"Sleeping with the Enemy" for Business Expansion
[Asia Economy Reporter Park Sun-mi] Due to the blurring boundaries in the financial industry, banks that have been keeping internet companies in check have instead chosen bold "cooperation with the enemy" by joining hands with big tech and gaming companies. Although these partners could easily become competitors, banks calculated that if utilized well, they could create synergy in expanding their business areas.
On the 14th, among the five major commercial banks, Shinhan, Hana, and Woori Banks are recognized as actively expanding their business partnerships with internet companies. Shinhan Bank plans to allow customers to easily search and apply for Shinhan Bank's jeonse loan products on Naver Real Estate starting mid-month.
Until now, Shinhan Bank customers had to separately check their individual loan limits and interest rates and apply for loans at Shinhan Bank after searching for jeonse listings on Naver Real Estate, the nation's top real estate information platform, which was inconvenient. The "cooperation" between Shinhan Bank and Naver Real Estate is expected to benefit both Naver's entry into the real estate industry and Shinhan Bank's customer base expansion. Separately, Shinhan Bank is also expanding its collaboration with Naver Pay by running an event until the 30th of next month, offering points to customers who apply for Shinhan SOL jeonse loans through Naver Pay.
Woori Bank has also chosen to "cooperate" with big tech. Woori Bank is partnering with Naver Financial to launch a credit loan product exclusively for Naver Smart Store business owners in the second half of this year. In addition to launching dedicated loan products for small business owners selling products on Naver, they plan to expand financial support cooperation projects for small business owners by utilizing non-financial data and broadening loan eligibility. Previously, Woori Bank, Naver, and Yonsei University signed a tripartite business agreement to attempt building a "Smart Campus" that combines cutting-edge IT and finance.
About ten commercial banks, including Shinhan, Woori, and Hana Banks, are collaborating with Kakao Pay or Toss on loan comparison services. This service allows users to compare loan products, loan limits, and interest rates from multiple financial companies at a glance.
Gaming Companies Securing the MZ Generation Are Also Important Partners
Collaboration with internet gaming companies is also expanding.
Hana Bank signed a strategic business agreement with game company Netmarble to provide innovative digital financial services targeting the MZ generation, the main users of games, with new asset management services planned for the second half of this year. Hana Bank and Netmarble will also conduct various joint marketing activities encompassing finance and gaming. Shinhan Bank is cooperating with Nexon, a game company with a large MZ generation customer base. They plan to discover new business models based on artificial intelligence (AI) and data, promote payment businesses based on financial infrastructure, and pursue joint marketing projects linking finance and gaming.
These attempts by the banking sector reflect a strategy that synergy can be created by partnering with internet companies that already possess accumulated data and know-how, in order to strengthen digital transformation and platform competitiveness amid rapidly changing financial trends. Industry insiders expect that such cross-industry alliances breaking down boundaries will continue, as financial sector leaders have declared in their New Year's addresses that they will simultaneously compete and cooperate with big tech.
A banking industry official explained, "Banks are trying to provide differentiated innovative services by integrating big tech's accumulated IT and portal expertise," adding, "There is an advantage in discovering competitive new businesses based on partnerships with big tech." Another official said, "This trend reflects efforts to overcome existing financial barriers, enhance customer convenience, and expand everyday financial services through collaboration with internet companies."
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