NongHyup Bank to Maximize Risk Management with AI-Based Credit Supervision

President Kang Tae-young of NongHyup Bank. (Photos: NongHyup Bank)

NongHyup Bank announced on March 24 that it will introduce an AI-based credit supervision system to detect potential insolvencies in advance, and will respond to crises proactively in rapidly changing financial environments.

The new credit supervision system is the first to introduce an early warning model based on machine learning in the financial sector.

The supervision algorithm derived based on data analyzed from past supervision reports will be applied to an ‘AI supervisor’ and the AI supervisor will automatically select superior borrowers.

In addition, for high-risk borrowers, it predicts the risk of a default in advance and provides indicators needed for risk management.

NongHyup Bank expects to improve the efficiency of its credit supervision through the automation of the supervision process and strengthen internal control over credit processing by establishing a system-based monitoring system.

Digital Currency Test “Project Han River”

NongHyup Bank announced on March 24 that it is recruiting users to participate in a digital currency test dubbed “the Project Han River” organized by the Bank of Korea, the Financial Services Commission, and the Financial Supervisory Service.

The Project Han River is a government-led test to check the usability of digital currencies.

Major banks including NongHyup Bank will jointly participate in the test which will run from April to June for 100,000 ordinary people.

Users who wish to participate can apply online (https://abit.ly/mvu1rs) or on the All One Bank event page.

Starting April 1, they will be able to convert their deposit tokens for three months and use them to purchase items at six Hanaro Mart branches (Gwangju Distribution Center, Bangi Station, Busan Branch, Seodaemun Branch, Seongnam Distribution Center and Cheongju Branch) and designated retailers such as 7-Eleven, IDIYA, Kyobo Bookstore and Hyundai Home Shopping.

“The Han River Project is a great opportunity for people to try digital currencies firsthand,” a NongHyup Bank official said.

“We will make every effort to establish digital currency through cooperation with government authorities.”

Meanwhile, NongHyup Bank will also hold a prize giving promotion for customers who participate in the project.

On April 1, NongHyup Bank holds the ‘Customer-Centered Wealth Management Forum’ at its headquarters in Seoul with the participation of about 200 employees from the investment products and asset management division including Vice President Lee Young-woo.

Customer-Centered Asset Management Forum

NongHyup Bank announced on April 1 that it held the Customer-Centered Asset Management Forum at its headquarters in Jung-gu, Seoul with the attendance of more than 200 employees from the investment product and asset management divisions.

At the forum, NongHyup Bank shared the results of the WM Customer Insight Survey conducted by the NH Financial Research Institute in February and discussed the direction of its asset management strategy centered on customer value and customer needs.

The WM Customer Insight Survey found that respondents considered expertise in wealth management services and additional services other than wealth management (real estate, tax consultation and more) first in choosing a financial company for wealth management.

NongHyup Bank’s investment product and wealth management divisions plan to focus on strengthening its capabilities in wealth management services using its investment advisory business license.

“The essence of asset management starts with an understanding of customers,” said Lee Young-woo in charge of Investment Products and Asset Management Division of NH Bank.

“We will continue to provide differentiated asset management services and further strengthen trust with customers by set up strategies based on customer insights.”