Banks and Securities Combined Like Jjamjjamyeon... 'One-Stop' Complex Branches Trend (Comprehensive)

Securities Services via Bank Branches and Apps
Stock Trading with Bank Deposit and Withdrawal Accounts
Premium Branches Targeting VVIPs Also Operate as Complex Branches

[Asia Economy Reporter Park Sun-mi] Office worker Kim Seung-hyun (40, pseudonym), who used to manage his spare money through savings and stock investments, recently changed his brokerage firm to KB, an affiliate of 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 bank branch. Stock trading was possible through the bank deposit account, and preferential benefits were also provided during public offering subscriptions.

As customer demand for easy, one-stop asset management increases, the era of integrated services combining previously separate banking and securities operations has arrived. Active integration between banks and securities firms is underway both online and offline to enable 'one-stop' services.

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

For Hana Financial Group, the number of combined branches rose 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 its 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 that offer both banking and securities services. Compared to 2019, the number of regular bank branches decreased by 21 and 13 respectively, but the combined branches only decreased by one each during the consolidation of nearby branches. A Shinhan Financial official said, "While the number of bank and securities branches has significantly decreased, the number of combined branches has hardly declined," adding, "Combined branches are being managed as a priority."

Club One Hannam

Financial Sector to Expand Linkage Targets and Scope Among Banking, Securities, Insurance, and Cards Within 'Apps'

In the financial industry, Woori Financial Group, which currently does not have a securities affiliate and no combined branches, is expected to quickly increase combined bank-securities branches if it succeeds in acquiring a securities firm through mergers and acquisitions (M&A). Like other financial groups, Woori Financial sees comprehensive asset management services as a future core revenue source. Until last year, Woori Financial operated combined branches in partnership with Samsung Securities.

Not only offline but also online services are shifting toward enabling banking and securities operations 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," indicating that the scope of combined bank-securities services is expected to expand further.

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

A financial sector official said, "Just as combined branches are increasing offline so that customers do not need to visit banks and securities firms separately, the era will come when all financial group affiliate services including banking, securities, insurance, and cards can be accessed through a single ‘super app’ online," adding, "The scope and targets of combined services will gradually expand."

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