SEOUL, Dec.1 (Korea Bizwire) – K Bank Consortium, which has gained preliminary approval as an internet-only bank, pledged that it will create an innovative success model and lead the revitalization of the economy. Company officials also mentioned their vision to make ‘community neo-banks’ that are friendly and easy to use for everyone.
Officials also laid out their blueprints to start making profits within three years, reach the break-even point in six years, and in 10 years, reach 20 trillion won in total assets.
Officials from K Bank, which is lead by KT, explained the company’s business plan at a briefing for internet-only banks having received preliminary approval.
Besides KT, Bankware Global, Posco ICT, Bridgetech, Mobile Leader, GS Retail, Yap Company, Ezwelfare, Woori Bank, Hyundai Securities, Hanwha Life Insurance, KG Inicis, KG Mobilians, Danal, Korea Information & Communication, INFOvine, 8 Percent and Korea Tourism Organization are participating in the K Bank Consortium.
Company officials suggested that ‘power of execution’ and ‘innovation’ are the criteria that lead to the success of internet-only banks.
They appealed that they are a consortium consisting of the best stock holders who can execute innovation and manage the business in a stable manner.
Companies related to payment, online and offline platform businesses and businesses related to Fintech can lead the big data innovation, and companies with global business aptitudes such as Alipay, Korea Tourism Organization and Smile Gate are also participating.
As an innovative business model, K Bank suggested non-face-to-face certification and various savings and loan plans based on credit evaluation using big data.
K Bank plans to provide not only online services but also offline banking services through various contact points. Other than certification through mobile and bio-information, 1,000 GS Retail convenience stores, seven Woori Bank branches, 7,000 ATM machines and 1,000 KT telephone booths will be provided.
Based on these various channels, the ‘community ATM’ will act as a hub to connect clients so that they can certify or open new accounts.
KT also revealed that the KT agencies and IPTV will also serve as important channels.
KT officials commented that though it is difficult to install ATM machines all over the country, the 70,000 phone booths owned by KT already have power lines and internet cables connected, and are ready to function as ATM machines.
The various contact points are expected to lead to the diversification of deposit options.
By combining communication and deposits, free audio and data services can be provided. Also, combined with digital contents, VOD services from Olleh TV or the latest music could be downloaded using content interests.
With its vast big data information, K Bank also revealed its plan to revitalize mid interest rate loans.
In addition, a new credit card payment platform called ‘Express Pay’, which lowers commissions for both members and consumers will be launched.
Another innovation model suggested by K Bank is ‘Open APT Banking’, which is connected to various external contact points, allowing clients to link their banking services through all platforms. Clients can directly link to K Bank loan options while using the realtor application or connect to Hyundai Securities and sell stocks while using the K Bank application.
Through these innovations, K Bank anticipated that it would be able to raise more than four trillion won annually, and create new jobs.
K Bank also reported that it would enter the Chinese market through Alipay, and export solutions to Indonesia through the local Woori Bank headquarters at an early stage.
The company plans to launch its services in the latter half of next year, which is similar to the opening of Kakao Bank, another internet-only bank that received preliminary approval.
Officials at K Bank commented that they are not in a rush to start first. “Stabilizing the system holds the biggest priority. We shouldn’t make a mistake by rushing to open first.”
By Francine Jung (email@example.com)