NH Nonghyup Bank Announces Organizational Restructuring... "Accelerating DT and Expanding Agricultural Finance Role"

Organizational Restructuring to be Implemented in January Next Year

[Asia Economy Reporter Park Sun-mi] NH Nonghyup Bank is implementing an organizational restructuring to accelerate digital transformation (DT) and expand its role in agricultural finance.

On the morning of the 27th, Nonghyup Bank held a board meeting and finalized the organizational restructuring plan for next year. The central headquarters organization will change from 14 divisions (36 departments, 2 bureaus) in one division to 15 divisions (37 departments, 2 bureaus) in one division starting January next year.

The organizational restructuring is carried out with the direction of ▲ accelerating DT such as spreading Agile organizations ▲ establishing customer-centered marketing and responsible management systems ▲ solidifying the bank's identity by expanding the role of agricultural finance ▲ expanding infrastructure and capabilities to secure future revenue bases ▲ strengthening internal control to enhance customer value and rights protection.

The biggest change is that the existing Agricultural and Public Finance Division, which was one division, will be split into two divisions: Agricultural and Green Finance Division and Public Finance Division. The Agricultural Finance Department (Agricultural Finance Consulting Investment Group), the Bad Debt Reserve Fund Department, and the Green Finance Business Group will be placed under the Agricultural and Green Finance Division, while the Public Finance Department (Institutional Business Group) will be under the Public Finance Division.

This is based on the background of establishing an independent agricultural finance division system to enhance business specialization and expertise as a leading bank in agri-food finance. A Smart Farm Comprehensive Fund Team will be newly established in the Agricultural Finance Department, and capabilities to support agricultural finance will be enhanced by strengthening agricultural finance consulting functions.

In particular, through system improvements and strengthening review capabilities, the bank plans to expand support for agricultural policy funds and agri-food corporate finance, and focus on policy proposals and financial support model development through research in the agricultural industry sector. There is also a plan to raise Nonghyup Bank's agri-food corporate loan market share from 28.9% at the end of last year to 40% by 2025. The Green Finance Business Group will oversee ESG (Environmental, Social, and Governance) related tasks in accordance with the government's Green New Deal policy.

Strengthening the Capabilities of the DT Promotion Innovation Team
Speeding Up Digitalization

The detailed organization will be restructured to accelerate Nonghyup Bank's digitalization. To respond to the encroachment of various new payment methods such as local currency and simple pay into the card market, a Card Business Support Department will be newly established. Additionally, amid the competitive atmosphere of digitalization in finance due to big tech's entry into the financial market, the capabilities of Nonghyup Bank's DT Promotion Innovation Team will be strengthened to enhance the driving force and speed of digital transformation.

A smart work system will be introduced to achieve performance in a non-face-to-face work environment, and a flexible working method without restrictions on time and place will be implemented using ICT. The spread of Agile organizations (cells) throughout the bank and the refinement of the operating system will also be carried out.

Considering the urgency of improving the customer journey through digital transformation and the need for collaboration with other departments such as IT, additional cells related to corporate digital finance, institutional fund management, and work efficiency will be newly established in business divisions and departments. Reflecting the emergence of new businesses such as MyData and MyPayment and the intensifying competition to secure customers, the Digital Finance Division will gradually transition from a function-centered to a customer-specific (individual and corporate) marketing system.

An official from Nonghyup Bank explained, "This organizational restructuring is designed for future survival, such as accelerating DT and customer-centered management," adding, "All resources will be efficiently utilized to improve productivity and profitability in the post-COVID-19 era."