[Financial Digital New Normal] Kim Jeong-tae "People, Space, Infrastructure... Digital Transformation"

③Hana Financial Group

Completing Digital and Global 'Hankyuu' with IT
Integrated Data Center Established in 2017
Human and Physical IT Infrastructure in One Place
Blockchain-Based Platform GLN
Breaking Through Overseas Expansion Blocked by COVID-19

Kim Jung-tae, Chairman of Hana Financial Group

[Asia Economy Reporter Kim Min-young] On October 30, 2018, two years ago, at the Hana Financial Group Integrated Data Center in Cheongna, Incheon, Hana Financial Group held its ‘Digital Vision Declaration Ceremony.’ At the event, Kim Jung-tae, Chairman of Hana Financial Group, announced a blueprint to “transform into a customer-centric data-based information company.” He emphasized, “We must change the space, people, and ways of working,” and urged, “All employees must become digital talents centered around the Cheongna Dream Town, which will be the cornerstone for achieving the digital vision, and move with the agility and challenge spirit of a startup.”

The integrated data center was completed in June 2017 and is the first case in the domestic financial sector to consolidate all human and physical IT infrastructure within the group in one location.

Now, more than two years after this declaration, Hana Financial Group is being recognized for simultaneously raising the overall IT capabilities of the group and reducing costs. It is also seeing significant synergy effects through flexible and efficient data management and utilization. The group has shed the outer shell of a bank and securities company and transformed into a genuine information company that fuses finance and IT.

Developing All Employees into Digital Talents

In June, Hana Financial Group established a Digital Transformation (DT) University in Cheongna. This is a digital customized education platform that offers both online and offline courses to strengthen digital capabilities across the entire group.

Digital talents are defined in three fields: digital business experts, digital IT experts, and innovative technology experts. The goal is for employees to become specialized talents in at least one of these fields.

In the first introductory stage, common competencies such as cultivating a digital mindset and understanding the latest trends are built. The second advanced stage covers programming, data analysis, big data, artificial intelligence (AI), and more. The third expert stage involves forming teams to apply new technologies and develop new services, conducting hackathons that generate ideas and produce results over extended periods.

First Techfin Industry-Academia Cooperation Center in Korea

Additionally, the group has embarked on implanting digital DNA through industry-academia cooperation. In August, it signed an agreement to establish the ‘Techfin (Technology + Finance) Industry-Academia Cooperation Center’ with KAIST and POSTECH, the first of its kind in the domestic financial sector. The center will share expertise between academia and industry and promote activities such as research and development (R&D) and support for technology startup creation. The Techfin Industry-Academia Cooperation Center will serve as an ‘outpost’ actively advancing the digital new deal. Chairman Kim stated, “In the current situation where uncertainty has deepened due to the COVID-19 crisis, as part of innovation to overcome the waves of change, we will create an experimental ground where the country’s top science and technology universities and talents can freely challenge themselves and where failure is tolerated.”

Kim Jung-tae, Chairman of Hana Financial Group

This all-in digital strategy is quickly showing results. The completely revamped Hana Bank mobile application ‘Hana OneQ 2.0’ captured the hearts of financial consumers immediately after its launch. It features a convenient user environment and security system, and allows all financial transactions to be completed with a single app. Without installing additional apps, users can access services from affiliated companies such as card, securities, capital, savings banks, life and non-life insurance.

Also, the ‘Hana OneQ Credit Loan,’ which opened a new era of mobile loans, has established itself as an optimized untact financial product that allows loans with just one authentication without submitting documents. It became so popular that it coined the new term ‘3-minute cup noodle loan.’ This product achieved a performance of 2.4 trillion KRW within six months of its launch.

Hana Members, which can be used like cash at online and offline partner stores through point accumulation, has reached 16.8 million subscribers. The integrated point system, Hana Money service, was designated as an innovative financial service last July and launched as the ‘Hana Money Check Card,’ allowing customers using Hana Money to use accumulated points at card merchants without restrictions. The cumulative transaction amount reached 1.6 trillion KRW in Hana Money as of the end of last month.

Overseas Expansion Also Riding on Digital

Hana Financial Group is also breaking through the blocked path of overseas expansion caused by COVID-19 through digital means. It is actively promoting overseas expansion through the blockchain-based payment platform, Global Loyalty Network (GLN). This service, Chairman Kim’s ambitious project, is an innovative case that no one has attempted before, allowing points to be used directly abroad without converting them into foreign currency. The payment service was first introduced in Taiwan in April last year and is now available in 14 countries including Japan, Hong Kong, Thailand, and Vietnam.

Hana Financial Group has the largest overseas network among domestic financial companies. It has 216 networks in 24 countries, including 29 in China, 10 in Canada, and 8 in the United States. Of course, this is partly thanks to the acquisition of the former Korea Exchange Bank, which had many overseas branches, but now the number is not the most important factor. A financial sector official explained, “Although overseas expansion is limited due to COVID-19, Hana Financial Group’s network through digital technology continues to expand overseas.”

This content was produced with the assistance of AI translation services.