Potential Growth in South Korean banks
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24 April 2014KyongSun Kong
At first, I offer my condolences for the loss and missing of beloved families or friends at the South Korean ferry disaster. South Korean banks have faced difficulties in remaining the steady growth in the recent years. There are some reasons for this – a low economic growth and a low interest-rate environment. Banks in South Korea took action to reduce their staff to cut down the cost. The Asia Economy Daily said that 700 staff reduced in South Korean bank industry last year. Alsonches, a number of banks are considering or start reducing branches. In such a small country, there are thousands of bank branches at this moment. Celent believes that South Korean banks have a number of ways for the future growth with their experiences. For example, they can expand their business model or IT models to overseas. They have been trying these strategies for decades but it is difficult to find a “success” story. They should seek the various ways to bring their businesses to overseas. In the process, they may make some changes on their business models for oveaseas expansion. In South Korea, mobile banking services are advanced and activated. Celent believes that they have a number of case studies for mobile banking and mobile payment. They may introduce these to overseas, not only developing countries but advanced countries. In conclusion, they should study regulations, acceptable business models and IT trends in a country and should consider and study how their case studies are applied to each country beforehand.