Financial Groups Collaborating with ICT Companies for Digital Transformation

Collaboration between the financial and information and communications technology (ICT) sectors is in rapid progress to the point of some preparations for joint venture establishment beyond strategic cooperation based on MOUs. This is because digital transformation is becoming increasingly essential for financial companies’ survival with big tech firms such as Naver and Kakao increasing their presence in the financial sector.

Woori Financial Group and KT are planning to sign a joint business agreement on Aug. 19. The agreement for the upcoming MyData Project is to better respond to law revision for big data utilization. They are planning to set up a joint venture depending on the progress of the project.

The project of the South Korean government is accelerating the formation of financial-ICT alliances. KB Financial Group recently held hands with NCSoft, which has continued to knock on the door of the financial sector since 2015. Their alliance, which will be led by KB Securities, is expected to provide artificial intelligence-based asset management services and accumulate various types of data during the course.

Hana Financial Group set up Finnq with SK Telecom in as early as 2016. The joint venture’s main service is loan comparison and the number of financial companies participating in the service has almost doubled to 11 since its establishment. Finnq is trying to join the MyData Project, too. Shinhan Financial Group is even working with Naver, which is regarded as its rival in the digital financial industry. The group recently launched an AI-based financial consulting service in cooperation with Naver.