By Yi Whan-woo
Shinhan Bank has signed a deal to set up a joint venture aimed at a tailor-made banking platform for small and medium-sized enterprises (SMEs) in partnership with an information and communications technology (ICT) firm, the lender announced on Wednesday.
It said the deal with Douzone Bizon is anticipated to offer financing assistance to prospective SMEs, which struggle with raising capital due to a lack of credit compared to conglomerates.
"We will prepare to introduce a platform that can promptly fund SMEs through the deal," the bank said in a press release.
It went on to say that it will capitalize on the partnership with Douzone Bizon to pioneer new businesses connecting traditional banking and ICT, in line with Shinhan Financial Group Chairman Cho Yong-byoung's vision of making new banking services easier and more convenient.
The envisioned platform focuses on encashing SMEs' trade receivables quickly, as well as analyzing the manufacturing process, sales and other business activities in real time.
Using the collected data, the platform will predict the timing for the financing needed by each SME and loan them money in advance.
"The system will allow them to fund money at the right time, and they will be able to save costs and time in terms of financing," the lender said.
The country's second-largest bank has been active in using digital technology to keep up with the rapidly changing banking industry.
Shinhan Bank has signed a deal to set up a joint venture aimed at a tailor-made banking platform for small and medium-sized enterprises (SMEs) in partnership with an information and communications technology (ICT) firm, the lender announced on Wednesday.
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| Shinhan Bank headquarters in central Seoul / Courtesy of Shinhan Bank |
"We will prepare to introduce a platform that can promptly fund SMEs through the deal," the bank said in a press release.
It went on to say that it will capitalize on the partnership with Douzone Bizon to pioneer new businesses connecting traditional banking and ICT, in line with Shinhan Financial Group Chairman Cho Yong-byoung's vision of making new banking services easier and more convenient.
The envisioned platform focuses on encashing SMEs' trade receivables quickly, as well as analyzing the manufacturing process, sales and other business activities in real time.
Using the collected data, the platform will predict the timing for the financing needed by each SME and loan them money in advance.
"The system will allow them to fund money at the right time, and they will be able to save costs and time in terms of financing," the lender said.
The country's second-largest bank has been active in using digital technology to keep up with the rapidly changing banking industry.
