Hana Bank adopts digital-first mindset to fend off competition

South Korea’s Hana Bank is emphasising digital banking to remain competitive in the face of challenges from big tech companies and digital-only banks.

The bank has adopted various digital initiatives, including online-only products, and collaboration with fintech startups like Lucentblock on projects in artificial intelligence (AI), blockchain, and data analytics.

To promote a virtual economic ecosystem, the bank has partnered with The Sandbox, a blockchain-based metaverse platform, to open a virtual branch that offers basic banking services.

To accelerate its digital transformation, Hana Bank appointed So Jung Kim as deputy president and head of digital banking and experience in July 2021. Believed to be the first female deputy president appointed at a local Korean bank, Kim’s 25-year background in e-commerce and digital marketing in companies such as Delivery Hero and eBay Korea is expected to play a key role in driving Hana Bank’s digital growth.

According to Kim, the increasing competition from big tech companies and digital-only banks is driving Hana Bank to take proactive steps to advance its digital capabilities, adopt latest technologies, and pursue strategic partnerships.

The bank’s digital strategy consists of three main approaches: innovating consumer experience, expanding value chains, and leading new digital businesses. By prioritising a digital-first set of core values, Hana Bank aims to stay competitive and maintain a strong position in the market. It recognises the importance of digital banking to tackle the challenges posed by tech giants and digital banks.

In addition, Seok Woo Kang, general manager of the retail product department, and his team are focused on the development of online-only products. He said that by leveraging data analytics and AI, the bank is creating more personalised experiences for customers. These efforts further strengthen Hana Bank’s digital offerings and bolster its competitive edge in the financial landscape.