The KB Financial Group focuses on creating and utilizing synergies to take the lead in the financial market
KB Financial Group has been catching the eyes of financial experts as the group succeeds in creating synergies. Since the launch of the financial group in September 2008, KB Financial Group has been making various efforts to maximize group synergies to elevate the capabilities of non-banking subsidiaries to the level of KB Kookmin Bank, the biggest bank in Korea. KB Plustar, a hybrid financial product, is the result of such efforts. 280,000 KB Plustar Bankbook accounts, KB Financial Group’s first hybrid product, have been created since its launch on April 22. This could only be achieved thanks to synergies at KB Financial Group which utilizes the sales networks of KB Kookmin Bank, which consists of approximately 1,200 branches.
KB Financial Group developed KB Plustar Bankbook with the aim of letting customers use complex financial services more easily and conveniently through the use of just one single bankbook. As a result, owners of the bankbook can use the services of both KB Kookmin Bank and KB Investment. The bank also offers higher interest rates to them. . Another achievement is the creation of synergies among member companies of KB Financial Group.
KB Kookmin Bank and KB Investment provided successful M&A consulting services for the Lotte Group at a time when it wanted to take over Doosan’s liquor business unit. In this case, KB Kookmin Bank effectively used its financial functions while KB Investment played its role as a reliable M&A advisor.
KB Financial Group also creates synergies out of utilizing the vast customer information of KB Kookmin Bank. KB Life Insurance opened its Mapo branch, the first face-to-face business channel for a non-banking subsidiary of KB Financial Group, in June. The branch is a total consultant by tele-skill (TC) channel that deals with the financial consulting and telemarketing sectors.
In addition, the branch visits customers who need life insurance products and provides insurance policies and services after holding telemarketing activities in advance by making use of the customer information of KB Kookmin Bank. Celebrating its first anniversary, KB Financial Group laid the foundation for securing synergies when it completed the centralization of its IT center and an integrated groupware installation project in accordance with the IT strategy of the financial group. KB Financial Group IT moved the centers of its subsidiaries into the KB Kookmin Bank IT Center in Seoul’s Yeouido district and successfully integrated the IT infrastructure and system operators. In addition, KB Financial Group finished the integrated groupware system by combining the systems under the independent management of subsidiaries into one based on the groupware of KB Kookmin Bank.
KB Financial Group expects that it will be able to secure an integrated communication channel and activate internal communities thanks to installation of the system. “In the future, we will finalize the installation of integrated groupware by integrating electronic settlement systems of subsidiaries and strengthening security,” said a spokesperson at KB Financial Group. KB Financial Group is preparing a full-scale synergy program to lead the way in the domestic financial market.
The first project is to build a group CRM mart. A group CRM mart lets all subsidiaries share customer information by integrating customer information scattered at each subsidiary with persistent standards. The group CRM mart enables customers to use general financial services across all financial sectors, such as banking, credit cards, securities and insurance.
Moreover, KB Financial Group is operating an integrated group royalty program by integrating the VIP customer benefit programs of its subsidiaries. The second step is to run a complex channel to offer a general financial service at a group level. The financial group executes a project to maximize synergy profits actively.
KB Financial Group is planning to enter a full-scale synergy sales process by completing sales support systems. Furthermore, an integrated group purchase process is being prepared to cut down on costs.