NH Bank’s best Fintech products can be described as “Deposits and Installment Savings That Achieve Dreams,” whose holders are entitled to better interest rates based on the number of comments, recommendations, and achieving certain targets as described in the NH Dream Achievements App.
It is an app that manages the target lists, the registration of stories, among others, to present the statuses of “dreams, management, cheering and putting explanations, the subscription of the financial products and providing services,” which can be downloaded at app stores or play stores.
It could be understood better to think of it as a Fintech financial product, with deposits and installment savings, with fun attached.
A person can subscribe for three accounts through Internet banking and smartphone banking. As for getting favorable interest rates, the rate will be reduced by 0.3 percent for those who get the most comments, 0.1 percent cut when recommended by those who know him, 0.15 percent for the installment savings if targeted amounts are achieved with 0.05 percent additionally cut if the targets are achieved earlier than the pledged time.
Installment savings will get the most reduced interest rates. The bank has been trying to develop new financial services to bring an upsurge in the Fintech finance in a diverse way, along with new Fintech financial products.
Earlier this year, the bank introduced the “Watch Banking” which allows one to check the balance and transaction details of a bank account with secret numbers only.
From March, the bank also started providing a number of key services to Fintech business firms with strong technologies, but without business bases at its Fintech Cooperative Centers including financial support, technology consultations, legal consultations and on the registration of the intelligent property rights for technologies.
NH Bank is in the process of opening its NH Fintech Open Platform, a next generation financial channel designed to help Fintech firms to develop revolutionary services for the first time by a bank in Korea.
The bank also is working on a plan to open the Smart Financial Center by the end of this year to facilitate the provision of tailormade financial services in real time to individual customers on the Internet.
President Kim Ju-ha’s plan is to make the bank one that is trusted by customers, where its employees are happy to work, a bank that excels in corporate banking, and one that has deep roots as a profit center for Nonghyup.
During his first year, in 2014, he said he would try to increase non-interest income, solidify the bank’s position as a lender, strengthen its risk management, boost the BIS ratio, expand synergy-creating businesses, and strengthen its credit card operation.
The CEO wanted to attract low-cost deposits to secure stable interest income and provide sound loans from the early stages of his office tenure. He also plans to expand the sale of bancassurance, funds and foreign exchange transactions in order to boost fee-income to expand non-banking sector income, and also expand the securities operation to boost investment income. He has been leading the bank to expand internet banking transactions such as e-financing and smart banking by developing financial products for those facilities and by continuously expanding indirect financial services. He has been focusing on the expansion of non-interest income based on a projection that interest rates on loans would fall further.
His efforts began to show in June of 2014. The bank was leading other banks in a number of key areas including savings for housing contracts, long-term funds for tax-free income, and bancassurance sales, scaring rival banks.
By the end of May, the number of savings accounts for housing contracts numbered over 500,000; the number of tax-free long-term fund accounts exceeded 45,000, the largest among banks; the insurance installation payment for bancassurance amounted to 640 billion won; and fee income totaled around 39.1 billion won, the largest among banks.
Corporate banking is another core sector that the CEO has been focusing on to expand the bank’s income, away from agricultural produce-related firms and more toward general manufacturers and exporters, among others.
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