"Technology as an Asset"... 36% of Employees at Three Internet Banks Come from IT Companies

As internet-only banks intensify competition with commercial banks, they are putting their lives on securing technological competitiveness.

According to Kakao Bank on the 17th, it recently carried out an organizational restructuring focused on technological innovation. This year, Kakao Bank subdivided its technology team into ‘Platform Finance,’ ‘IC Technology Group,’ and ‘Trust Technology Group’ by area, appointing each group leader as an executive. In addition, it established a ‘Studio’ organization integrated by specific themes. For example, the mortgage loan announced the day before was prepared through the ‘Mortgage Loan Studio.’ Previously, people handling the same tasks were grouped only as a ‘team,’ but the studio system is an organization where developers, designers, and service personnel from various fields gather in addition to those in charge of existing loan operations. Kakao Bank has also established its own Financial Technology Research Institute and continues research utilizing big data and artificial intelligence (AI). Yoon Ho-young, CEO of Kakao Bank, said, “Kakao Bank is a technology bank,” adding, “Technology and innovation are core assets that facilitate the meeting of finance and customers.”

In fact, the workforce composition of internet-only banks is confirmed to be predominantly from the IT industry. According to data received by the office of Kang Min-kook, a member of the People Power Party, from the Financial Supervisory Service, as of the end of last year, the workforce composition of the three internet banks?Kakao Bank, K Bank, and Toss Bank?showed that those from IT companies accounted for the largest proportion. Among the total 1,687 employees of the three companies, 35.9% (605 people) were from IT companies. Those from commercial banks accounted for only 19.4% (327 people). Those from the secondary financial sector accounted for 22.7% (383 people), and those from other private companies accounted for 20% (338 people). The remaining 2% were other or new employees (34 people).

The proportion of technical personnel in the three internet-only banks averages around 50%. Kakao Bank has 50% of its total workforce, K Bank 40%, and Toss Bank 60%. This phenomenon appears to be more pronounced as they expand their business centered on non-face-to-face and mobile services. Kakao Bank introduced a conversational interface with a chatbot that feels like chatting on KakaoTalk in the mortgage loan launching on the 22nd. This technology is more advanced than the ‘page transition type’ used by existing financial companies. An official from an internet-only bank said, “As the business portfolio and services expand and users’ big data accumulate, related technical personnel inevitably continue to be needed.” Commercial banks are also continuously recruiting digital talent to compete with internet-only banks. A commercial bank official said, “In the past, IT teams were classified separately, but recently digital technology personnel have been deployed in each organization,” adding, “IT personnel are also continuously being replenished.”