JB Financial inks partnership with Hanpass

JB Financial Group announced Thursday that it has signed an investment agreement to acquire a 15 percent stake in Hanpass, Seoul-based overseas remittance service company.

With the latest agreement, it entered a second strategic partnership with a fintech company, following a similar agreement signed with Finda, a Seoul-based fintech company specializing in loan services, in July.

"Cooperation between banks and fintech companies is anticipated to become a new foundation for growth as the role of banking as a service (Baas) is expected to increase amid heated competitions in the financial service industries,” said JB Financial Group Chairman Kim Ki-hong.

Under the agreement, JB Financial Group and its two other subsidiaries -- Jeonbuk Bank and JB Investment -- will each acquire a five percent stake. With a total of 15 percent stake, the financial group will become the second largest shareholder of Hanpass.

Meanwhile, the fintech company will use a portion of the investment fund to buy JB Financial Group’s shares in the market.

Hanpass, established in 2017, has grown into a major small-sum overseas remittance service company with around 570,000 international customers and 140,000 monthly active users. Last year alone, some 1.4 trillion won was remitted annually through the company.

“Through strategic collaboration with JB Financial Group, we will not only improve financial services in various areas including foreign remittances, transactions, and lifestyle banking services but also seek mutual growth through continued collaboration and mutual share purchases," said Hanpass CEO Kim Kyung-hoon.

By forging a partnership with Hanpass with a solid foreign customer base, JB Financial Group aims to enhance its competitiveness in the loan market for foreigners as part of its efforts to become a foreign-friendly financial institution. It plans to launch various financial products targeting Hanpass' international customers while also expanding digital services for foreigners.