[2020 Capital Investment Awards] Hana Financial Investment Focuses on Consumer Protection through Pre- and Post-Investment Risk Management

Hana Financial Investment Wins Top Award for Financial Consumer Protection

Jin-guk Lee, CEO of Hana Financial Investment

[Asia Economy Reporter Eunmo Koo] Hana Financial Investment received the Best Award in the Financial Consumer Protection category. The company was highly evaluated for its thorough pre- and post-management of risks that consumers may face while investing, focusing on consumer protection.

When developing financial products, Hana Financial Investment strengthened procedures by having the Consumer Protection Department conduct a preliminary review twice based on the product proposal at the Product Committee. They checked whether the product proposal included essential information that consumers must understand in an easy-to-comprehend manner, and when the Product Committee voted, if both the head of the Consumer Protection Department and the head of the Risk Management Department opposed, the proposal was rejected, thereby strengthening the decision-making process.

After sales, they also enhanced real-time monitoring to ensure that products were operated according to the product proposal. Since July, they established a Product Audit Team within the Product Development Department to monitor whether sold products are being properly managed, and internally set procedures to immediately notify consumers if any issues arise with the sold products.

Additionally, starting this year, they appointed a Chief Consumer Officer (CCO) to enable strengthened consumer protection activities compared to before, and operated so that financial products cannot be sold if the CCO objects. Furthermore, they assigned weighted scores to consumer protection-related items such as the number of disputes and customer management activities in the performance evaluation criteria (KPI) for product sales staff, and set customer profitability as a new evaluation item.

In October, for the first time in the industry, they held a forum on financial consumer protection to introduce ways to safeguard consumer rights and to guide various newly established protection systems in line with the introduction of the Financial Consumer Protection Act. As the era of non-face-to-face transactions begins, they discussed ways to actively protect customers from increasing forms of financial fraud and to strive for the enhancement of consumer rights.

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