Earnings System
Shinhan Investment Corp. has launched an upgraded “Client Earnings Rate Evaluation System 3.0” on March 2. The system has a Financial Product Portfolio section in addition to the existing earnings rate evaluation.
The system is for the management of client returns with the management of middle risk and middle return products. Every month the company will select employees who show high earnings rates, and will also select the best employees showing highest earnings rates in the financial product portfolio sector twice a year.
Shinhan Investment Corp. introduced the Client Earnings Rate Evaluation System for the first time in the industry in 2012 and linked client returns with its employee evaluations.
Last year, the company expanded the range of evaluations to returns of not only stock assets but also clients’ total assets including their financial products. It also launched the Client Earnings Rate Evaluation System 2.0, which connects clients’ returns with its employees’ performance evaluations and performance-related pay.
The company’s continuous efforts to increase client earnings rates have led to client asset growth. In the past 3 years, the balance of financial products has increased by 2.5 times, from 16.8 trillion won (US$15.25 billion) to 43 trillion won (US$39.04 billion). Total assets have also almost doubled to 76.3 trillion won (US$69.28 billion).
Park Suk-hoon, vice president of the Retail Business Group at Shinhan Investment Corp., said, “The Client Earnings Rate Evaluation System, which has been introduced for 4 years now, is spreading across the securities industry. Utilizing the medium risk and medium returns products, we will work more on the management of our clients’ returns rate in the long term.”