Finda wins approval to buy Daewon Savings Bank in 12 billion won deal
In short
Loan comparison platform Finda received approval from the Financial Services Commission to become the largest shareholder of Daewon Savings Bank (대원저축은행). Finda takes a 60% stake and JB Financial Group's Jeonbuk Bank takes 40%, in a deal worth a total of 12 billion won. Several outlets report it as the first savings bank acquisition by a domestic fintech company.
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Finda, a loan comparison and brokerage company, has won approval to acquire Daewon Savings Bank. Korea Economic Daily reported that the Financial Services Commission approved the change of major shareholder at its regular meeting on 21 October, after the matter went through a subcommittee on 16 October. The commission found no particular problem with the acquisition, the paper reported. Chosun Ilbo and Seoul Economic Daily said Finda announced the approval on 21 October; Newsis said 22 October. [ 1 , 2 , 4 , 7 ]
Finda takes a 60% stake and becomes the largest shareholder. Jeonbuk Bank, part of JB Financial Group, takes the remaining 40%. The total amount is 12 billion won. Yonhap said Finda had signed a share purchase agreement for 100% of Daewon Savings Bank for that sum, with Finda's share at 7.2 billion won and Jeonbuk Bank's at 4.8 billion won. Yonhap described JB Financial Group as Finda's second-largest shareholder. Chosun Ilbo, Asia Economy, Seoul Economic Daily, Yonhap and Newsis all reported that this is the first time a domestic fintech company has acquired a savings bank. [ 1 , 2 , 3 , 4 , 5 , 7 ]
Chosun Ilbo and Seoul Economic Daily described Daewon Savings Bank as a small bank based in Gyeongju, North Gyeongsang, with Daegu, North Gyeongsang and Gangwon as its business areas. Both said operations have been effectively suspended since its existing shareholder, Daea Savings Bank, began seeking a sale in 2015, and that total assets were about 3.1 billion won in the first half of the year. Chosun Ilbo and Asia Economy gave its founding year as 1998; Seoul Economic Daily gave 1988. [ 2 , 3 , 4 ]
Finda said it will move beyond comparing and brokering loans to designing and supplying financial products, starting with checking accounts and mid-rate credit loans. It plans to use financial data and artificial intelligence, and Seoul Economic Daily, Yonhap and Newsis said it will build what they called AI-native banking. Jeonbuk Bank is to support risk and loan soundness management, internal control and regulatory compliance. Yonhap said Finda also plans a further capital increase to strengthen the small bank's capital stability. [ 2 , 3 , 4 , 5 , 7 ]
Chosun Ilbo reported that Finda plans to hold a board and shareholders' meeting to appoint a new chief executive and to move the head office to another part of North Gyeongsang or to Gangwon. It would then rename the bank Finda Savings Bank and start services next year. Finda, founded in 2015, brokers more than 300 loan products from 98 financial institutions, with cumulative brokered loans above 15 trillion won. Chief executive Lee Hye-min (이혜민) said: "Through this acquisition, we will evolve into a company that goes beyond comparing and brokering financial products to designing and providing directly the finance consumers need." [ 2 , 3 , 4 , 7 ]
Why it matters
Finda says the deal lets it move from comparing and brokering loans to designing and supplying financial products itself. Outlets describe it as a first for a domestic fintech company; the documents do not say how it will affect the wider market.
Key facts
- The Financial Services Commission approved the change of major shareholder for Finda's acquisition of Daewon Savings Bank at its regular meeting on 21 October. [ 1 , 5 ]
- Finda takes a 60% stake and becomes the largest shareholder; Jeonbuk Bank of JB Financial Group holds the remaining 40%. [ 2 , 3 , 4 , 5 , 7 ]
- The total acquisition amount is 12 billion won. [ 2 , 3 , 4 , 5 , 7 ]
- Daewon Savings Bank is a small savings bank headquartered in Gyeongju, North Gyeongsang, with Daegu, North Gyeongsang and Gangwon as its business areas. [ 2 , 3 , 4 , 7 ]
- Finda plans to launch checking accounts and mid-rate credit loans. [ 2 , 3 , 4 , 5 , 7 ]
- Finda brokers more than 300 loan products from 98 financial institutions, with cumulative brokered loans above 15 trillion won. [ 2 , 3 , 4 , 7 ]
Confirmed by several sources
- The Financial Services Commission approved Finda's acquisition of Daewon Savings Bank as a change of major shareholder. [ 1 , 2 , 4 , 5 ]
- Finda holds 60% and Jeonbuk Bank of JB Financial Group 40%, for a total of 12 billion won. [ 2 , 3 , 4 , 5 , 7 ]
- Outlets report this as the first acquisition of a savings bank by a domestic fintech company. [ 2 , 3 , 4 , 5 , 6 , 7 ]
- Jeonbuk Bank is to support risk and loan soundness management, internal control and regulatory compliance. [ 2 , 3 , 4 , 5 , 7 ]
Still unclear
- When Daewon Savings Bank was founded. Documents 2, 3 and 7 say 1998; document 4 says 1988.
- On which day Finda announced the approval. Documents 2, 3, 4 and 5 say 21 October; document 7 says 22 October.
- The timing of Finda's plans for the bank, including a new chief executive, a headquarters move, a rename to Finda Savings Bank and a service launch next year. Only document 2 gives these plans.
- Whether Finda will put in more capital. Document 5 says Finda plans a further capital increase to improve the bank's capital stability; no other document mentions it and no amount is given.
What local media are saying
Timeline, local time
- Korea Economic Daily reports that the Financial Services Commission approved the change of major shareholder at its regular meeting on 21 October. [ 1 ]
- Chosun Ilbo reports that Finda said it received the approval on 21 October. [ 2 ]
- Yonhap reports the commission's final approval and the shareholding split. [ 5 ]
- On 22 October, Newsis reports the approval, saying Finda announced it on 22 October. [ 7 ]