Commercial banks are setting up big data centers and platforms based on a belief that a differentiated sales strategy using this technology will be a decisive factor in their future earnings.
Their big data centers are said to forecast possible earnings and provide a computerized algorithm to calculate investment patterns for its corporate and wealthy customers by utilizing their vast transaction data within the banks.
Of the nation's commercial banks, Shinhan Bank is the first lender to open a big data center. Scouting Korea Banking Institute professor Kim Chul-ki who has served various posts in finance for about 15 years at home and abroad, including Bank of America Merrill Lynch, the bank opened the center with 32 related experts in April 2016.
"The business supporting system developed by the center is applied to the bank's various operations, including the Shinhan Wealth Management and corporate sales," Kim said.
"Shinhan Big Data Center has recently established an integrated system that monitors and manages customers' transaction and private information via the bank's 22 banking channels including call centers and mobile banking."
Following Shinhan Bank's lead, other lenders set up their own big data centers and have since developed related computerized platforms.
In January, KB Kookmin Bank established a department for data analysis, allocating 25 related experts to study customers' finance patterns to respond quickly to their needs.
KEB Hana Bank also opened its first big data center last March and a second one in January. In March, the two centers jointly introduced a visualized big data platform to analyze the bank's earnings data.
The lender said it will also roll out an algorithm to study its customers' financial activities to help prevent them from exiting the bank's financial products.
Last month, Woori Bank established a big data center with 21 related experts.
"The center will help reprocess existing information into profitable resources," said a Woori Bank official. "We will also set up a database based on what we have learned from customer counseling. It will provide future opportunities in our operations."
NH Nonghyup said it will introduce a similar big data center, the NH Big Square, to help analyze its business operations.