KB Kookmin Bank CEO Hur Yin



By Park Hyong-ki



All local and global banks are seeking one thing ― digital transformation.



It will be a long, hard process to change everything ― the way they interact with customers, use new technologies and develop human resources.



And KB Kookmin Bank CEO Hur Yin knows this for sure, saying that transformation doesn't happen overnight because people can't change overnight.



Whenever he receives a question about his digital plan, he said he would always respond: "We don't have a target when it comes to digital transformation. This will be an ongoing project. And we've got a long way to go."



The bank will have to take steps ― sometimes big and sometimes small ― through partnerships with tech giants and venture startups as part of the long journey.



But it would become meaningless for KB Kookmin if it tries to forge ties without a specific mission.



For instance, the bank partnered with Amazon Web Services and the Financial Supervisory Service (FSS) to tackle phishing and "smishing" ― a portmanteau of SMS and phishing. They developed an application using artificial intelligence (AI) to stop the scams.



It is currently working with Naver, the country's largest portal, to develop an AI-based search engine with voice command, enabling customers to easily navigate financial goods and services.



"I believe we can generate more value if we seek tech partnerships in specific areas to solve specific problems rather than broad ones," Hur said.



Its alliances with startups will take after this idea.



The bank seeks to instill startups' entrepreneurial culture in KB Kookmin as part of its digital transformation.



But Hur said recently it will not do it by acquiring startups and immediately absorbing their culture.



It will have to take "small steps" in the beginning by making equity investments in startups or establishing ties through which the bank can learn to work together and develop a new organizational culture.



In the new digital age, bank employees will not be able to compete with AI, which will be able to offer a better variety of financial services to customers.



This does not mean people will have to become generalists, but specialists who also have a certain level of knowledge in areas beyond their expertise.



Like other banks, KB Kookmin seeks to pursue universal banking.



And having resources of such specialists, who are not afraid to pick up new skills in the age of AI, will help the bank boost universal banking and provide differentiated services.



"We need to take action to make a transformation. Those that have taken action rather than just talking about it will have a higher chance of becoming a winner," Hur said.



"I believe the market will start to see a winner in three years."

