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| "Untact" marketing is on the rise in Korea amid COVID-19 crisis, and securities companies are no exception in employing them in their businesses. / Gettyimagesbank |
By Anna J. Park
One of the high-trending buzzwords in Korea these days is "untact" ― a new term coined by combining English language elements; prefix "un," which expresses the opposite state of an adjective that it precedes and "tact" borrowed from the word "contact."
This neologistic Konglish refers to situations which avoid face-to-face direct contact between people. So-called "untact marketing," "untact tech" or "untact industry" have begun to appear in response to marketing strategies, technologies or industries that require no personal contact to execute.
The non-face-to-face trend has been gaining foothold in Korea in recent years, but more so now as social distancing has become a new norm in the nation to prevent further spread of COVID-19.
The untact trend is especially well observed in everyday activities. More and more people are encouraged to work from home, and they also prefer online shopping and food deliveries, while refraining from visiting where a large number of masses gather, whether it be shopping malls or restaurants. Shareholders meetings are conducted online, and artists perform via online platforms.
Against this backdrop, it is a natural consequence that Korea's securities companies, which traditionally require face-to-face meetings between clients and brokerage employees, are turning themselves more to the new trend that erases the necessity of making actual human contacts in their businesses.
From opening a securities account to receiving direct investment consultation through an online platform, there are various modes of untact businesses that many brokerage houses in Korea are currently undertaking to further reach out to clients, without meeting them in person.
Recruiting new clients through online platforms
One of the most prevalent untact business strategies conducted by securities firms is recruiting new clients through online platforms. A local outlet has recently reported that more than a dozen securities firms in Korea saw a rapid increase rate in the number of new clients who opened their accounts online. On average, the monthly increase rate of these kind of account registrations during the first quarter of this year stood at 32.9 percent, up from 20.52 percent logged at the last quarter of 2019.
Specifically, the number of new clients who opened accounts online at NH Investment & Securities this year has increased by five times from the end of last year. This past month alone, more than 225,000 clients chose to open accounts themselves through the online platform, without visiting a local branch.
Samsung Securities also saw more than 100,000 new clients flocked through online platforms during the past four weeks. Contrary to general perception that people aged in their 20s or 30s would comprise the majority, an official from Samsung Securities said that those who newly opened their accounts online has shown various age groups evenly spread, from 20s to 50s.
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| Analyst Seo Jung-hoon shares investment information with clients through a video message. / Courtesy of Samsung Securities |
Digital wealth management counseling
Providing investment counseling online is another key rising trend among securities firms in Korea. Continuing to speak of the case of Samsung Securities, the brokerage house currently sends out regular video messages to its 50,000 prime clients.
The mobile video messages include various areas of information, from analysts' detailed explanations about the market outlooks amid the current pandemic fear, live broadcasting sessions answering clients' direct questions, to specific instructions on investment products.
"Even when giving out the same informational content, clients sent us more favorable reviews regarding video messages, rather than a full text version, as they are easier to watch and understand," Kim Sang-hoon, retail strategist at the firm, told The Korea Times. "Our firm's ample experiences of creating various video contents serve as the firm's new competitiveness area that other IT-based techfin securities houses cannot easily catch up with," he stressed.
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| Analysts at Kiwoom Securities record a podcast on investment information for clients. / Courtesy of Kiwoom Securities |
Kiwoom Securities is another brokerage house in Korea that boasts a strength in providing various types of broadcast programs, aiming to give clients the latest advice on investment counseling and information about the market.
Since its launch back in 2000, the securities firm is largely run as internet-based without local branches, except its headquarters at Yeouido. Thus it not only has particular expertise in recruiting new clients through online platforms, but also in providing up-to-date investment advice through various programs using online platforms.
Clients can check Kiwoom news that's updated eight times a day on their Home Trading Service (HTS), daily market wrap-ups that are live broadcast every day, diversified YouTube videos for investment novices, and podcast programs, among others.
Based on the wide variety of the content it provides, the firm currently has the biggest number of YouTube subscribers among Korean securities companies, which stood at about 59,000 as of March 25, with a total of 9.52 million accumulative views. Its podcast also has thousands of subscribers with over 4.84 million views so far.
"Due to COVID-19, the stock market's volatility has grown and individual investors are having difficulty in appropriately responding to the fluctuating market," an official from Kiwoom Securities' investment content department told The Korea Times. "The firm aims to strengthen our communication with clients by giving out effective investment information," he added.
AI-based chatbot as real-time advisor
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| Captured image of real-time communication with Daishin Securities' AI-based Chatbot Benjamin / Courtesy of Daishin Securities |
Real-time chatbot services that can meet urgent needs and questions by clients at any time of a day is another untact strategy that securities firms can turn to.
Last April, Daishin Securities introduced its AI-based chatbot named "Benjamin" as the first company in the securities industry in Korea to adopt the chatbot service for clients. The chatbot is available for 24-hour consultations with any clients who send out questions on its Mobile Trading System (MTS) platform. The chatbot was launched after a year-long preparation based on a massive amount of data accumulated through its Voice of Consumer (VOC) system.
The chatbot service has been very successful, and the firm announced at the end of last month that chatbot Benjamin has answered more than a million questions from clients since its launch.
"AI-based Benjamin is developing every day through machine learning technology. We will continue to provide better service through the AI chatbot with which clients can satisfy," an official from Daishin Securities said.
Smartphone apps providing comprehensive financial services
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| Mirae Asset Daewoo has strengthened its mobile apps to include a variety of financial services available for clients at their fingertips. / Courtesy of Mirae Asset Daewoo |
Mirae Asset Daewoo's newly-updated app called "m. ALL" aims to provide a total asset management service. Clients can check their assets deposited at every financial company in Korea, ranging from banks, securities firms, insurances and card companies, as well as cash receipts registered at the National Tax Service, and real-time real estate market prices. AI-based product recommendations to particular needs of clients offer various options from equities, funds, ETFS to pensions.
Another app by the company called "m. Global" offer in-depth information on listed companies in the U.S., China, Hong Kong, Japan, Vietnam and Indonesia, such as research papers and analysis of global competitors. Clients can purchase stocks of some 10 countries online.
"Our firm is pre-emptively responding to the changing tide of the industry by providing new values and digital solutions based on strong IT capabilities," an official from Mirae Asset Daewoo told The Korea Times.
