IBK to expand investment in fintech

Industrial Bank of Korea CEO Kwon Seon-joo on Tuesday said the bank would provide increased support for local fintech startups and upgrade its mobile banking applications to offer total solution financing next year.

IBK will select financial technology companies through meticulous screening to offer them wider support, starting with the initial research phase, Kwon said during a news conference celebrating the first anniversary of her inauguration.

“The banking industry has faced many hurdles, including prolonged sluggish growth and the growing presence of IT firms in the financial sector. However, by working together, finance and technology can converge to provide the banking sector with a fresh opportunity,” the CEO said. 

In line with the tech trend, Kwon said the bank would upgrade its banking app IBK One to allow users to purchase financial products via smartphones. The bank’s previous application only offered basic mobile banking services.

“Technical evaluation is our field of expertise. It’s something what we’ve been doing since SMEs have come into existence,” Kwon said. “From next year, our efforts in fintech will shift from just lending loans to making tangible investments.”

IBK is a leading player in promoting the local fintech sector.

The bank has invested more than 3.6 trillion won ($3.3 billion) in IT businesses this year as of November and injected $548.7 billion won in internal technology assessments, company officials said.

By Suk Gee-hyun (monicasuk@heraldcorp.com)