Opening of First Specialized Branch in the Metropolitan Area: Songdo Branch
Expanding Non-Interest Income by Strengthening Asset Management Services
Bancassurance Collaboration with Dongyang Life and ABL Life
Woori Bank is set to open 'Two Chairs W,' its first asset management specialized branch in the Seoul metropolitan area, in Incheon. The bank plans to collaborate with Dongyang Life and ABL Life, which will be incorporated this year, to expand its asset management services to Incheon and other metropolitan regions, aiming to increase non-interest income.
According to the financial industry on May 27, Woori Bank will open a new asset management specialized branch, 'Two Chairs,' in Songdo, Incheon this July. This will be the ninth specialized branch following the headquarters, five locations in Gangnam, Seoul, one in Yeouido, Seoul, and one in Haeundae, Busan. It will be the first such branch in the metropolitan area.
A Woori Bank representative explained, "Songdo International City is expected to create new business opportunities due to infrastructure expansion and continuous population inflow. In addition, its location within the Knowledge Information Industrial Complex makes it advantageous for targeting high-net-worth clients, not only from nearby residential complexes but also from research institutes, corporations, and administrative agencies."
'Two Chairs' is Woori Bank's specialized asset management brand. Experts from various fields, including private bankers, real estate, trusts, and tax, provide one-stop, customized asset management services. While 'BIZ Prime Center' serves as the specialized branch for corporate clients, 'Two Chairs' is the equivalent for individual clients.
Since the second half of last year, Woori Bank has been aggressively expanding its specialized branches. This strategy stems from the recognition that there are limits to profit growth through ordinary retail branches. The bank aims to gradually increase non-interest income in both corporate and individual sectors through these specialized branches. Last year, Woori Bank's wealth management fee income reached 306 billion KRW, a 16.3% increase from the previous year. In the first quarter of this year, it also rose by 6.6% compared to the same period last year.
This is also why Woori Bank is expanding its 'Two Chairs W' specialized branches, previously concentrated in Seoul, to the metropolitan area. While the focus had been on existing clients, the bank now plans to increase the number of specialized branches in the metropolitan area and regional hubs, starting with the Songdo, Incheon branch.
In particular, this year, synergy between Woori Bank's WM Group and its affiliates is also anticipated. This is because the bank has received approval from financial authorities to acquire Dongyang Life and ABL Life, with the acquisition process expected to be completed in the second half of the year. It is already known that Woori Bank, Dongyang Life, and ABL Life are holding internal meetings on bancassurance sales strategies and exploring synergy opportunities.
The gradual easing of the 'Bancassurance 25% Rule' regulation by financial authorities this year is also a positive development for Woori Bank. The Bancassurance 25% Rule restricts banks from selling more than 25% of insurance products from a single insurer. Although this regulation was introduced to prevent market monopolization by insurance companies, it has lost significance since Samsung Fire & Marine Insurance withdrew from the bancassurance business.
Starting this year, the sales ratio for life insurance products can be expanded from the previous 25% to 33%. For Woori Bank, this is advantageous in terms of new product development and product diversification, while insurance companies are expected to benefit from securing additional sales channels. Once the incorporation of Dongyang Life and ABL Life is completed in the second half of this year, sales are expected to become possible.
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