IBK 기업은행

IBK has evolved to become far more than a policy financing institution. Today the Bank specializes not only in corporate banking, but also in consumer banking and offers customers a comprehensive range of financial services that meet the rapidly changing demands of the consumer banking sector.

As a result of IBK’s continuous growth in the consumer banking sector, total individual customers’ savings increased by KRW 3 trillion from KRW 37 trillion in 2007 to KRW 40 trillion at the end of 2008. Of note was a new savings account offering competitive interest rates on small balances-at year-end, deposits in 329,000 accounts surpassed KRW 0.8 trillion. The product was awarded the Excellent Product of the year by ten consumer and public organizations.

One of the marketing strategies is through the integrated CRM system that compiles and analyzes customer data on a real-time basis, allowing it to provide products and to utilize various service channels. It also enables one-on-one marketing by highlighting cross-selling opportunities on screen, which often results in sales that would otherwise not have been made.

The Bank also responded proactively during 2008 to changing customer needs. Advances in technology and changing lifestyles resulted in just 13% of total transactions being handled by staffs at branches, a significant reduction from the 50% recorded in 2001. Keeping up-scaled sales capacity and user friendly in mind, IBK offered the tutorial service on IT system user manual via direct branch visit. Committed to boost up electronic commerce in the financial sector, IBK offered the following services.

Our commitment to become a leading bank in the electronic finance era led us to win the several awards; ‘8th Digital Business Innovation’, ‘2008 New Media’, ‘CIO Awards 2008 Best IT Project’, and so on.

In August, the Bank opened its first "IBK World Branch". Around half the size of traditional branches and staffed by 6 to 8 personnel, World Branches offer customers a unique banking experience with innovations such as Teller-Towers and Teller-ATMs that better meet their lifestyle. The introduction of World Branches is also expected to improve the efficiency of financial transaction and reduce the Bank’s operational expenses. IBK plans to further enhance customer satisfaction and operational efficiency by opening World Branches adapted to specific locations for the younger generations, such as shopping centers.

Further broadening its customer base and strengthening its relationship with customers, the Bank continued to operate co-marketing initiatives with various partners such as national supermarket chains. IBK was also appointed the receiving bank for the "National Housing Fund Service" in February and the sales agent bank for the High-pass national electronic toll collection system in March.
To lead a global banking industry and prepare ourselves for such paradigm shifts as mega merge, horizontal integration, and globalization, we specified detailed action plans for execution of IBK’s long-term IT strategy. IBK has continued to pursue innovation guided by its objective of being a bank focused on “Only For Customers.” We developed and successfully launched the sector’s first nextgeneration computer system to offer higher quality services. The convergence of banking with state-ofthe- art information technology has paved the way for timely new product development and greater efficiency.

Effective customer data protection is increasingly important and IBK is vigilant in protecting customer privacy. The Bank has formulated customer privacy principles to safely store and manage customer data and in 2006 became the first Korean bank to attain ISO 27001 certification for its information security management system. We prevented confidential information from being accidentally leaked by employing the ‘OTP Authorization Card for Work’ system. This enabled us to attain the BS25999 Certificate for the first time in Korea and renew ISO2000 & ISO27001 Certificates. As a result of those efforts, in 2008 the Bank was awarded Grand Prize for "Customer Satisfaction" by Korea's Most Admired Company (KMAC) and placed first among public institutions in a survey of the customer satisfaction category in a survey conducted by the Ministry Of Strategy and Finance (MOSF).

In the year ahead the Bank plans to continue strengthening its position in the consumer banking sector. Year on year retail loan growth for 2009 is targeted at 25%, with total loans expected to rise to KRW 20 trillion. At the same time, however, the Bank will make strenuous efforts to manage the quality of its assets, aiming to restrict delinquency ratio growth to 0.25%p and maintain an overall delinquency ratio of 0.50%. Furthermore, building on the popularity of its differentiated products and branch innovations, the Bank expects to realize substantial growth in deposits. For 2009, the Bank aims to achieve a net increase of 50% in deposits and has raised its annual target to KRW 12 trillion compared to KRW 8 trillion in 2008.

In order to diversify its client base, the Bank has continued to focus on relationships with SME related retail customers such as CEOs, employees, and their families, of whom approximately 30% are doing banking business with IBK. The Bank has been offering various financial and non-financial services through its extensive SME network to provide integrated solutions and personal asset management services such as financial investments, real estate investments, tax and legal services, and business and financial strategies.

In addition to diversifying client base, destined to realize the highest customer satisfaction, we are operating the ‘Customer Voice’ center along with the ‘Customer Complaint Zero Day’ and ‘Service Recovery 24’.

To meet the challenges of the changing financial environment and increasing demand of high-networth customers for total wealth management services, in 2008 the Bank continued to enhance the quality and competitiveness of its Private Banking (PB) operations.

The PB division also extended its wealth management services with the introduction of Bond website, a fund sales support system, from the first half of 2008. The system provides online access to fund performance analysis, portfolio proposals, and other investment tools that have raised the PB division’s competitiveness in investment product consulting and revitalized its portfolio sales system.

IBK implemented the diversified ‘member-getmember’ marketing campaigns and satisfied our most valuable customers. Besides, we teamed up with internal and external experts and provided the ‘Fund Research Service’ to our customers within our nationwide network. We have done so in order to avoid the limitations associated with branch-level management and promote the long-term investment environment. As a result, the number of PB clients served by IBK increased by 28,000 in 2008, comprising 81,000.