The Internet-only Kakao Bank launched services for the general public at 7 a.m. Thursday. The bank is run by Kakao, which operates the nation's largest messaging service.
 
Mobile phone users can instantly set up bank accounts without having to make visits to bank branches if they download a related application and undergo real name confirmation. Consumers can get small loans or settle payments through the service.
 
Other than Kakao Bank, K-Bank is currently the sole other Internet-only bank in the nation.
 
Financial Services Commission Chairman Choi Jong-ku said he will push for a special law on supporting financial innovation to boost free competition among new financial services. Choi also expressed hope that the launch of Internet-only banks will produce diverse interest rate products for low-income earners and will lead to pushing down commissions.
 
Competition is expected to heat up between Internet-only banks and commercial banks in attracting customers.