SAMSUNG Securities stands for asset management for all people under the new service name of “POP.” This new service targets both wealthy and ordinary middle-class people. POP stands for “Platform Of Private banking service” and consists of the POP System, the POP Portfolio and the POP Service.
The three core elements of this service form a system to analyze customers’ propensities, products and investment strategies in accordance with those propensities and thorough management services. The POP System suggests customized portfolios after dividing all financial products into 21 asset groups by investment assets and regions and analyzing the expected returns and risks of assets.
The POP System offers not only quantitative analysis, such as risk diagnoses and changes in returns and portions of assets, but also qualitative analysis of financial products. Such general performance management within one single system realizes the rebalancing of customer assets. Customers receive POP reports regarding their investment status.
By introducing the POP System Samsung Securities expects to turn its conventional asset management sales, which have depended on the individual capabilities of PBs, into advanced asset management sales on the foundation of a systematic support system of specialist groups at the corporate headquarters. At the moment, customers can experience the POP service with the help of PBs at the POP Zone at branches of Samsung Securities. Customers can also receive consulting on the POP System by installing e- POP Zone on their PCs or calling the POP call center.
“The launch of the POP System is the first real case of ‘Create with You,’ the latest brand slogan of Samsung Securities to create a new investment culture with customers,” said a staff member from the PR Department of Samsung Securities. “This new service will help Samsung Securities to secure differentiated competitiveness and a wide customer base at a time when the financial market is changing.”
On the other hand, Samsung Securities keeps on marching toward becoming a global financial player. The company threw its hat into the international investment banking market that has shrunk due to the global financial crisis. The company opened Samsung Securities Asia Ltd. at Three Exchange Square Building, the banking industry center of Hong Kong.
Recruiting local people in large numbers and launching a large-scale organization overseas for overall investment banking activities rather than brokerage only is almost unprecedented in the industry.
Samsung Securities decided to enter into the market in Hong Kong to overcome limits of the Korean market and secure advanced capacity for investment banking. Last year, it recruited employees, secured various business permissions, and increased the capital of Hong Kong Corporation by 100 million dollars. The business began with 34 employees, including the existing employees, and the company plans to increase the number to 50 by the end of 2009.
Its strategy is to settle investment banking business in Hong Kong earlier, expand the business to China, Singapore, Taiwan, and India based on the business, and achieve the vision of becoming a ‘Global Top 10’ by 2020. In particular, it is looking for ways to secure a joint venture affiliate to enter into China, which is considered to have high potential both for investment banking and private banking. The company plans to make a fully-fledged entrance into the market 2-3 years after establishing the joint venture.
The company’s new business areas promoted in Hong Kong are corporate finance revolving around enterprise content management (IPO, capital increase, block deal, etc.), M&A, stock brokerage for local institutions, trading, and principle investment.
In addition, the company aims to settle in the niche market earlier by promoting the Korean investment banking model, providing products with an appropriate level of risks based on solid retail customers rather than the traditional model of making profits through trading or principle investment based on large-scale leverage.