Shinhan Financial Group has been taking a number of measures to be a leader in financial digitalization among its rival financial groups. Included in the important measures are an organizational shake up. The group named the Chief Digital Officer to take charge of all issues related to the financial digitalization in the group, requiring all of the group’s affiliates to send the heads of its digitalization units to the group’s Digital Council to discuss and get the approval of the digitalization matters for their affiliates.
The group also launched the CoE to take charge of the development of the six major digital technologies such as AI, Blockchain, Open Innovation, Cloud, Digital X, among others, which will be handled by some 70 digital officers in each of the affiliates of the group. The group’s Shinhan Future System was launched in 2015 to provide support to new startups with Fintech as their major technology. So far 61 new startups have been born with the help of the program. The group provided some 6.3 billion won in support loans to the new startups.
The group also has been doing all it can to mix digital information technologies with business functions, such as distribution. The group decided to sign a cooperative agreement with Paypal to find new business opportunities in the area of payment. The group signed an agreement with LG Electronics on cooperation in a new payment system based on IoT. The group also agreed with Mizuho of Japan to jointly invest in Fintech businesses to develop new business models.
Shinhan Financial Group has always put emphasis on being a healthy corporate citizen as it grew together with local society. Starting with its 2005 CSR report, the first of its kind from a financial company, Shinhan Financial Group has been leading the way for responsible management through establishing CSR strategies, participating in global initiatives, and operating the CSR committee within the board of directors. With the new paradigm in sustainable management, the Shinhan Financial Group is proposing the new ‘2020 CSR Strategies’ in 2017.
With “Responsible growth,” “Social partnerships,” and “Investments for the future” set as ultimate goals, the Shinhan Financial Group is proposing the Six Commitments along with definitive goals and direction to become a world-class financial group
Chairman Cho Yong-byung of Shinhan Financial Group lead the 2020 Smart Project, developed as part of the strategy to achieve the vision of the group becoming Asia’s leading financial group in 2020, an official of the Personnel Dept. said.
He said the roadmap is finalized. Last year, as part of efforts to realize Shinhan’s vision, the company launched Project 2020 to reach the mid-term goal of becoming Asia’s leading financial group by 2020, the company said.
“Consequently, we expanded GIB, Global, and other business divisions, launched Shinhan REITs Management, and built a strong, balanced foundation for growth,” the company said. “We acquired ANZ Vietnams retail division, received approval for a local branch in Mexico, implemented a Country Head system to promote inter-regional cooperation, and more. Through diversified methods of growth and bold innovations to our business model, we expanded our global network to 171 offices in 20 countries, and carried out a swift glocalization process.”
The company also established a Group-wide digital response system and partnered with leading ICT companies in Korea and abroad, including Amazon and LG U+, as well as nonbanking operators like GS Retail to upgrade to Digital Shinhan. In the process, Shinhan made meaningful strides in fostering an innovative business environment.