“It’s nice not having to worry about the people behind me” AI now handles loan consultations, too... The evolution of smart banking [On the scene]

[Financial News]#. A customer in their 70s, identified as A, recently visited Shinhan Bank to open a “living-expenses account.” They expected complicated procedures and a long wait, but with guidance from the bank employee on screen at the “Baro Video Banking Desk,” they were able to open the account within 10 minutes.#. Customer B, in their 40s, feels self-conscious about customers waiting behind them when they go to a bank. But at the dedicated wealth management desk, with no customers pressing them to hurry and no tellers present, they were able to calmly explain their financial situation and receive information about a range of products.The two cases are reconstructions of customer experiences actually encountered by employees at Shinhan Bank’s Seolleung branch, which operates as a Smart Innovation Branch. The branch can provide tailored services to customers who visit for different reasons because it separates spaces for routine banking transactions from those for specialized consultations.

According to the financial industry on the 12th, Shinhan Bank began converting its branches into Smart Innovation Branches in October last year, starting with two, and has completed the conversion of 91 branches so far. Its goal is to have 100 Smart Innovation Branches by the end of this year.
Smart Innovation Branches are characterized not simply by having more digital devices, but by dividing service areas according to customers’ reasons for visiting. Routine banking transactions are handled quickly using digital devices, while ample time is set aside for loans and wealth management consultations that require employees’ expertise.
At Smart Innovation Branches, an average of around 40 non-loan transactions per branch are handled each day through smart kiosks.
When customers enter a Smart Innovation Branch, a concierge manager first checks the reason for their visit and directs them to an appropriate area. At the “Baro Video Banking Desk,” customers can communicate in real time with a bank employee on screen and handle various transactions, including opening accounts, issuing cards and printing transaction histories.
Shinhan Bank stations employees on site, recognizing that older customers may find the devices difficult to operate. Some say the devices feel unfamiliar, but quite a few older customers quickly get used to them because they are easier to operate than smartphones. One customer said, “It’s reassuring to be able to talk in a private space without having to expose sensitive information, such as my financial transaction history, to other people.”

Customers seeking a loan consultation can use the “Baro Loan Desk.” Consultations are available not only for unsecured loans, but also for mortgages and loans for jeonse deposits. Once customers’ submitted documents are scanned, a specialist advisor reviews them and conducts a consultation by video.
The digital desk handles six to seven loan consultations a day. Of these, 86.2% of loans are completed from consultation through origination without going through an in-person teller counter.
The wealth management desk focuses on in-depth consultations tailored to customers’ financial situations and investment goals. The change is significant for employees, too. Freed from the pressure to handle routine transactions quickly and from the strain of seeing other customers waiting in the banking hall, they can focus on one customer in a calmer environment.
An official at Shinhan Bank’s Seolleung branch explained, “In the past, the teller counters were arranged in a row, so customers receiving consultations had to worry about the customers waiting behind them.” The official added, “We separated the spaces so customers who need consultations can receive them fully, while those seeking routine services can be served quickly.”


Alongside its branch-space upgrades, Shinhan Bank is also pursuing “Loan Process AX,” which applies artificial intelligence (AI) to loan services. AI analyzes certified copies of property registers, building registers, market-price data and other information, assesses products, interest rates and loan limits suited to each customer’s circumstances, and provides employees with the results in report form.
However, AI does not decide whether to approve a loan. Instead, it supports employees so they can refer to AI’s analysis, verify a product’s suitability and potential risks, and focus on making the final decision and advising customers. The “AI Consultation Summary” feature can also link previous consultation details to follow-up consultations, reducing the inconvenience of customers having to repeat the same explanation.
A Shinhan Bank official said, “The Smart Innovation Branches and the AI transformation of our loan process are the result of Shinhan Bank putting all its available resources into building an optimal system that allows us to focus on our customers.” The official added, “Rather than being just a slogan about focusing on customers, we have concentrated all our capabilities on establishing the practical conditions needed to do so.”
[email protected] Seo Ji-yoon Reporter