Shinhan steps up fintech drive
Shinhan Bank Executive Vice President Ryu Dong-ook, second from left, stands with executives from its “fintech” business partners after the bank signed a strategic partnership to promote fintech startups at Shinhan Bank’s headquarters in Taepyeong-ro, central Seoul, March 20. / Courtesy of Shinhan Bank
By Choi Kyong-ae
Shinhan Bank will partner with information-technology companies to develop customized financial technology, or fintech, business models to enter global markets, the bank said Wednesday.
“Before we go abroad to establish a presence in the global fintech market, we are planning to provide fintech-based financial services to foreigners who visit Korea or reside in Korea,” Shinhan Bank said in a statement.
But the bank did not elaborate on its global fintech expansion strategy.
While seeking a long-term growth engine through fintech partnership in global markets, Shinhan Bank will focus on the domestic market, the statement said.
“Korea has a big growth potential in terms of fintech businesses as most of its people carry mobile devices and its wired and wireless telecommunications networks are unrivaled compared to other countries,” a Shinhan Bank official said in the statement.
To take the lead in the emerging fintech market, Shinhan Bank said it had formed business ties with information, communication and technology, or ICT, companies in recent past years.
On March 20, Shinhan Bank signed an agreement with Accenture, the Ireland-headquartered world’s largest consulting company by revenue, to open the “Future’s Lab,” a program to support fintech startups, the statement said.
Under the program, the bank’s fintech partners share their knowhow with fintech startups and help them grow over a short period of time, the official said.
In its continued fintech drive, Shinhan Bank signed an agreement with SK Planet, digital contents platform affiliate of SK Group, on March 24 for partnership in mobile payment and joint development of new fintech products, he said.
As a result, Shinhan introduced a new online-only product dubbed “11ST Preferential Installment Savings,”which offers higher interest rates than market rates, in April.
If a Shinhan customer pays for his purchases at the 11ST online shopping mall with a Shinhan card, his installment savings’ interest increases depending on his spending, the official explained.
As it sees fintech businesses as a new growth engine, Shinhan Bank will aggressively set up diverse strategies and form partnerships with ICT companies, he said.
Fintech, a general term for technology designed to improve and upgrade the banking system, has been building up a lot of steam in recent years. According to Accenture estimates, investments in this field reached $12.2 billion in 2013, jumping from $4 billion a year earlier.