Chairman Kim Jung-tai of Hana Financial Group said KEB Hana Bank will complete the integration of the electronic systems of the two merged banks in the first half, and its operation will focus on the creation of synergy from the merger in the second half. He made the statement while commemorating the first 100 days of the operation of the newly merged entity. Chairman Kim won the Dasan Gold Award for his achievement in taking over the Korea Exchange Bank in merger with Hana Bank last year.
The new bank is projected to have needed 306.6 billion won to normalize its merger from Sept. 1 to Dec. 31, but the expenses can be recovered with the synergy that the new bank will generate over the next three years.
The most urgent need for the new bank is the integration of the electronic equipment of the two banks. The former Hana Bank has 584 branches and outlets linked to its electronic system and Korea Exchange Bank (KEB) had 349 branches or outlets connected to its electronic facilities. The new bank plans to complete the integration of the electronics systems of the 933 branches and outlets by early June.
The marketing program called The Hana Members, which Hana Financial Group launched in October, is among the bank’s strategies. Customers will accrue benefits by procuring financial services from KEB Hana Bank in such areas as cash withdrawal and others.
Chairman Kim said he plans to strengthen the marketing program by using it as a marketing platform and for communication with customers so that they can benefit from the program, which will be extended to financial deals.
The number of subscribers to the program exceeded 1.5 million in two months from its launch. Next year, localization initiatives at overseas branches and subsidies will be pushed more strongly, especially in China and southeast Asia, with overseas operations being the most profitable for the bank and financial group. Unlike other domestic banks that are mostly engaged in expanding their operations around the world, KEB Hana Bank has been focusing on profitmaking through its financial products, such as installment financing and other consumer financing.
Kim said he would try to create segregated strategies with other financial groups by expanding the bases for the financial services for its customers, especially in China and Indonesia.
He will also focus on the normal operation of the BNB Hana Bank, which the group took over from a number of Korean-American owners of the financial firm in the U.S.
The group has also been successfully engaged in selling the IQ Bank, a mobile banking facility, in advanced financial market countries like Canada under its Fintech strategy, with Kim thinking that Fintech won’t be a great threat to the bank.
He said Hana Financial has already developed “non-facing” financial deals with technology that recognizes human body parts like the face to be used in Fintech and the group plans to introduce its non-face financial system in China and Indonesia, countries where its operation networks are already set up.
The group also will train corporate customers in Fintech at the “Fintch 1 Q Lab” to be set up at the Grand Seoul Outlet, which was designed to provide support to corporate customers.
The share price of Hana Financial fell 25 percent following the merger of KEB and Hana Bank from 32,550 won per share on April 24 to 24,200 won per share on Dec. 21.
The new bank has some way to go before fully completing the merger, as some problems cropped up after the opening of the new bank on Sept. 1. Particularly, the sale of Hana Members to each of the bank’s staff didn’t go very well inside the bank, because it was considered to be no help to the chemical merger of the two banks. The financial community feels that it would take about three years for the merged bank to operate as one entity.
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