Data startup BankSalad begins monetizing free genetic testing

BankSalad Co., once known as a fintech company that develops banking apps, added a new vertical last year that has witnessed robust demand. 

The South Korean startup is now categorized as a MyData business, a government-led business model that offers personal credit data management. Such businesses integrate banking transactions with credit card records and provide customers with personalized product recommendations.

Since last October, the company has also been providing free genetic testing to 700 people a day on a first-come first-served basis. 

A daily average of 5,000 people try logging in to the service to try to be one of the 700 that snag free testing. Genetic testing in Korea normally costs from 100,000 won to 300,000 won ($75 to $224).

“We will secure around 1 million sets of genetic data by popularizing genetic testing, which isn’t yet easily accessible to the public,” BankSalad founder and CEO Kim Tae-hun told The Korea Economic Daily in an interview this week.

Kim said he aspires to develop BankSalad into a "digital partner" that can help users with both health and personal finance management. 

Only a few years ago, BankSalad was known as one of the country's three big fintech firms, alongside Viva Republica Inc.’s Toss and Kakao Pay Corp.

“Those who were critical of this latest vertical said it does not make sense for a fintech to spend so much money to provide genetic testing, but BankSalad’s identity is that of a data company, not finance,” said Kim, adding that investment into genetic testing was worthwhile because users benefit. 

Now, the company is monetizing the testing that has been provided free up to now. 

Starting this month, customers who open a cash management account (CMA) at SK Securities are automatically eligible for a free genetic test. This win-win strategy allows a user to get tested without delay while BankSalad earns a commission. 

The company says it will use the collected data to provide personalized health care and insurance services to its clients down the road.  

Kim said he expects BankSalad to turn a profit by the end of 2023. 

Write to Nan-Sae Bin at binthere@hankyung.com
Jee Abbey Lee edited this article.