By Kwon Mee-yoo
KDB Daewoo Securities is putting more efforts into retail services to better cope with the fast-changing financial market.
The number of individual investors is on a constant increase and the amount of stock assets owned by individuals has jumped six-fold over the past decade. According to the Korea Securities Depository, 98.9 percent of stock owners are individuals and the average investor owns 12,116 shares.
However, stock trading firms' management services toward individuals remains unchanged, despite the shift in the financial needs of customers.
KDB Daewoo Securities, the leading stock trading company in Korea, has revamped its retail services to accommodate the latest individual customer’s needs.
"We knew such a reform might result in regression in figures but we carried forward the project to innovate retail services for a sustainable development for customers," company spokesman Chwa Gyoung-suk said.
The brokerage firm promotes a multi-faceted reform in retail services.
KDB Daewoo has restructured its occupation system to provide a one-stop service to customers. Previously, the company was divided into investment management and wealth management specialists but has integrated them to private bankers, emphasizing relationship building with clients. Now customers can receive all services regarding stocks, bonds, equity linked securities (ELS), funds and wrap accounts from a private banker.
The securities company also reviewed all touch points and revamped its customer management process.
It itemized the process by the characteristics of the customer and situation and the systemized process provides accurate information faster.
"Providing investment news is one of the core services of KDB Daewoo Securities and we convey the information customized to each client’s level," the spokesman said.
The company has diversified customer channels according to customer segmentation. As more individual stock traders are going online, KDB Daewoo has opened an investment consulting center only for online or small investors and expanded educational programs for them.
The brokerage firm has reformed its employee evaluation system as well. Previously, securities companies were known for appraising staff based on profits they make, but KDB Daewoo has changed this to reflect how they strengthen relationships with customers. The new system motivates communication with customers and providing customized consulting corresponding to the client, which would result in asset growth. It has also renewed training programs to foster experts in private banking.
The firm’s effort paid off last year. The brokerage attracted some 4 trillion won of private finance in 2011 despite bearish conditions both internally and externally.
Its employees accounted for 60 percent of the successful candidates for Associate Financial Planner Korea (AFPK) and Certified Financial Planner (CFP) certification in Korea in 2011.
It also saw growth in financial instrument sales, especially those designed by KDB Daewoo such as Folione, ELS/derivative-linked securities (DLS) and bancassurance products.
Along with the improved earnings in the brokerage section, KDB Daewoo's brokerage and wealth management department seeks balanced growth.
The company is putting emphasis on establishing innovation in retail service this year.
"We will make good use of research, financial instruments, private banking consulting and competence of branches to provide the best, one-stop financial services for customers," Chwa said. "We also strive to be distinguished among competitors by creating synergy with other establishments in KDB Financial Group."
The brokerage firm will continue to reinforce private banking training programs for all staff and create specialist teams in each field including retirement consulting, law, tax and real estate.
"We will also develop more diverse financial instruments based on segmented customer needs," the spokesman said.
The company will further cooperate with its parent company KDB Financial Group by comprehending the needs of customers and providing consulting solutions for them.