Send to

[Global Finance Awards] JB Financial shapes future of digital banking

Digital Innovator / JB Financial Group

Nov. 30, 2023 - 11:33 By Song Jung-hyun
JB Financial Group Chairman Kim Ki-hong (JB Financial Group)

JB Financial Group has accelerated its digital transformation efforts to bring more convenient options to a broader customer base by seeking innovative collaboration projects.

Under the leadership of Kim Ki-hong, the group's chairman, the group has achieved record earnings over the past few years. To further expand its presence in the market and customer base, the banking group also tapped into the fintech and online banking industries.

In July, it inked a partnership agreement with Seoul-based fintech company Finda and acquired a 15 percent stake, becoming one of its major shareholders. Together, they plan to develop various non-face-to-face products and alternative credit evaluation models.

Is subsidiary Gwangju Bank plans to launch a joint loan product with Korea's internet-only bank Toss Bank by the end of the year. They will work together on assessing loan applications and fund raising.

“Going forward, we will actively secure new growth engines by continuing to collaborate with various companies across fintech and digital sectors," a JB Financial Group official stated.

Since Kim took the helm in 2019, the financial group has been posting solid earnings. In his first year of office, the company reported a net profit of 341.9 billion won, soaring by over 1 billion won from a year earlier.

Its net profit has grown at a rapid pace in the past three years from 363.5 billion won in 2020 to hit a record high of 601 billion won last year.

The group has also demonstrated financial soundness through the Common Equity Tier 1 Ratio -- a key measure for an institution's financial stability. After surpassing 9.5 percent in 2019, the recommended level by Korea’s financial authority, it continued to show an upward trend, logging 10.5 percent in 2020; 10.30 percent in 2021; and 12.45 percent in 2022.

Its profitability has also reached the industry’s highest level. Ratios in return on equity and return on assets reached 13.88 percent and 1.05 percent, respectively last year, having more than doubled from the initial 6.44 percent and 0.39 percent logged in 2013.