Shinhan Bank's headquarters in Jung-gu, Seoul. (Shinhan Bank)

South Korea’s Shinhan Bank said Wednesday that it has embarked on a new business venture to provide digital finance consulting services to global peers, with Japan’s Tokyo Kiraboshi Financial Group as its first client.

“This digital finance consulting contract with Tokyo Kiraboshi Financial Group holds significance in that Shinhan Bank's digital competitiveness has been recognized on the global stage,” the lender said in a statement.

Shinhan’s decision to enter the new area of business aims to provide consultancy services to its peers abroad based on accumulated digital transformation experience, as a myriad of foreign firms have requested the Korean bank to share its innovative solutions.

“We will expand our consulting business by broadening our network with overseas financial companies and establishing close cooperative relations to strengthen our position in the global financial market,” it said.

Since Shinhan and Kiraboshi signed an agreement to bolster their partnership in May 2023, they have been working together on various areas including digitalization, information technology and global business.

Through this consulting contract, Shinhan Bank plans to review the direction of digital-based retail finance for the continued growth of Kiraboshi and consult on implementation plans.

Tokyo Kiraboshi Financial Group engages in the management of its subsidiaries and the provision of financial services. Its flagship subsidiary, Kiraboshi Bank, has about 105 branches, mainly in the Japanese metropolitan area. It also owns internet-only UI Bank.

In December last year, Shinhan inked a deal to develop a digital platform for UI Bank, which included a banking application upgrade and banking API, software that allows users to access financial services within non-fintech software solutions.

Shinhan Super SOL, a mobile application encompassing the primary functions of Shinhan Financial Group’s subsidiaries, from banking and digital payment to securities trading and insurance, has garnered 4.8 million monthly active users as of June.

While gaining an edge in banking technology, Shinhan has sought to flex its muscles in Asian financial markets showing high interest in advancing digital technology.

In Vietnam, the Korean bank launched Future Bank Group in August, a dedicated digital business division that will drive the digital growth strategy and retail business of Shinhan Bank Vietnam.

Shinhan’s Japanese subsidiary SBJ Bank has established SBJ DNX, a company specializing in digital banking and information and communications technology, in 2020.