[New Year's Address] Kim Kwangsoo, Chairman of the Korea Federation of Banks, "We Must Accelerate Digital Transformation"

"Customer Trust is the Foundation of Finance"

[Asia Economy Reporter Park Sun-mi] Kim Kwang-soo, Chairman of the Korea Federation of Banks, emphasized that "the digitalization of the financial industry is an irreversible trend" and that "the speed of digital transformation (DT) must be accelerated." He also highlighted the importance of consumer-centric management, stating that "customer trust is the foundation of the existence of finance."

On the 31st, Chairman Kim stated in his New Year's address, "Digitalization based on new technologies such as artificial intelligence (AI) and big data is evolving more rapidly due to the pandemic, and the boundaries between industries are breaking down due to the entry of big tech companies into the financial sector."

He said, "It is difficult to predict how the financial ecosystem will evolve, but it is clear that the rankings of participants will differ from the present once a new order is established," adding, "Starting from the sober recognition that digitalization is an irreversible trend, we must achieve bold self-innovation, such as providing customized financial services."

He also expressed, "We must actively respond to the era of deglobalization," and stated, "While continuing financial support for small and medium-sized enterprises, small business owners, and key industries, which are the foundation of our economy, we must strengthen proactive risk management such as reserve accumulation to prepare for uncertainties that may arise from the restructuring of the economic and industrial landscape."

He urged the banking sector to take an active stance on the retreat of globalization due to the impact of the novel coronavirus disease (COVID-19), the spread of ESG management focusing on environment, social, and governance as core values, and the alleviation of economic inequality.

He also mentioned the importance of customer trust. He advised that the trust in the financial industry should be enhanced through the spread of consumer-centric management.

Chairman Kim reiterated, "Customer trust is the foundation of finance, and the basis of trust is strong consumer protection," emphasizing, "We must establish systems for consumer-centric financial product manufacturing, sales, and after-sales management, strengthen consumer protection frameworks, and ensure that a consumer-centric culture takes root throughout the organization."

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