Banks Guard Doors with 'AI Haengwon' Amid Big Tech Attacks

Photo by KB Kookmin Bank Yeouido InsighT branch showing an AI bank teller

"Hello. How can I assist you?" As soon as I entered the entrance of KB Kookmin Bank Yeouido InsighT branch, a female bank clerk greeted me kindly. When I asked her to recommend a savings plan for office workers, she explained various related products in detail. When I asked the friendly clerk her name, she replied, "I am KB Kookmin Bank's Artificial Intelligence (AI) bank clerk."

Promoting AI Bank Clerks

According to the financial sector on the 3rd, major commercial banks are actively developing and applying AI bank clerks. KB Kookmin Bank is enhancing its AI bank clerk service. Through its self-developed finance-specialized language model ‘KB-STA,’ it responds to simple tasks such as loans and funds. After receiving explanations from the AI bank clerk, customers can use intelligent automation machines (STM) that allow reissuance of passbooks and check cards, enabling simple tasks to be completed without counter consultation. KB Kookmin Bank plans to expand this AI bank clerk service to branches nationwide in the future. A KB Kookmin Bank official said, "We plan to introduce an AI financial assistant that can be used regardless of location by further enhancing the service."

Shinhan Bank has also introduced the ‘AI Banker.’ It asks customers about the services they want at actual branches and guides them to consultation counters. Shinhan Bank replaced ticket machines with ‘AI Concierge’ and assigned them to assist security officers. Shinhan Bank is accelerating digital transformation, being the first in the financial sector to showcase the AI Banker at CES, the world's largest electronics exhibition. Currently, Shinhan Bank has applied the AI Banker at four locations: Seosomun Digilog Branch, Hanyang University Digilog Branch, Yeouido Central, and Busan Seomyeon branches, with plans to expand gradually.

NongHyup recently attracted attention by unveiling AI bank clerks in the form of ‘virtual humans,’ a hot topic in the IT industry. NongHyup created AI bank clerks by synthesizing the faces of actual young employees and named them ‘Jeong Ideun’ and ‘Iroun.’ They also plan to assign employee numbers and appointment letters to them and manage them like regular clerks. Woori Bank has signed a business agreement with LG AI Research Institute and is developing AI bank clerks. Although AI bank clerks have not yet been introduced at branches, they are being used for internal training and other purposes.

"Not to Fall Behind Big Tech"

The reason banks are putting their lives on AI bank clerks and digital platform construction is interpreted as a determination not to fall behind big tech companies. Naver, Kakao, Toss, and others are expanding their market share using simple user interfaces (UI) as their weapon. In particular, KakaoBank shocked the banking sector by securing 17.4 million customers without any branches. Unlike traditional banks that operate through branches, big tech companies have a structure where customers can access new products simply by adding them to their apps. Especially, Kakao affiliates can even conduct marketing using ‘KakaoTalk,’ the national messenger with 45 million users.

Ultimately, commercial banks face a situation where it is difficult to compete with big tech unless they reduce their current cost structure, including many personnel and branches. Banks are in the process of downsizing their workforce. Last month alone, 1,817 employees left through voluntary retirement from the four banks: KB Kookmin, Shinhan, Woori, and Hana. Professor Wi Jeong-hyun of Chung-Ang University’s Department of Business Administration said, "Banks feel a tremendous threat due to the emergence of KakaoBank," adding, "Since it is difficult to drastically reduce the number of branches because their main customers are in their 50s, they have devised a desperate measure to lower cost structures through AI bank clerks and others."

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