Following Commercial Banks, Regional Banks Also Partner with 'Big Tech'

Big Tech and Selective Collaboration Strategy
Jeonbuk and Gwangju Banks Form Business Alliances with Naver and Toss

[Asia Economy Reporter Jin-ho Kim] Following major commercial banks, regional banks have also embarked on a 'cozy alliance with the enemy' by partnering with big tech companies (large information and communication enterprises). As digital acceleration increasingly blurs the boundaries of the financial industry, this move is analyzed as a new survival strategy to overcome 'regional limitations.'

According to the financial sector on the 1st, Jeonbuk Bank signed a business agreement with Naver Financial on the 28th of last month to 'develop digital financial services and activate non-face-to-face marketing.'

Through this business partnership, the two companies plan to design financial products suited to the digital financial environment and engage in joint marketing of financial services. It is expected that the synergy will be created by combining Naver Financial’s experience in online content and technology platforms with Jeonbuk Bank’s digital innovation projects such as AI-based chatbots, call centers, and Fraud Detection Systems (FDS).

In the case of Gwangju Bank, a business agreement was signed with Toss to promote new financial service partnerships. They are also actively conducting personnel exchange activities to learn a horizontal organizational culture. Daegu Bank is reportedly about to sign a business partnership with Kakao Pay soon.

Prior to regional banks, commercial banks have already been accelerating partnerships with big tech companies.

Woori Bank recently launched the 'Woori Bank Naver Smart Store Loan' in collaboration with Naver Financial, a subsidiary of Naver Finance, marking the first such product in the banking sector. This loan is exclusively for individual business owners who have operated on Naver’s representative online sales channel, Smart Store, for more than six months. Borrowers can check loan limits and interest rates on the Naver application (app) and then complete the loan agreement and execution through 'Woori One Banking.' The loan limit is up to 40 million KRW with preferential interest rates of up to 0.8 percentage points.

Woori Bank plans to further expand the 'Small Business Financial Support Cooperation Project' with Naver by utilizing non-financial data and broadening the loan target in the future.

Shinhan Bank also chose Naver Real Estate, the country’s number one real estate information platform, as a partner. Customers can easily and quickly search and apply for Shinhan Bank’s jeonse (key money deposit) loan products on Naver Real Estate. This eliminates the inconvenience of searching for jeonse listings and separately applying for loans at the bank, maximizing customer convenience. Shinhan Bank is also providing a simple currency exchange service in partnership with Naver Pay.

A banking industry official said, "The combination of banks’ financial know-how and the influence of big tech platforms offers great potential for new business opportunities," adding, "Such strategic partnerships are expected to continue until banks establish their own platforms."