Shinhan Financial Leading Ahead of Universal Bank

[Asia Economy Reporter Song Hwajeong] As the banking sector accelerates the establishment of digital universal banks, Shinhan Financial Group is taking the lead. Shinhan Bank plans to launch an online deposit product brokerage service in the second quarter of next year and intends to release the Shinhan Universal Simple App in the summer.

According to the financial sector on the 13th, Shinhan Bank was the only financial institution included among the nine companies designated by the Financial Services Commission on the 9th as innovative financial services for online deposit product brokerage. The other eight were all fintech companies. As a result, Shinhan Bank will be the first bank to offer an online deposit product brokerage service.

Earlier, the Financial Services Commission announced a pilot operation plan for online deposit product brokerage services at the 2nd Financial Regulatory Innovation Meeting in August, and as a follow-up, on the 9th, it approved the designation of nine companies' online deposit product brokerage services as innovative financial services. The designated companies can compare and recommend deposit and savings products from multiple partnered financial companies to consumers through their platforms. In particular, by linking with MyData, it becomes possible to provide customized product recommendations, including whether preferential interest rates apply, based on consumers' asset analysis. Consumers will be able to easily search for and subscribe to deposit and savings products that meet their desired conditions. The related service is scheduled to launch in the second quarter of next year.

A Shinhan Bank official said, "Until now, customers could search for products on the Shinhan Bank application (app), but to subscribe, they had to enter the respective financial institution's app," adding, "The reason for applying for the innovative financial service this time is to enable subscription directly through the Shinhan Bank app."

In contrast, other banks have yet to announce specific plans regarding deposit product brokerage services. KB Kookmin Bank and Woori Bank have no set plans, and Hana Bank is still reviewing.

Shinhan Financial Group held Shinhan Digital Day on the 9th, coinciding with the financial authorities' announcement of innovative financial service designations, and unveiled its digital strategy, including plans to launch the Universal Simple App next summer. At the event, Shinhan Financial Chairman Cho Yong-byeong stated, "In the big blur era where industry boundaries are lowered and the distinction between online and offline disappears, we will incorporate the group's digital capabilities into the Shinhan Universal Simple App, scheduled for release next summer, to provide various financial services from the customer's perspective." Chairman Cho emphasized that the Shinhan Universal Simple App will enable customers to use desired services seamlessly across sectors such as banking, cards, securities, and insurance from a One-Shinhan perspective.

Earlier, in August, Shinhan promptly responded to government policy changes by, for example, registering MyData software sales as an ancillary business immediately after the financial authorities eased regulations on banks' ancillary businesses to create conditions for advancing to digital universal banks.

Jo Ahae, a researcher at Meritz Securities, said, "Overseas financial companies are actively implementing universal banking services," adding, "Banks can expect to expand their customer base through increased convenience, build group data dams and create new opportunities by utilizing both financial and non-financial data, and achieve strategic cost reduction results."

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