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| Shinhan Financial Group Chairman Cho Yong-byoung |
Shinhan Financial Group will overhaul its pension service to boost profit by integrating its key subsidiaries and removing redundancies, the holding company said Wednesday.
The measure is part of a group-wide strategy to secure stable profit through continued streamlining.
Under the initiative, the group will set up a new "matrix" system whereby similar services operated by investment and life insurance subsidiaries will be merged.
The launch of the newly integrated system, scheduled for June, will enable efficient resources management including manpower and capital.
Business portfolio diversification will be strengthened by expanding the high-yield business model.
Management of previous lucrative businesses will be used as a reference for closer cooperation, including global investment banking, asset management and real estate investment trust (REIT) businesses.
A comprehensive platform will be set up for customers to easily compare benefits provided by the group's various pension programs. It will allow customers to change subscriptions based on their short-term or long-term needs.
The group will introduce "Target Date Fund 2050," targeting young workers to help them manage future income early.
The new product will add to the group's investment portfolio, with plans to introduce similar ones that can best meet customer needs in various stages of their lives.
Under the directive of group chairman Cho Yong-byoung, pension management commission fees will be lowered.
"Continued development of financial products will be offered to help guarantee stable profit. Given the fund is managed at least 20 years or up to 30 years, with monthly premiums paid by salaried workers, we take much responsibility to meet their needs," a Shinhan official said.
"The pension market has been booming over the past few years, but stable management or profit have not been guaranteed as much as they need to be, leading to some customer dissatisfaction. We hope our plan will help with the issue."
