The Era of Complex Finance... Focus on 'One-Stop' Services Both Online and Offline

Bank Branches Decreasing but Bank-Securities Complex Branches Increasing

[Asia Economy Reporter Park Sun-mi]Seunghyun Kim (40, pseudonym), an office worker who used to manage his spare money through savings and stock investments, recently changed his main securities brokerage to KB, the same group as his main bank. It was convenient because he could buy and sell stocks without installing a separate app on the bank application, and he could also handle securities transactions at the branch. Stock trading was possible through the bank deposit and withdrawal account, and preferential benefits were also provided during public offering subscription.

As customer demand for easy, one-stop asset management increases, the era of integrated banking and securities services, which were previously separate, has arrived. The trend of combining banking and securities services both online and offline to enable 'one-stop' service is actively progressing.

According to the financial sector on the 9th, the number of combined branches offering both banking and securities services at KB Financial Group increased from 70 in 2019 to 80 as of last month. Even amid the atmosphere of consolidating unnecessary bank branches for management efficiency, the number of combined banking and securities branches has increased. This is with the intention of providing comprehensive asset management services. The ‘Apgujeong Flagship PB Center,’ which will open next July targeting ultra-high-net-worth individuals, will also be a combined branch format where banking, securities, tax, real estate, and legal services can be received all in one place.

Club One Hannam

In the case of Hana Financial Group, the number of combined branches increased sharply from 29 in 2019 to 42 last year, and expanded further to 45 this year. Hana Financial also adopted a combined branch format by opening the premium asset management brand Club One in Hannam-dong this year, merging Hana Bank’s Private Banking (PB) Center and Hana Financial Investment’s Wealth Management (WM) Center.

Shinhan and NH Nonghyup Financial currently operate 26 and 11 combined branches, respectively, where both banking and securities services are available. Compared to 2019, the number of general bank branches decreased by 21 and 13, respectively, but the number of combined branches only decreased by one each during the process of consolidating nearby branches. A Shinhan Financial official said, "While the number of bank and securities branches has decreased significantly, the number of combined branches has hardly decreased," adding, "Combined branches are being managed as a priority."

In the financial industry, Woori Financial Group, which currently does not have a securities affiliate, does not have any combined branches yet, but it is expected to quickly increase combined banking and securities branches if it succeeds in mergers and acquisitions (M&A) of a securities company. Like other financial groups, Woori Financial also considers comprehensive asset management services as a future core revenue source.

Not only offline but also online services are shifting toward enabling banking and securities services within a single ‘super application (app).’ At the end of last month, Financial Services Commission Chairman Ko Seung-beom stated at a banking industry meeting, "We will create institutional conditions for a digital universal bank that provides all financial services through one app," so the scope of combined banking and securities services is expected to expand further.

Already, KB Kookmin Bank systematized stock trading through KB Securities’ ‘Easy Stock Trading’ service in the revamped ‘KB Star Banking’ app launched on the 27th of last month. Hana Bank also allows access to securities services without installing a separate app in the updated ‘Hana One Q’ app.

A financial industry official said, "Just as the number of combined branches where customers can handle banking and securities services in one place offline is increasing, the era will come when all services of financial group affiliates such as banking, securities, insurance, and cards can be accessed through a single ‘super app’ online," and predicted, "The scope and targets of combined services will gradually expand."

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