President Kwon Seon-joo of the Industrial Bank of Korea.

President Kwon Seon-joo of the Industrial Bank of Korea (IBK) said in her New Year’s statement issued on Jan. 4 that the bank will do its best to strenuously safeguard its leading position in the SME financial market in Korea.  

She said the bank will steadfastly cope with any changes in the financial industry by introducing the “i-One Bank,” an integrated platform, the completion of the Fintech Dream Solution system by treating the changes as opportunities.

She said the financial industry is faced with a “borderless and boundless” situation in its members’ operations with borders dividing the financial sectors being removed quickly, such changes that the industry didn’t foresee even three years ago while interest rates are still low. Financial institutions, and banks in particular, will have to struggle with the burden of low economic growth this year, as they had last year.

“We have to be in a leading position in coping with those changes, not be a follower, to win as the existing paradigm is going through changes to be more customer-centered. It is difficult to change, but not changing would be even worse,” the IBK CEO said. 

She said she would like to urge all officers and staff of the bank to pay special attention to such words as “Leading Reform,” “Responding to Changes” and “Solid Internal Growth” as they attempt to navigate the bank through rough waters this year.

“You have to be awake all the time and keep your sights wide open to find out where the changes are being made around you to be ready for a limitless competition armed with reforms,” the IBK CEO said.

A number of big changes are in store for this year, including the emergence of an Internet bank. Customers are increasingly on the lookout for a non-physical bank, one they don’t have to travel to. It is estimates that the i-ONE Bank could replace around 60 physical branches in conducting banking businesses. Around 40 percent of its business would involve non-counter-channel financial products, making i-ONE Bank a leading bank this year.

Fintech can either be a supporter or competitor, depending on its users. “We have to use Fintech in analyzing Big Data in credit evaluation and in mobile wealth management in cooperation with Fintech enterprises and find new businesses to supplement the weak areas of the bank’s operation,” the bank said. 

“Responding to change” is the second most important strategy for the bank this year. “We have to examine carefully the new systems, the changes in the customers demands and the financial regulations in preparing ourselves to discharge the bank’s businesses this year with competition and reform at the center of the financial reform this year,” the bank said. 

“We should expect many financial regulations will be eased, along with many changes in the systems and the introduction of new financial services.” 

Customers can move their accounts to any bank from the end of last year and this year. The ISA, a non-taxable individual asset management account, which can contain a number of financial products on one plate, will be introduced. The products similar to the ISA will boost competition among banks as customers can get the account at only one bank, which will also strengthen the asset management capacity.

Financial policies will also change direction, from supporting the survival of financial institutions, to growth. The credit guarantee system and policy loans to SMEs by IBK will also see a big change. From next year, banks will be responsible for credit analyses for SMEs, in accordance with the portfolio consignment guarantee system.

President Kwon also said that safeguarding the health of the Industrial Bank of Korea is the foremost aim this year. “We should continue to attract sound deposits and yet careful about the interest margins to make sure that the earnings will be higher,” she said.

President Kwon waves a flag of the i-ONE Bank at a recent launching ceremony for the online bank at the IBK office in Seoul.(Photos:IBK)