Hana Bank rolls out AI pension investment solution service

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Hana Bank has launched an artificial intelligence (AI) pension investment and withdrawal management service, becoming the first bank in Korea to offer a comprehensive solution focused on the retirement payouts, the lender said Wednesday.

The move coincides with growing concern over how older adults manage pension assets after retirement, as longer life expectancy and market volatility lead to increased risk of funds being depleted too quickly.

The newly introduced service is designed for customers holding individual retirement pensions.

It uses AI to propose portfolio strategies to secure a stable cash flow throughout the withdrawal period while balancing investment returns and risks.

Unlike traditional pension services that emphasize fund increase, the new service focuses on withdrawal services mid-subscription.

The service is built on a goal-based investing framework developed in collaboration with Hana Financial Group’s technology subsidiary, Hana TI.

The system incorporates product recommendations, advanced asset allocation techniques and shorter rebalancing cycles.

It also conducts scenario-based testing to assess how portfolios may perform under different market conditions.

Investment strategies are tailored to each customer based on when, how often and how much they withdraw.

Each customer will be able to have their risk tolerance preset to adjust to changes in market conditions.

The AI system continuously adjusts portfolios to help customers maintain sustainable income streams while responding to changes in financial markets.

Hana Bank initially launched the system to offer face-to-face service at branches in order to help customers with in-person consultations alongside AI-generated recommendations.

However, it broadened access to provide services through Hana One Q, its mobile banking app, as well as its online banking platform.

The digital services are expected to benefit customers who have difficulty visiting physical branches, particularly older clients and those living in remote rural areas.

“The service enables customized asset management, aided by a six-month rebalancing period to reflect market fluctuations,” the bank said. “As life expectancy continues to rise, pension services have become just as important as building retirement savings.”