Woori Financial realigns IT governance for digital boost

Panoramic view of Woori Bank’s headquarters in Jung-gu, Seoul

South Korea’s Woori Financial Group has reorganized its information technology (IT) governance, with its business units being directly responsible for management instead of Woori FIS Co., the group’s IT subsidiary.

Woori Financial Group announced Thursday that it has switched its way of operating IT tasks from inter-group commissioning to direct execution by group companies.

“Relevant discussions had been at a standstill for over ten years, but this time, the commitment of Chairman Yim Jong-yong and the decision by the labor and management, recognizing that IT restructuring could no longer be postponed for the future, allowed us to complete the transition smoothly and quickly without major issues,” Woori Financial said.

Woori Financial expects that the new IT governance structure will significantly shorten IT development and maintenance periods.

IT development and maintenance processes, which used to go through the IT subsidiary, are now expected to be reduced to less than two weeks from more than a month under the direct execution method.

Additionally, by eliminating redundant elements in tasks, Woori Bank Co., in particular, is expected to save about 13 billion won ($9.9 million) and Woori Card Co. about 2 billion won in sales management expenses. Woori Financial also anticipates improved IT capabilities of frontline staff and strengthened IT-related internal controls.

The governance reorganization is also expected to boost Woori Financial’s digital business.

Woori Bank is preparing for the New WON project, a complete overhaul of its Woori WON Banking, in the second half of this year.

This project aims to create a super application that connects not only banks but also card companies, capital companies, general financial companies, and savings banks.