Industrial Bank of Korea (IBK) won “Best Mobile Financial App” category at the 2024 Finovate Awards. Emerging victorious from a field of six impressive finalists, Industrial Bank of Korea’s i-ONE Bank app won over our judges for its “great set of features” in the words of one evaluator, and its “smooth and clean UX/UI,” in the words of another.
“This mobile app appears to do it all,” yet another judge said, “It was especially good to see that it gives customers a variety of options for log-in and personalization of the user experience. They’ve clearly focused on security and made sure there are many different functions available, even currency exchange.”
We caught up with Kim Sung-tae, CEO of Industrial Bank of Korea, to learn more about the institution’s award-winning mobile banking app and what sets it apart from competitors in the Korean market. We also discuss the bank’s role in the Korea financial services ecosystem, the relationship between fintechs and incumbent financial institutions in Korea, how enabling technologies like AI are creating new opportunities for innovation, and what we can expect from IBK this year and beyond.
Founded in 1961, Industrial Bank of Korea is headquartered in the Jung-gu District of Seoul, South Korea. Kim Sung-tae was appointed Chief Executive Officer in 2023.
Industrial Bank of Korea (IBK) won the “Best Mobile Financial App” category at the 2024 Finovate Awards. What sets your app apart from competitors?
Kim Sung-tae: i-ONE Bank reflects our unwavering commitment to the customer. While all banking apps in Korea may appear similar, few demonstrate consistency and dedication to providing customer-centric services.
Yet, i-ONE Bank has always put the customer first since its inception, believing that “all the answers lie with the customer.” As a result, the app has consistently ranked first in the domestic financial app category on the two major app store platforms (iOS and Android) — a success that has culminated in winning the Best Financial Mobile App at the 2024 Finovate Awards.
Who does IBK primarily serve?
Kim Sung-tae: IBK serves both individual and corporate customers. As of now, approximately 17 million individuals and 2.2 million companies use IBK’s financial services.
What do you think is the most important banking service for customers today, and how has IBK responded to that need?
Kim Sung-tae: In the past, retail customers in Korea chose banks based on the proximity to their workplace or home. These days, however, we found a significant shift in their selection criteria: customers prioritize mobile banking convenience in selecting their primary bank. To respond to this changing need, we adopted “Easier, Faster, and More Secure Banking” as our slogan and positioned i-ONE Bank as the flagship service of our mobile channel.
i-ONE Bank delivers a full range of commercial banking products and services, including deposits, loans, investments, and pensions (Individual Retirement Pensions) through an open finance platform. It allows customers to view all of their financial transaction information dispersed at multiple institutions, such as banks, credit card issuers, and brokerages, on a single page. In addition, it offers much acclaimed personal finance management (PFM) services that automatically record spending history for easy control of customers’ personal finances.
Do you think emerging technologies such as AI play a significant role? Is this an area of innovation for the bank?
Kim Sung-tae: Absolutely. Upon taking office as CEO, I introduced “Value Finance” as my management philosophy, emphasizing that IBK must go beyond profit generation to enhance the value to all stakeholders in consideration of not just the customers, but also the entire community and even the environment.
AI is an innovative technology with the potential to elevate the value of IBK’s diverse stakeholders. We are currently running the IBK GPT Project which aims to leverage AI to improve operational productivity and promote digital transformation in customer services by, for instance, introducing conversational banking.
How would you describe the financial services environment in Korea? Is the relationship between fintechs and banks more collaborative or competitive?
Kim Sung-tae: The financial services environment in Korea is highly dynamic, characterized by both competition and collaboration between traditional banks and fintech companies. IBK strives to create synergies between the two by focusing on the areas where they can be complementary to each other, with a goal of fostering a sound ecosystem for greater financial innovation. For example, we operate IBK Changgong, an incubator program to support innovative tech startups, and IBK 1st Lab to help commercialization of the startups’ solutions.
What major initiatives does IBK have planned for 2025?
Kim Sung-tae: In 2025, IBK plans to transform i-ONE Bank into an open platform based on banking. By leveraging the two-side market nature of platforms, we aim to expand our end-user base for banking services while also increasing collaboration with partner companies to diversify non-financial content offerings. Through i-ONE Bank, we will create a virtuous circle that delivers tangible value to both customers and partner companies, and maximize network effects, which will ultimately propel i-ONE Bank to be a super app.
