Dual Strategy Implementation
Core Banking 1 to Fully Transition by 2030... Core Banking 2 Gradually Transitioning to Cloud
Mainframe Renewal Contract with IBM to Maintain Customer Service Quality
KB Kookmin Bank is set to fully embark on modernizing its core banking system to lead digital finance. Core banking is the central axis of bank system operations, supporting customers' financial transactions and reliably processing large volumes of data.
On the 1st, KB Kookmin Bank announced that it has adopted a dual strategy for core banking modernization: maintaining the existing mainframe-based Core Banking 1, which handles large transactions reliably, and introducing Core Banking 2 optimized for new non-face-to-face financial services. KB Kookmin Bank plans to achieve the dual goals of stable financial transactions and digital innovation simultaneously.
According to the dual strategy, the mainframe-based Core Banking 1 will be fully transitioned by 2030, while Core Banking 2 will begin with tasks that have low interconnectivity with other operations and gradually move to cloud-based non-face-to-face financial service core functions.
To maintain the quality of customer service steadily during the modernization process, KB Kookmin Bank will renew its mainframe contract with IBM, which is set to expire in July 2025, until 2030. Starting from the first half of 2025, the bank plans to introduce a new mainframe environment to maximize the utilization of new technologies.
A KB Kookmin Bank official stated, "Core banking modernization is essential to respond to the surge in non-face-to-face transactions and changes in the financial environment," adding, "We will maximize customer experience by simultaneously realizing stable customer service and digital innovation."
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