South Korea formally launched an open banking service on Wednesday following a month-and-a-half-long pilot program.

The Financial Services Commission said the new system allows customers to use any mobile banking application to access, withdraw from or transfer between their domestic bank accounts.

Sixteen local banks, including KB Kookmin Bank, Shinhan Bank, Woori Bank and KEB Hana Bank, along with 31 fintech firms, are participating in the service to boost convenience and lower transaction costs for customers.

The commission said open banking will cut transaction costs to about ten percent of current levels.