Shinhan Financial Group Chairman Han Dong-woo said the group should move ahead of its competitors in digitalizing the system amid a protracted slowdown in the global financial sector and seek optimal solutions to localize its overseas operations to grow as a global financial company.

“Digitization is an irreversible trend in the financial services industry that is spreading at a rapid pace,” Han said during the event that took place in the financial group’s headquarters in central Seoul on Thursday, celebrating the 15th anniversary of the group’s founding. “The global economy has recently passed the period of so-called ‘new normal’ where low growth and low borrowing rate have been the norm, and is now entering the state of ‘new abnormal’ with more uncertainty,” he added.

Han noted that the rapid development of information and communications technology (ICT) is bringing about fundamental and big changes in not only the financial sector but also society in general.

As part of efforts to cope with changes, Han proposed five management strategies for Shinhan Financial Group - digitization, globalization and localization, dynamic risk management, unity (one Shinhan), and soft finance based on customer needs.

With regard to globalization and localization, Han said it is important for Shinhan Financial Group to develop products that are specifically tailored to the demand of local consumers and efficiently build process to deliver them. Han also stressed on the need of arranging an evaluation system that matches well with the local financial ecosystem and an overall personnel operation system that focuses on the local region.

Han also urged the group employees to introduce more dynamic risk management solutions. The chairman in particular emphasized the need of widening the group’s asset portfolio, departing from the current focus on low-risk products. “We should establish a more preemptive and dynamic risk management system that supports the real (economy) in addition to overall finance industry as well as investment on top of traditional deposit and loan businesses,” Han said.

Shinhan Bank was established in 1982. Shinhan Financial Group was launched as a holding company in September 2001 with an aim to boost synergy among its financial units.

By Noh Seung-hwan

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