Woori Financial Group has established a cooperative system that matches startups by affiliates. The move is aimed at strengthening cooperation with innovative companies in line with the government-led "Korean version of the New Deal" policy. Other financial holding companies are also competitively expanding their cooperation with startups. The industry predicts that the atmosphere will intensify as the five major financial holding companies declare that they will provide dozens of trillion won in funding to innovative companies over the next five years.
Affiliate-Startup Matching Operations
According to the financial sector on the 9th, Woori Financial Group is jointly running its business by matching each affiliate with a company that moves into Dino Lab (a program to foster Woori Financial startups). It is explained that each company is most actively cooperating or has chosen a company that can create synergy in the future. "Since last year, we have expanded Dino Lab, which was operated exclusively by Woori Bank, to all group companies from this year," a Woori Financial official said. "Since opening the integrated center in June, we have matched five affiliates and startups respectively."
The first to achieve results is Woori Bank of Vietnam and Pintubi, a supply chain finance company. In July, the company signed an alliance with Woori Bank of Vietnam regarding SME sales bond discount services. Banks use this system to raise funds for SMEs in Vietnam. Woori Bank has a cooperative relationship with Asil (real estate platform) and Korea Credit Data (small business sales management platform), which are fintech companies specializing in real estate. In the second half of the year, it will also introduce non-face-to-face real estate mortgage loan services using these companies' platforms and financial products exclusively for small business members.
Will the Korean New Deal make the game even bigger
Other financial holding companies are also racing to solidify their cooperation with startups. They can apply a startup's platform to each financial company's products and services, or jointly develop services. Shinhan has established a deposit trust management system with Honest Fund, a peer-to-peer transaction (P2P) company. In this way, Shinhan Bank manages the fund's investments. Shinhan Card has recently released a phone case exclusively designed to enable users to pay for iPhones in collaboration with Dansol Plus for the first time in Korea.
Most of KB Financial Group's affiliates are working with Flyhigh, a mobile authentication solution company. When subscribing to various financial products, the company's service provides ID verification and online certificate issuance. Hana Financial Group is applying the technologies of Mines Lab and Kraft Technologies to Hana Bank's interactive financial services and robo-advisor asset management services, respectively. Nonghyup Financial is working with Kraft, a tractor remote inspection monitoring equipment company.
The industry predicts that the government-led "Korean version of the New Deal" will serve as a catalyst for such collaboration. The five major financial holding companies announced that they will provide a total of 70 trillion won in funds through investment and loans to innovative companies such as digital and green new deals over the next five years. It is highly likely to increase support for companies participating in each holding start-up promotion program. "With the Korean version of the New Deal, landlords will be more competitive in finding new businesses through cooperation with startups," a financial holding official said. "Technical fintech companies will have higher ransom."
