Digital-Centric Major Transformation... Leap to Nationwide Public Finance [Local Bank's New Survival Strategy]

BNK Busan Bank is embarking on nationwide operations with an 'only mobile' digital strategy.

By partnering with internet-only banks with platform competitiveness, they are preparing joint loans in the second half of this year and joining the 4th internet-only bank consortium, the only local bank to do so, to expand loans to individual customers, small businesses, and SMEs remotely. They are also launching smart campus and school platforms to collaborate with universities and secure future customers familiar with digital technology.

According to the financial sector on the 29th, BNK Busan Bank has set 'only mobile' as the core keyword while establishing a digital transformation strategy at the group level this year. Moving beyond the existing 'mobile first', the direction is to build a mobile-based business process that handles customer-related tasks regardless of time and space via mobile.

Last month, they recruited a digital expert from KB Kookmin Bank to oversee BNK Financial's digital innovation. Jeon Seong-pyo, head of the Customer Experience (CX) Innovation Division, contributed to enhancing digital competitiveness at Kookmin Bank by serving as the head of the Future Contact Center Promotion Division and the Smart Customer Group. At the end of last year, they created departments such as the Non-face-to-face Customer Department, Digital Sales Center, and IT Planning Headquarters.

The drastic transition to a digital bank by Busan Bank is to overcome regional limitations as a local bank. With the prolonged economic stagnation in the region, Busan Bank's net profit for the first quarter decreased by 33% compared to the same period last year. Over 80% of Busan Bank's corporate loans are to SMEs, leading to decreased profitability and soaring delinquency rates. In contrast, internet banks, which operate 100% remotely, are surpassing local banks in performance based on the growth of personal customer loan assets and platform competitiveness.

In particular, Busan Bank has chosen strategic collaboration over competition with internet banks according to its digital transformation strategy. They are waiting for the review results after applying for innovative financial services to the Financial Services Commission to launch joint loans with K-Bank in the second half of this year. In March, they joined the 'Korea Soho Bank Consortium', which is preparing the 4th internet bank, as the first among local banks.

Joint loans, such as the 'Together Loan' launched by Gwangju Bank and Toss Bank in August last year, are establishing themselves as a business model with synergy, with the supply amount approaching 1 trillion won. Accordingly, Busan Bank also seems to have realized the necessity of remote loans targeting the 13 million nationwide customers secured by K-Bank by developing competitive joint loan products.

They plan to discover new products beyond joint loans by combining Busan Bank's accumulated financial industry know-how with K-Bank's IT operational capabilities and credit evaluation model technology.

Korea Soho Bank is securing small business sales data while operating 'Cash Note' by Korea Credit Data. Busan Bank is expected to analyze small business data through cooperation with Korea Soho Bank and develop and supply customized deposit and loan products for them.

Busan Bank is also introducing an educational platform to target future customers. In December last year, they launched 'Morak', the first school community service in the financial sector. It includes information such as school announcements, academic schedules, timetables, and meals.

Previously, in August last year, Busan Bank collaborated in building a smart platform for Dong-A University, securing 24,000 university students as users. A Busan Bank official said, "We are expanding partner schools and enhancing services to secure future customers."

Park So-hyun, Reporter