Telecommunications, Electrical Industry, Healthcare... Banks Partnering with Non-Financial Sectors

Banks Form 'Blood Alliance' with Telecom Giants SKT and KT
Joining Forces with New Players in Healthcare, AI, and Other Fields

On the 22nd, at the SK Telecom headquarters in Euljiro, Jung-gu, Seoul, Ham Young-joo, Chairman of Hana Financial Group (left), and Yoo Young-sang, President of SK Telecom, are taking a commemorative photo after signing a strategic partnership.

[Asia Economy Reporter Minwoo Lee] Banks are actively partnering with different industries such as telecommunications and healthcare. This strategy is interpreted as an effort to secure various possibilities in preparation for the 'Big Blur' era, where boundaries are breaking down.

According to the financial sector on the 28th, Hana Financial Group recently agreed to exchange shares worth 400 billion KRW with SK Telecom. Along with this, they signed a memorandum of understanding (MOU) focusing on ▲financial digital transformation ▲discovering new businesses through the combination of telecommunications and financial data ▲joint use of infrastructure by both companies ▲digital-based joint marketing ▲fusion of customer-specialized products and services ▲environmental, social, and governance (ESG) cooperation. The goal is to carry out ultra-collaboration by working with SK Telecom and affiliates such as SK Square to combine not only telecommunications but also commerce, media, security, and finance.

This cross-industry collaboration is not the first. Earlier this month, Hana Bank signed an MOU with The Sandbox, a blockchain-based metaverse platform company, for a global metaverse platform business. In May, they announced an MOU with EnGen Bio, a medical precision diagnosis platform company, to provide VIP healthcare services. Through this, they plan to offer various health management services to VIP customers and are also considering providing diverse financial services through healthcare data partnerships in the future.

Shinhan Financial Group also established a 'blood alliance' early on by exchanging shares with KT in January. Recently, Shinhan Bank became the first domestic bank to sign an MOU with the Korea Electrical Industry Promotion Association. The purpose is to provide various financial solutions to electrical industry companies and support their overseas expansion. They are continuously specializing in professional financial services related to overseas direct investment while striving to discover additional business models.

Shinhan Financial Group has also ventured into different businesses on its own. The delivery order application (app) 'Ttaenggyeoyo,' launched in January as the first by a financial company, is a representative example. It is evaluated to have succeeded in differentiation in the delivery market dominated by pioneers such as Baedal Minjok and Yogiyo by offering low commissions and financial services like 'owner support funds.' Currently, Ttaenggyeoyo is operating in all of Seoul, Bucheon City in Gyeonggi Province, and four districts in Busan. As of the end of last month, it recorded 157,000 monthly active users (MAU), nearly eight times the 18,000 users in January. It is expected to surpass one million cumulative members by September.

Woori Bank recently partnered with Yonsei University for artificial intelligence (AI) research and development. The goal is to jointly research algorithms to apply the latest AI technology to the financial industry and apply them to business models. In April, they partnered with Emro, an AI-based supply chain management software company, to develop a supply chain platform. This is to enable the provision of Emro’s purchasing system and Woori Bank’s exclusive financial products together on the platform.

Senior Research Fellow Bonseong Koo of the Korea Institute of Finance said, "The current financial-centered platforms in the banking sector can provide relational finance, corporate finance, and high value-added services by leveraging comprehensive financial competitiveness, but they are still limited in acquiring new retail customers, linking with non-financial demand, and securing technological superiority." He advised, "It is necessary to build an ecosystem for aggressive digital marketing and rapid utilization of external technologies."