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Woori Bank joins move to establish internet-only bank
Woori Bank CEO Cho Byung-kyu / Korea Times file
By Lee Kyung-min
Woori Bank has joined a consortium led by Korean Credit Data (KCD) to establish the country's fourth internet-only bank, according to the lender Tuesday.
"We have sent a letter of intent to participate in the bid to launch an internet-only bank," a Woori official said.
The move is to gain a greater foothold in the internet-only bank business, as illustrated by its 12 percent stake equity investment in Kbank, the country's first internet-only bank launched in 2016.
Advancing the prospects is politically apt cooperation with KCD, which is known for "cash note," a management and accounting service for small businesses. The financial service provider representing small businesses can bolster Woori's business profile as a leader in inclusive finance.
The bid can propel the growth drive of the lender, as outlined by the establishment of a New Business Promotion Committee under direct supervision of Woori Bank CEO Cho Byung-kyu a day earlier.
High-tech innovation projects undertaken by the envisioned bank can facilitate Cho's efforts to fortify the non-interest income business of the bank and, by extension, its holding firm Woori Financial. The group relies on the bank subsidiary for over 99 percent of its profit.
Woori Bank said Monday that the committee will identify and foster new growth-driving businesses for the bank, a process defined by highly efficient decision-making.
The heads of the bank's key divisions who will sit as committee members are those in charge of domestic sales, corporate investment finance, digital, IT, risk management, human resources and management planning.
Potential new income revenue sources include affordable mobile carrier service and a security token offering, a digital token supported by blockchain technology that represents a stake in an asset.
Woori also plans to expand strategic alliances with startups showing promise in new technology development.
Korea's three existing internet-only banks are Toss, a mobile money transfer app owned by Viva Republica, Kakao Bank, operated by mobile messaging service provider Kakao Corp. and Kbank, operated by telecommunications firm KT.