Learning from the Approach of Smartphone Banking Pioneer Hana Bank

by KyongSun Kong, February 28, 2011
Case Studies
Asia-Pacific

Abstract

Financial services available on smartphones are increasingly being thrust into the limelight. While the nascent field of smartphone banking has many issues that will need to be resolved moving into the future, Hana Bank’s approach in launching its smartphone banking service is instructive. Hana Bank’s experience has highlighted the need for effective marketing above and beyond innovative services and functions to ensure success.

Celent tackles this topic in its new report, Learning from the Approach of Smartphone Banking Pioneer Hana Bank. This report offers an in-depth analysis of Hana Bank’s smartphone banking service, which has been the focus of attention as the first service of its kind in South Korea. However, being the first to market is not the only reason this service has attracted attention. Rather, it is Hana Bank’s array of innovative services—notably multiple online functions that include personal financial management as well as a marketing strategy hinging on a novel coupon service—that have further thrust it into the spotlight.

A year has elapsed since Hana Bank launched its smartphone banking service. The subscriber base continues to grow, fueled both by the attractive service lineup and the bank's innovative marketing strategy. The bank’s unique approach has allowed it to disseminate its message by leveraging the power of cutting-edge communication tools, such as social network services (SNS) and QR codes, cementing its reputation as a leader in the field.

“Hana Bank has used SNS and other modern-day marketing methods while actively harnessing the most advanced tools available in cobbling together its innovative service lineup. In this way, the bank has succeeded in showcasing the advanced nature of smartphone banking and attracting customers,” says KyongSun Kong, author of this report and an analyst with Celent's Asian Financial Services Group.

This report offers a penetrating analysis of the content of Hana Bank’s smartphone banking services while scrutinizing the marketing methods and future outlook of the service. It also addresses the important issue of security and unveils how Hana Bank tackled this issue, in the process creating what has become the de facto national standard for smartphone banking services in South Korea.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Hana Bank

5

Mobile Banking in South Korea

7

 

Mobile Banking Customer Base

8

 

Burgeoning Popularity of Smartphones in South Korea

9

Developing the Business Model

12

 

Setting Goals

12

 

From Development to Market

13

 

Business Targets to Secure the Initial Budget

15

 

Standard for Success

16

Hana Bank’s Smartphone Banking

17

Hana Bank’s Unique Approach

22

 

Shaking Things Up with Innovative Services

22

 

Proactive Marketing

27

 

Future Plans

29

The Security Challenge

31

 

Current Situation

31

 

Solutions

31

Conclusion

33

Leveraging Celent’s Expertise

35

 

Support for Financial Institutions

35

 

Support for Vendors

35

Related Celent Research

36

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