By Yoon Ja-young
Staff reporter
KB Kookmin Bank is unarguably the leading bank in the country. Its total asset stands at 273.8 trillion won ($265 billion), and it is serving 26.5 million customers through 1,195 branches nationwide, meaning more than half of all Koreans are its customers.
KB has been at the top for the past decade despite turbulence in the market and successfully survived the global financial crisis thanks to thorough risk management.
Its bank for international settlement (BIS) ratio, which measures the bank's financial health, stands at 13.85 percent, the highest in the country, and it delinquency ratio is a low 0.89 percent thanks to preemptive risk management.
This stable financial and business structure has given the bank good credit ratings. Moody's recently raised its rating on the bank to "A1" from "A2," and S&P upgraded its outlook on the bank to stable from negative, rating it "A."
Fitch, another global credit rating agency, rates KB at "A+." KB is the only bank in the country that is rated equal to the country's sovereign ratings by the three major rating agencies.
Since the inauguration of KB CEO Kang Chung-won, the bank has innovated its corporate culture under the slogan "International Best Practice."
The bank ranked at top for four consecutive years in the NCSI (national customer satisfaction index) by the Korea Productivity Center, and topped for three consecutive years in the KCSI (Korean customer satisfaction index) by the Korea Management Association Consulting.
"If KB fails to attract customers with more convenient and effective services, it might lose its position as the leading bank," Kang said at his inauguration, setting customer satisfaction as a core target.
KB is going a step further in customer satisfaction. It is providing customers with not only convenience but also "success," becoming the customers' best partner on the road to success by helping with professional financial knowledge.
KB introduced innovative products and services for customers. It was the first bank in the world to start mobile banking, and led innovation in the industry by selling funds and bancassurance products. The launch of such products also created a synergetic effect within KB Financial Group.
KB had many hit financial products. "KB Star*t" bank accounts for adolescents, launched in January 2008, saw over 1 million accounts opened in only one year. Credit cards that return mileage points to customers' hometowns were also selected as hit items.
A recent survey by Incruit, a job market information portal, showed college students picking KB, along with Samsung Electronics, as the place they most desire to work. They were especially attracted by the bank's leading position in the industry.
KB was also selected as the "top workplace in the country" last year by Hewitt Associates, a global personnel management consultancy. The consulting firm said KB employees were deeply engaged in their performances compared with others.
KB became the best workplace by investing in human resources. "The bank provides the best working condition for workers, and the employees, who are satisfied with this, are returning customers with satisfaction and shareholders with more value," a KB spokesman said.
"The world-class workplace where the best people want to work" is the vision that KB targets through human resources investment.
The bank set up a training road map (TRM) for all employees to improve their career capability and leadership skills. Most notable is that the bank expanded TRM to online tellers who are non-regular workers. The TRM was previously limited to regular workers like in other banks, but the bank expanded the program to non-regular workers and heads of branches, completing its training programs for all workers.
KB also strengthened a training program for rookies. It introduced a self-directed learning, on-the-job training (SDL-OJT) program, where rookies learn about their work at branches and get feedback from coaches and branch heads. They say that this customized training program helps them quickly get accustomed to their work.
KB has continued system upgrade at workplaces. It was the first local financial company to divide sales from operation, enhancing effectiveness and providing customers with professional services. The bank also upgraded a credit evaluating system, which is crucial to maintain asset soundness and improve profitability.
Its customer relationship management (CRM) system linking customer information with geographical information was spotlighted in the industry for effective target marketing.
As the leading bank, KB has actively engaged in social contribution programs, both throughout the country and abroad.
The bank was the first in the local financial industry to set up a team that is fully in charge of social contribution, and also expanded volunteering program.
In March, it sponsored "Eco-Tree Campaign," an ecology restoration campaign to plant trees.
The campaign, a joint project by army, private businesses and the Ministry of Environment, started last year to raise people's consciousness over global warming and to inform them why it is crucial to have an eco-friendly lifestyle.
KB CEO Kang Chung-won participated in the tree planting campaign with around 260 people including environment minister Lee Maan-ee and Army Chief of Staff Gen. Han Min-koo. The number of trees planted in the campaign totaled 13,000.