Shinhan seeks 'financial Silk Road' through digital banking

By Nam Hyun-woo

Shinhan Financial Group Chairman Han Dong-woo proclaimed two keywords for this year so that the bank can extend its lead in the industry, the group reported Wednesday.

In a statement, the group said that Han chose “digital finance” and “global” as keywords to help the company consolidate its top position, proven by its 2015 net profit of 2.37 trillion won ― the highest in Korean financial industry for the eighth straight year, and the second year in a row that its net profit surpassed 2 trillion won.

The group underwent a restructuring early this year in order to separate and bolster its digital finance team. According to the group, the nine-man digital strategy team, will serve as a control tower for the group’s related businesses, as well as conducting research.

All the group’s affiliates, including its flagship Shinhan Bank, joined together on March 7 to cooperate with 16 Korean fin-tech companies.

The group said another key phrase in Shinhan’s 2016 strategy is “going global,” which the group sees as absolutely necessary because the domestic economy is mired in low growth with low interest rates. “The group’s future hinges on expanding its business worldwide,” it said in a statement.

The group has been entering the global market for about three decades and it now has 151 branches and incorporated and unincorporated offices in 19 countries.

Beginning this year, the group will concentrate its efforts to build in regions with growth potential, especially in Asia. To accomplish this, Shinhan said it would diversify its ways of market entrance to raise profitability, upgrade its operations systems and improve its acclimatization to local environments.

In March, Shinhan Bank won preliminary permission for a banking license from the Central Bank of Myanmar, the first time for a Korean bank. The group said the bank can begin operating in early 2017.

“Progress cannot be achieved through a one-off effort. It is an outcome of aggregated changes,” said Han. “Shinhan should continue to work on how to deal with the new world brought about by advances in information and communication technology.”