Social Distancing Level 2... Banks Remain Unaffected Due to Spread of Non-Face-to-Face Services

What is the response status of the banking sector?

[Asia Economy Reporter Park Sun-mi] As the social distancing level in the Seoul metropolitan area was raised to Level 2 starting from the 24th due to the third wave of the novel coronavirus infection (COVID-19), banks hurriedly convened emergency meetings and announced response measures including strengthened quarantine protocols. Since banks have actively expanded non-face-to-face financial services while experiencing the COVID-19 crisis this year, the impact of raising social distancing to Level 2 is expected to be minimal.

According to the financial sector, domestic commercial banks held emergency meetings the day before to prepare response systems following the elevation to social distancing Level 2 and have begun implementing them. Shinhan Bank, which had been operating the 'Shinhan Quarantine Guide Level 2' since the 19th, strengthened its quarantine measures from that day to align with the social distancing Level 2 elevation. Accordingly, after-work social gatherings among employees are completely banned. Eating and drinking in branch meeting rooms and lobbies, as well as providing food and beverages to customers, are prohibited. Each department must also maintain a split work ratio of at least 15%.

Woori Bank is dispersing personnel across eight locations, including the head office, to ensure normal operations even if the head office is closed, and expanded its split work from the previous 20% level to 30% starting that day. At branches, existing measures such as installing transparent partitions, providing hand sanitizers, and temperature checks are maintained, while disinfection of customer touchpoints such as ATM screens, pin pads, and intercoms is being intensified.

Bank Sector Responds with Employee Dispersal and Ban on Gatherings
Branch Operating Hours Not Shortened Yet

NH Nonghyup Bank has notified employees to postpone or cancel all meetings and appointments until further notice. Meetings among employees must utilize non-face-to-face communication tools such as messengers and video conferencing. KB Kookmin Bank plans to continue the quarantine guidelines implemented when social distancing was raised to Level 2.5 before Chuseok. Twenty percent of headquarters staff work from home, 15% work in split shifts, and measures such as banning face-to-face meetings, events, dinners, and gatherings continue.

However, the banking sector decided to postpone the one-hour reduction in branch operating hours implemented at the end of August to focus on quarantine. The industry expects that shortened branch hours will be discussed if social distancing is further raised to Level 2.5.

The decision to strengthen or maintain existing quarantine measures in response to the elevation to social distancing Level 2 indicates that the impact on the banking sector will not be significant. This is due to the fact that banks have already greatly expanded non-face-to-face financial services while experiencing the COVID-19 crisis this year.

Kookmin Bank started the KB Smart Corporate Loan service this week, allowing all corporate customers to process corporate loan transactions through non-face-to-face channels without separate registration amid the spread of COVID-19. Shinhan Bank opened the 'Digitate Branch' at its Seosomun branch on the same day, becoming the first commercial bank to enable customers to remotely conduct business with video consultation specialists through a video consultation window.

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