April 24, 2024

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[THE INVESTOR] Kakao Bank seems to have made an impact on the uber-conservative Korean banking industry.

Shinhan Bank, one of the nation’s top three banks, has announced that it will dedicate a separate team to upgrade its online banking service. The bank actually said it would be forming an “internet bank,” but a closer look showed that it would not be an entity, but more like an in-house task force. 

Shinhan Bank CEO Wi Sung-ho

“The CEO (Wi Sung-ho) recently directed the bank to set up a new team to upgrade online banking services to the level of Kakao Bank,” a ranking official of Shinhan Bank told The Herald Business on the condition of anonymity.

“The CEO said the interface and user experience should better meet the demands of young customers who have already experienced Kakao Bank’s convenient and user-friendly banking service.”

Recently, Shinhan had unveiled SOL, an upgraded version of its mobile banking app. Instead of displaying features on the front page, SOL shows only six menus in the likeness of Google. Wi reportedly led the upgrade after trying out other banking apps in the market.

Among Korea’s top three banks, Shinhan is the only one without a stake in K Bank and Kakao Bank -- Korea’s only two internet-only banks. Kookmin Bank and Woori Bank, on the other hand, are key shareholders in both.

By Lee Ji-yoon (jylee@heraldcorp.com)