Jin Ok-dong, president of Shinhan Bank, explains the “Win-Win Growth Evaluation System” at the 1st Quarterly Executive and General Manager Workshop held at the headquarters of Shinhan Bank in Jung-gu, Seoul on Jan. 2.

Shinhan Bank announced on Jan. 21 that it will introduce the Investment Product Sales Suspension System, which regulates the sale of investment products at its branches with low “mystery shopping” scores.

The bank introduced the first such product among Seoul-based commercial banks to further strengthen the protection of customers who use investment products such as funds and equity-linked trusts (ELTs), and emphasize the importance of observing investment product sales procedures to employees.

Jin Ok-dong, president of Shinhan Bank, redesigned the overall branch evaluation system from customers’ points of view by introducing the “Value Up Together Evaluation” System, a new performance evaluation system.

In early January, the lender set up the Consumer Protection Group, which will serve as a control tower in protecting customers and since then, has been strengthening customer support.

Shinhan Bank introduced the Investment Product Sales Suspension System after judging that it was more important to protect customers and provide sufficient and accurate information to customers, while following sales procedures with a focus on customer protection rather than selling products.

The Investment Product Sales Suspension System is made up of three stages. The first stage is to select poorly performing branches by implementing “mystery shopping” for all branches.

Then, mystery shoppers check poorly performing branches for a second time. Branches which scored low in the second mystery shopping test are finally selected as branches with the suspension of investment product sales. 

The branches with the suspension of investment product sales cannot sell investment products such as funds and ELTs for one month. Employees in charge of sales of investment products at the branches should receive education and training about investment product sales procedures and product information.

Before the introduction of the system, Shinhan Bank carried out its own mystery shopping on investment product sales to prepare specific improvement plans for branches with poor results, while implementing education and training programs on its own.

The bank toughened the relevant regulations a great deal by introducing the Investment Product Sales Suspension System.

Shinhan Bank plans to conduct the first mystery shopping in February after announcing the introduction of the system to branches nationwide in January.

Afterwards, the lender will select branches for the second implementation mystery shoppers, conduct the second round of mystery shopping at the branches in March, and select branches with the suspension of investment product sales based on the results of the second mystery shopping in March.

Shinhan Bank also drew up a plan to support its sales force while introducing the system.

The bank plans will deliver online video lectures on mystery shopping and provide lesson plans for all employees and create an environment where employees at windows can strengthen their related business capabilities such as continuously creating and distributing business reference materials in February of this year.

In addition, the company plans to put in place a customer-centered sales system by introducing a sales process monitoring system that utilizes an artificial intelligence (AI) system in the first half of this year.

“We have implemented this system to strengthen customer protection related to sales of investment products,” a Shinhan Bank official said. “We will make steady efforts through various ways to become a leading bank in customer-oriented financial services.”

A panoramic view of the headquarters building of Shinhan Bank in Jung-gu. (Photos: Shinhan Bank)