NH Nonghyup Bank Organizational Restructuring... Strengthening Roles in Digital and Agricultural Finance (Comprehensive)

Effective from January next year

[Asia Economy Reporter Park Sun-mi] NH Nonghyup Bank is implementing an organizational restructuring to accelerate digital transformation (DT) and expand its role in agricultural finance.

On the morning of the 27th, Nonghyup Bank held a board meeting and finalized the organizational restructuring plan for next year. The central headquarters' organizational chart will change from 14 divisions (36 departments, 2 bureaus) and 1 division branch to 15 divisions (37 departments, 2 bureaus) and 1 division branch starting January next year.

The organizational restructuring is aimed at ▲ accelerating DT through the spread of Agile organizations ▲ establishing customer-centric marketing and responsible management systems ▲ solidifying the bank's identity by expanding its role in agricultural finance ▲ expanding infrastructure and capabilities to secure future revenue bases ▲ strengthening internal controls to enhance customer value and protect rights and interests.

The most significant change is the division of the existing single Agricultural and Public Finance Division into two separate divisions: the Agricultural and Green Finance Division and the Public Finance Division. The Agricultural Finance Department (Agricultural Finance Consulting Investment Team), the Bad Debt Reserve Fund Department, and the Green Finance Business Group will be placed under the Agricultural and Green Finance Division, while the Public Finance Department (Institutional Business Team) will be under the Public Finance Division.

This is based on the establishment of an independent agricultural finance division system to enhance business specialization and expertise as a leading bank in agri-food finance. A Smart Farm Comprehensive Fund Team will be newly established within the Agricultural Finance Department, and capabilities to support agricultural finance will be strengthened, including enhancing agricultural finance consulting functions.

In particular, by improving systems and strengthening review capabilities, the bank plans to expand support for agricultural policy funds and agri-food corporate finance, focusing on policy proposals and financial support model development through research in the agricultural industry sector. The bank also plans to increase its market share of agri-food corporate loans from 28.9% at the end of last year to 40% by 2025. The Green Finance Business Group will oversee ESG (Environmental, Social, and Governance) related tasks in line with the government's Green New Deal policy.

Strengthening the DT Promotion Innovation Team's Capabilities
Accelerating Digitalization

The detailed organization will be restructured to accelerate Nonghyup Bank's digitalization.

To respond to the encroachment of various new payment methods such as local currency and simple pay into the card market, a Card Business Support Department will be newly established. Additionally, amid the competitive atmosphere of digitalization in finance driven by big tech's entry into the financial market, the capabilities of Nonghyup Bank's DT Promotion Innovation Team will be strengthened to enhance the momentum and speed of digital transformation.

A smart work system will be introduced to achieve performance in a non-face-to-face work environment, and flexible working methods without restrictions on time and place will be implemented using ICT.

The spread of Agile organizations (cells) throughout the bank and the refinement of the operating system will also be carried out.

Considering the urgency of improving the customer journey through digital transformation and the need for collaboration with other departments such as IT, additional cells related to corporate digital finance, institutional fund management, and work efficiency will be newly established in business divisions and departments.

Reflecting the emergence of new businesses such as MyData and MyPayment and the intensifying competition to secure customers, the Digital Finance Division will gradually transition from a function-centered to a customer-specific (individual and corporate) marketing system. In this process, a Corporate Digital Finance Cell will also be newly established to secure competitiveness in digital platforms for corporate customers and improve non-face-to-face services. Efforts will also be made to secure channel competitiveness through redesigning corporate smart banking and building an integrated platform.

Furthermore, to respond to the financial authorities' strengthened supervision due to consumer protection issues, the status and expertise of the Chief Consumer Officer (CCO) will be enhanced. Reflecting the strengthened supervision and expanded scope of work, the current system where department heads concurrently serve as CCOs will be abolished, and the position will be operated by an executive vice president (acting).

An official from Nonghyup Bank explained, "This organizational restructuring is designed for future survival through accelerating DT and customer-centric management," adding, "All resources will be efficiently utilized to improve productivity and profitability in the post-COVID-19 era."

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