Shinhan Financial Group said recently that it is strengthening its digital business department to take care of the escalating demand for “smart” financial services.
Earlier this year, the financial group launched the Digital Strategy Team, which plays the role of a control tower, directing its affiliates' digital businesses.
"The new team holds the key in the group's digital finance sector," said an official for Shinhan. "All of our affiliates have also strengthened their organizations’ ability to deal with digital businesses."
The digitalization move comes amid group chairman Han Dong-woo vowing to lead the company's digital finance business, providing safe and convenient services for customers.
Observers said that Sunny Bank, Shinhan Bank's smartphone application, is a good example showing the group's success in digital first strategy. Customers can open their accounts, buy foreign currencies, borrow money and get remittance services through the application, without visiting the bank's brick-and-mortar branches.
In particular, the lender identifies customers with their fingerprint, further securing their financial transactions. Thanks to convenient and safe services, Sunny has attracted hundreds of thousands of customers.
Encouraged by the successful release of the application in the domestic market, Shinhan introduced it in Vietnam in December. According to the lender, almost 20,000 customers are using the service there, gaining popularity in the country.
"About 90 percent of the customers are in their 20s and 30s," said a Shinhan official. "We expect Sunny Bank to play a leading role in expanding our presence in Vietnam."
In addition, Shinhan is gearing up to begin a new asset management model, using a robo-advisor, which offers automated portfolio management advice.
Shinhan Financial Group said recently that it posted a 13.3 percent on-year jump in net profit in the first half on a stable increase in profits in its banking unit and improved performance in non-banking units.
Net profit for the six months ending June 30 came to 1.454 trillion won (US$1.2 billion), up 170.7 billion from a year earlier, Shinhan Financial said in a regulatory filing.
Shinhan Financial said its banking unit saw a stable increase in profits, and the performance in non-banking units has improved. The group said its loan-loss provisions in the first half edged down 2.6 percent from a year earlier, despite restructuring in the country's shipping lines and shipyards.
Flagship Shinhan Bank's net profit jumped 29.9 percent on-year to 1.026 trillion won in the first half.
Shinhan Card, the group's credit card unit, posted a net profit of 355.2 billion won, up 1 percent from the same period last year.
The group said its loan-loss provisions in the first half edged down 2.6 percent from a year earlier, despite restructuring in the country's shipping lines and shipyards.
Shinhan Financial Group Co., Ltd. provides various financial products and services in South Korea and internationally.
The company’s retail banking services include mortgage and home equity, and retail lending products; demand, savings and fixed deposit-taking; checking accounts, and electronic banking and automatic teller machine (ATM) services; bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services.
It also provides corporate banking services, such as investment banking, real estate financing, overseas real estate project financing, development project financing, infrastructure financing, structured financing, equity investments/venture investments, mergers and acquisitions consulting, and securitization; derivative services consisting of securities and derivative products, and foreign exchange trading; working capital loans and facilities loans; and treasury service.
An ad for Shinhan Bank’s Sunny Bank, a mobile bank.
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