan Card and Shinhan Bank have each obtained a

<div align='center'>77</div>

license from the Financial Services Commission as a MyData service provider. Shinhan Card launched its MyData business in December 2021, followed by Shinhan Bank in January 2023. As of December 31, 2024, the Financial Services Commission has granted licenses to 66 companies to operate as MyData service providers, 23 of which are fintech or IT firms, and 65 companies are currently providing MyData services. This has resulted in competition between traditional financial institutions like us and fintech firms intensifying, particularly with respect to asset management services. If additional fintech companies operate as MyData service providers, we expect competition for customers among banks and fintech firms to further intensify. In addition, in May 2023 the Government launched a platform where consumers can compare loan products from various financial institutions and apply for debt consolidation on a single platform. In January 2024, the platform was expanded to include mortgage loans and long-term deposit-based rental loans. Additional loan types, such as business loans and credit card loans, are also expected to be included in the platform, which may further intensify competition among commercial banks in Korea.

Since the global financial crisis, the Government has subjected Korean financial institutions to stricter regulatory requirements and guidelines in areas of asset quality, capital adequacy, liquidity and residential and other lending practices. For further details of such capital adequacy requirements, see “Item 3.D. Risk Factors