The Industrial Bank of Korea is set to replace its dated computer network with a new comprehensive framework said to be safer, more advanced and less expensive in a move to provide advanced banking services, the bank announced on Sunday.
The state-run bank is currently scrapping and uninstalling outdated hardware and software as a part of its efforts to shift from the existing mainframe operating system to a Unix-based system.
The IBK test ran its new computing system at 10 branches on Saturday, and is now aiming to fully introduce it in October across all of its branches, the bank said.
Kwon Seon-joo (left), CEO of Industrial Bank of Korea, looks at a computer screen at one of the bank’s branches in Gyeonggi Province during a trial run for the bank’s new IT system Saturday. ( IBK)
The new network system is more competitive in terms of price and technology over the existing network, Kim Hong-jun, an IT employee at the bank, said.
“The change is necessary to provide customers with advanced banking services and develop our long-term growth strategies,” the official told The Korea Herald.
Implementing the newer and more advanced computing system is also in line with the bank’s plans for strengthening its online security in the wake of a string of customer data leaks at major financial institutions, including banks and credit card issuers, the bank said.
Since 2012, the bank has invested some 250 billion won ($246 million) to upgrade and enhance its IT system.
“We’re looking to complete the new computing system by October after a three-month test period at over 650 branches,” a spokesman at the bank said.
Unlike many of its local rivals, IBK has a relatively small retail bank and is more focused on financing small and medium-sized firms than big corporate clients.
In recent years, the state-run bank has also been building up its retail banking services and is looking toward further expansion overseas. IBK currently runs over 20 branches in eight countries and operates networks with 14 foreign banks.
By Oh Kyu-wook (596story@heraldcorp.com)