Korea’s financial sector expands AI application to services

[Courtesy of Woori Bank]

Shinhan Bank Co., one of South Korea’s major commercial lenders, is set to launch the industry’s first artificial intelligence (AI) solution in January that recommends optimal products to financial customers. This platform uses cutting-edge AI to analyze customer characteristics and recommend products tailored to each individual.

According to multiple officials from Shinhan Bank on Tuesday, the lender has successfully developed a so-called No Code AI Studio platform, scheduled for a pilot launch in January 2024.

The platform, aptly named to signify its user-friendly nature, allows for use of AI without requiring coding skills.

As an effective working tool for employees at the bank, the platform amalgamates and models pertinent information from an extensive customer database. It then predicts customers who may require specific products and services from the bank or forecasts customer behavior in particular areas, helping employees make well-informed decisions.

Banks had to rely on employee experience and intuition for their customer management and marketing decision-making, coupled with computer programming skills to extract desired information from the customer database.

With No Code AI Studio, however, decision-making can be automated and the database can be easily used without needing software knowledge.

“We plan to enhance the platform following a pilot operation at ten branches in January next year,” said a bank official who asked to be unnamed. “AI has been applied to counseling in the banking industry previously but this marks the first instance of its application to a platform for customer management and marketing.”

Other commercial banks have also increasingly adopted AI in various areas, including customer consulting and the development of new financial products.

Woori Bank has been working on an AI-based financial consulting system since November, while Hana Bank introduced its AI asset management service AI Wealth in April.

Credit card companies are also gearing up to develop AI-based innovative financial services.

Six domestic card companies, including Shinhan Card Co., KB Kookmin Card Co., and BC Card Co., are slated to offer a new recommendation service in June 2024, which gathers personal credit information and recommends suitable financial products by analyzing financial status, consumption patterns, and other factors through AI.