Shinhan Card Saved 100 Billion KRW Last Year Through Digital Transformation

Annual Savings of 100 Billion KRW Through Selection and Execution of 140 Projects

Moon Dong-kwon, Head of Shinhan Card's Management Planning Group (second from the left in the back row), and the employees who carried out the cost reduction tasks are taking a commemorative photo at the awards ceremony held on the 5th.

[Asia Economy Reporter Ki Ha-young] Shinhan Card announced on the 5th that it operated the 'Digital Cost Reduction Incentive System,' carrying out a total of 140 strategic cost reduction tasks last year and achieving approximately 100 billion KRW in cost savings.

The Digital Cost Reduction Incentive System is an internal operational system where each headquarters or department directly derives and executes strategic tasks every year to continuously promote cost efficiency. Outstanding tasks are selected by comprehensively considering actual financial performance creation, originality, cost reduction scale, and implementation difficulty.

During the past year, a total of 140 tasks were carried out focusing on digital transformation areas such as work automation and online recruitment, as well as cost efficiency in marketing processes and general expenses. Among these, the task of reducing card delivery costs through digital authentication customer verification was selected as the best task by saving about 3.2 billion KRW annually in card delivery costs by registering information consent and verifying customer real names before delivering cards. In addition, a total of nine tasks were selected as excellent tasks, including switching approval messages to digital channels, building and expanding an artificial intelligence (AI) contact center, and promoting digital statement conversion.

On the same day, Shinhan Card held an awards ceremony at its headquarters in Jung-gu, Seoul, where Moon Dong-kwon, Vice President and Head of the Management Planning Group at Shinhan Card, and employees who carried out each task attended to encourage the participants.

Meanwhile, Shinhan Card operates an internal suggestion system called Idea Factory, which aims to improve overall company-wide work areas beyond just digital cost reduction tasks, receiving a total of 1,835 submissions last year. In particular, it operated eight themed proposals to discover ideas on specific topics, receiving 625 submissions, among which 237 were derived through the Innovative Financial Services Contest, evolving into a company-wide innovation platform.

Moon Dong-kwon, Vice President and Head of the Management Planning Group at Shinhan Card, said, "Through the digital internal suggestion system, we are not only activating ideas but also spreading company-wide innovation and strategic and structural cost reductions by building an open organizational culture." He added, "We will continue to further activate the suggestion system to discover new financial business opportunities through digital acceleration and fulfill the social role of finance."

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