Chairman Kim Jung-tae of Hana Financial Group.

Hana Financial Group set sail to set up a new credit analysis system in cooperation with the Fintech Co. focusing on such important factors as consumption patterns, financial conditions and content on Social Network Services (SNS), all of which are fresh information and data.

The financial group is aiming to provide support to Fintech start-ups with creative ideas through its 1Q Lab, while having its affiliates use Fintech applications in their operations, especially those in the service sector.

The financial group signed MOUs with seven promising Fintech startups on the development of business models that can be used by both the group and the startup as part of the “third class” of the 1Q Lab, the group said on July 18.

Hana Capital, one of the group’s affiliates, plans to cooperate with Fintech firms in releasing a credit loan package under the 1Q Seller Loan, to open market borrowers. The borrowers will be selected on the basis of Big Data, including their frequency of SNS use, credit cards, and data from their handphone in order to set an upper limit for loans and interest rates. Usually, borrowers are required to submit documentation to lenders, including a copy of a business license (in the case of corporate borrowers) and up to three days to finalize a credit check. But Hana Capital can complete the loan provision procedures and provide loans within the same day.

The IQ Lab, which opened in the middle of June last year, has offices in the Grand Seoul Building in the Chongro Ward. The lab will have from three to five Fintech startups, all of which will have great potentials. They will work out of the IQ Lab on the 19th floor so that the lab can provide them with close support. The financial group provided a mentoring services to 13 startups thus far.

The Fintech 1Q Lab, as the first to be created by a domestic bank, is expected to become the leader in fostering a win-win ecosystem between banks and Fintech firms.

The first two beneficiaries of the “Fintech 1Q Lab” program, Fintech Co., Ltd. and FiveGT, will move in and commence business operations immediately. Fintech Co., Ltd. carries out big data analysis for credit appraisals, whereas FiveGT provides face recognition security solutions. These companies will receive a comprehensive assistance package that includes project feasibility reviews and legal consultations (one on one mentoring), collaboration with subsidiaries of Hana Financial Group, and technology financing and IT-related cooperation.

Zhin Woong-Seob, governor of the Financial Supervisory Service, said, “I hope collaboration between the financial industry and IT industry, as with the Hana Bank and KEB’s “Fintech 1Q Lab,” leads to significant contributions to the growth of the Fintech sector, and going forward, the financial supervisory authority will consider adding a ‘Support for the Fintech Sector’ category to its assessment of innovation regarding a bank’s managerial strength. This would encourage banks to support the Fintech sector and promote collaboration between Fintech companies, financial companies, and supervisory authorities.”

On Dec. 2, KEB Hana Bank announced that it was named Bank of the Year in the Asia-Pacific and Bank of the Year in Korea for 2015 at an awards ceremony hosted by The Banker, a world-renowned financial magazine, in London. 

The Bank of the Year Awards are significant in that KEB Hana Bank was the first Korean bank to receive the honor in the Asia-Pacific, winning it for a second consecutive year.

On June 2, 2015, top officials of Hana Bank and Korea Exchange Bank cut the tapes to open “Fintech 1Q Lab” at the head office of Hana Bank. Zhin Woong-Seob, governor of the Financial Supervisory Service was present at the ceremony.(Photos: KEB Hana Bank)