A Foreigner's Expectations from Korean Banks
New employees at Woori Bank make bread and noodles at a branch of the Red Cross in Seoul earlier this month. / Courtesy of Woori
By Subedi Prasad Netra
Banks are institutions for management of valued financial resources. With the increased scope of monetary transactions through banks and its ATM counters, the quality and coverage of services are under “acid test” of this trade in services. Among others, foreigners living in Korea are also getting various services from banks. Some grey spots in such services are demanding "fair and innovative ideas in action" for services to non-Korean nationalities.
Thousands of foreign students are shaping their minds in Korean universities. There are sizable number of business entrepreneurs, workers and tourists from global family enjoying their days in Korea. The duration of the stay may range from a couple of days to years. With the increase in inflow of foreigners, the role and scope of banks both increased. Still there is gap to minimize for esteemed condition of service.
In Korea, different financial groups have been running their respective banks like Korea Exchange Bank, Woori Bank, KB Kookmin Bank, Citibank, Shinhan Bank, and some others. As we observe the bank-client interface in city area, we find it satisfactory. Not all but few banks are offering package services to foreigners. In recent days, almost every banks offer common banking services like deposit, withdrawal, currency exchange and transfer functions, and ATM based banking. Some banks like Woori also offer facility of debit cards to foreigners with minimum procedures, which is appreciable.
We can find some messages like “banking for foreigners in Korea” in websites. However, those messages are not updated and less clear about type, time, cost and coverage of the services. Therefore, it is advisable to develop foreign citizen charter. These arrangements is supposed to be helpful not only make easy to access for the financial transactions but also it will establish a long term relation between citizens of different nations with Korea. Eventually, popularity of Korean banks will rise throughout the world.
Like other services, primary concerns of bank clients expect services in proximity in quick and happy way. Some added schemes like providing conditional loans to entrepreneurs, students, sick persons with additional sponsorship/assurance of some Korean institutions or a person. Moreover, tracing out of the potential cluster of foreigners, extension and integration of the services, global ATM facility, and fast track services to those who is in emergency or disable condition will be preferable. Besides, it sounds better if periodical information regarding the deposit, withdrawal and interest condition is made available through SMS or email.
A small unit can better deal with issues related to foreigners. Sophisticated informatics and risk assessment may demand the strategic management approach. Also increasing financial complication in the global, regional as well as national context should be a topic for continuous “research and development” in banks. Different unit for this purpose will carry out necessary explorations and suggest to the leadership including management board of the bank.
Fund transfer pricing is also important concern for foreigners. Some incentives like easy and cheap cost should be there in order to discourage the informal ways of money transfers like “hawala system,” “Hundi,” practiced by foreigners, mostly workers while sending remittance money. This consideration will help in fiscal condition of home country with increased transfer through Korean banks.
Outreach program in universities, schools, industries and far away rural communities will be added input. The provision of internship job to the foreigners is one of the better options for cross-broader learning and innovation. “Friendship Fair” at least once a year is one another option. In course of time, feedback surveys seeking the satisfaction level and probable reform tips may work better. Regular reform agenda may include grievance handling techniques like putting complain boxes, asking about the views towards the services and so on. Service with smile is always important.
All material for information dissemination should be in English language side by side. We can expect that banks develop different support services reflecting corporate social responsibility (CSR) including communication, transparency and national treatment. It is always better to utilize the beauty of Asian culture, which lies in giving homage to all guests and paying priority and respects to the elder persons.
The globalized economy can become a great adventure where foreign lands and people interact in fascinating ways. Banking system is definitely one way for such interaction. With fast, fair and feeling of attachment (3F) in modern service delivery mechanism, institutions in global community should effectively apply other one F that is “for the foreigners.” For this, banks should prepare service products, information dissemination and problem solving innovative tools to foreigners themselves.
Korea is a land of hope and happiness. Better feelings in foreigners regarding banking service will have deep and long-term consequences. Personnel well trained in English, financial services, state of art technology, hospitality management are true devices for winning the heart of foreigners. The roadmap proposed here will definitely help in many ways to improve the service to non-Korean people living in this peninsula.
Subedi Prasad Netra is an international student at Ajou University.