NH Bank is set to introduce its “Doctor in Charge System” giving customers the right to select who they want to manage their deposits from the second half this year.
The bank will also focus on customers who are baby boomers, those born between 1955 and 1963. It will also direct attention to small business owners and SMEs, which are part of President Lee Kyung-sob’s management strategy designed to make the bank one of the top three banks in the country by 2020.
The bank sent letters to their “top-tier” customers to explain its Doctor in Charge System to manage individual wealth funds. The letters also included the introduction of a number of staff in the wealth management unit so that the customers may be able to name one of the staff to take charge of their accounts.
CEO Lee was forced to beef up the wealth management of individual funds, as the bank has fallen behind its rivals in wealth management. The top manager wants to build up the department so it catches up with the same units in other rival banks.
NH Bank plans to ultimately expand the personnel in the department to around 1,300, and a list of account managers will be made available to the customers so they can someone to manage their funds.
The initiative shows that the bank plans to train new staff in the wealth management division so they can compete with the financial planners at insurance firms.
The bank is hoping competition between those who are selected by customers to manage their funds and those who aren’t will improve their overall performance. NH Bank thinks that will help bring the bank’s operation up another level and improve performance results.
CEO Lee figures that the bank should find its own unique way to improve its operation so it’s different from rival banks focused on non-face banking transactions through the help of digitalized facilities.
“We ought to take advantage of our banking outlets the largest among the rival banks and get close to the customers physically for direct consultations and services,” Lee emphasized.
The bank will also set out to change its operation system by focusing on the “baby boom” generation as its core customers. To lure them, the bank will set up a number of programs in cooperation with NACF. They include a program to help them find jobs and consultation on their return to farming in the countryside. The corporate banking sector will go through changes. One such program would identify small business firms operating in areas sandwiched between cities and farm towns.
The branches in those areas will have three trained staff to identify small businesses and provide financial services tailored for their needs.
CEO Lee said the bank’s operation had taken a step backwards because of its financial transactions related to big business firms, including shipbuilders. He pledged that from now on the bank will go after small business firms in small cities and rural areas to recover its operation.
All One Bank, which was launched in August last year, has gained popularity, boosted by its convenience, such as registration through other banks’ accounts and “big letter” remittance services for senior citizens, openness through active partnership with fintech firms, and coherence in real life, including travel package and automobile loan products. As of the end of 2016, the number of its subscribers surpassed 460,000.
Meanwhile, NH Nonghyup Financial Group held an opening ceremony for NongHyup Finance Myanmar in Yangon on the 6th last month.
NongHyup Finance Myanmar, the first foreign branch of NH Nonghyup Bank, is located in Yangon, the capital of the country’s economy, as a base and is planning to issue small loans for farmers and low-income workers. It also plans to expand its small loan business to other regions and push into the banking industry in the medium and long term.