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KEB Hana teams up with Ant Financial for digitalization

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By Lee Kyung-min
  • Published Jun 6, 2019 5:02 pm KST
  • Updated Jun 6, 2019 5:51 pm KST

KEB Hana Bank CEO Ji Sung-kyoo

By Lee Kyung-min

KEB Hana Bank's Chinese corporate entity has introduced a mobile platform for loan services in China as part of its continued efforts for digitization, the bank said Thursday.

The development follows a joint project between KEB Hana and Ant Financial, a fintech affiliate of Alibaba, China's e-commerce giant.

The new platform will enable KEB Hana to offer financial services to 1 billion users of Alipay, Alibaba's payment platform, including taking out small, short-term loans.

The bank plans to use consumption pattern analysis data of Alipay users in assessing credit risks and develop more financial products that best meet customers' needs.

This will help the two entities establish a stable source of profit.

Up to 300,000 yuan (51 million won) will be transferred to a loan seeker's account upon approval from the credit review department.

A loan request can be submitted via mobile app, after clicking a few buttons and entering the amount and maturity date of the loan.

The minimum borrowing rate is set at 5.48 percent, although differing rates can be applied based on individual credit scores.

“China's consumer financing industry is growing in a way that best serves the needs of customers that increasingly use internet-based transactions. We will continue cooperation with ICT firms like Alipay to facilitate digital transformation,” a KEB Hana official said.

The project seeking business expansion in China is in line with KEB Hana Bank CEO Ji Sung-kyoo who vowed at his inauguration ceremony to prioritize digital transformation and globalization in a move to become a leading, competent bank in the rapidly changing market.

Ji said under Vision 2540, he will seek to increase the net income derived from overseas profits to 40 percent from the current 15 percent by 2025.

KEB Hana had 34 branches overseas in 2018, accounting for the largest number among the total 189 overseas branches run by Korea's top commercial banks.