1. Management Information System 2006, Spring Shinhan Bank’s CRM Seong Yun Mo Park Ji Yong Oh Chang Hyup MIS Term Project #1 IME 20071253 IME 20080891 IME 20090934

2. Page 2 Contents 1. S hinhan Bank 2. I mportance of C ustomer for B ank 3. W hat is CRM ? 4. H istory of S hinhan B ank’s CRM 5. Shinhan Bank’s CRM (1) SRM (2) CROSS (3) G-CRM (4) Reorganization of CRM 6. P erformance of SRMS 7. C onclusion

3. Page 3 1. Shinhan Bank High Assets Quality High Assets Quality Efficiency High Standards of Customer Service High Standards of Customer Service 1982: Shinhan Bank began operation 1989: It was listed on the Korea Exchange It has 864 branches over 10752 employees Customer Satisfaction Customer Satisfaction Shinhan Bank has a reputation as one of the most progressive commercial banks

4. Page 4 2. Importance of Customer for Bank Financial Product Intangibility Inseparability Individual Marketing System Individual Marketing System Lack of Special Identity Lack of Special Identity Geographical Dispersion Geographical Dispersion Growth must Be Balanced With Risk Growth must Be Balanced With Risk Customer is important factor for Bank (Source: Arthur Median) Customer is Important

5. Page 5 3. What is CRM? A business strategy which relate to techniques and methods for attracting and retaining customers with three components Managing valuable customer in a long-term view Create a Database Analysis Customer Selection Customer Targeting Relationship Marketing Privacy Issues Metrics CRM Framework CRM People Process Technology

6. Page 6 4. History of Shinhan Bank’s CRM Introduction of SRMS Introduction of SRMS Building up G-CRM Building up G-CRM Reorganization of CRM Reorganization of CRM SRMS (CRM) – Shinhan Relationship Management System G-CRM – Geographic Information System + CRM CROSS(Integrated group CRM) -Customer Relationship Optimization System for Shinhan group -EDW Building up CROSS Building up CROSS 2001 2002 2005 2008 2010

7. Page 7 5. Shinhan Bank’s CRM (1) SRMS SRMS – Shinhan Relationship Management System S R M S Catching Symptom of Customer Secession Scheduling for Salespeople Customized Portfolio (Source: 성공적인 CRM 추진전략과 구축 방안에 관한 연구 ) Introduction of SRMS Introduction of SRMS Building up G-CRM Building up G-CRM Reorganization of CRM Reorganization of CRM Building up CROSS Building up CROSS

8. Page 8 5. Shinhan Bank’s CRM (1) SRMS Back-end Office System Middle Office System Front Office System Data Collecting and Auditing Mining DB Analysis CRM Mart CRM DB Internal Data External Data Visualized Answer tool Visualized Campaign Evaluating tool Visualized Campaign Design tool Data Mining System OLAP System Campaign Management System Call Center Branch Internet Banking & E-mail CD / ATM TM DMI Customers Customer Information Campaign Information Sampling Transformation Transmission (Source: 금융업계 사례연구, 신한은행, Teradata) Introduction of SRMS Introduction of SRMS Building up G-CRM Building up G-CRM Reorganization of CRM Reorganization of CRM Building up CROSS Building up CROSS

9. Page 9 5. Shinhan Bank’s CRM (2) CROSS Shinhan Bank Shinhan Stock Shinhan Card Jeju Bank Shinhan Gruop Integrated campaign Integrated Process Integrated Call-center Business Office (Source: 금융지주 모델에서의 그룹 CRM 전략과 운용, 신한은행 ) Introduction of SRMS Introduction of SRMS Building up G-CRM Building up G-CRM Reorganization of CRM Reorganization of CRM Building up CROSS Building up CROSS CROSS – Customer Relationship Optimization System for Shinhan group

10. Page 10 5. Shinhan Bank’s CRM (2) CROSS (Source: 금융지주 모델에서의 그룹 CRM 전략과 운용, 신한은행 ) Shinhan Bank DW Shinhan Stock DW Shinhan Card DW Shinhan Group DW(EDW) Introduction of SRMS Introduction of SRMS Building up G-CRM Building up G-CRM Reorganization of CRM Reorganization of CRM Building up CROSS Building up CROSS

11. Page 11 Strategic Marketing with regionalism Discovering a Potential Customer Optimization of Channel Strategy Man to Man Support Service for Customer 5. Shinhan Bank’s CRM (3) G-CRM G-CRM – Fusion of GIS and CRM Expected effectiveness of G-CRM Introduction of SRMS Introduction of SRMS Building up G-CRM Building up G-CRM Reorganization of CRM Reorganization of CRM Building up CROSS Building up CROSS

12. Page 12 Introduction of SRMS Introduction of SRMS Building up G-CRM Building up G-CRM Reorganization of CRM Reorganization of CRM Building up CROSS Building up CROSS 5. Shinhan Bank’s CRM (4) Reorganization of CRM Event Based Customer Management(EBCM) Sales opportunities management System for recommendation of optimal product Reorganization of integrated customer management CRM monitoring system

13. Page 13 6. Performance of CRM Staff can focus their original task Target marketing is available United customer managing is available Result of Shinhan’s CRM United performance of evaluation is available Establishing strategy in customer’s view is available (Source: 성공적인 CRM 추진전략과 구축 방안에 관한 연 구 )

14. Page 14 6. Performance of CRM Starting CRM

15. Page 15 6. Performance of CRM By Korea Consumer Forum, Grand prize in bank sector for the 7 th year straight By Korea Standard Association, Service Quality Index 1st for the 8 th year straight By Korea Management Association, Most admired company in bank sector for the 8 th year straight

16. Page 16 7. Conclusion Shinhan’s SIS gives Shinhan strategic advantage! G-CRMSRMSCROSS

17. Page 17 Reference 성공적인 CRM 추진전략과 구축 방안에 관한 연구 – 금융산업을 중심으로, 김종순, 2003 금융업계 사례연구, 신한은행, Teradata, 서춘석, 2002 CRM 주요 성공 전략과 신한금융지주 GDW/CRM Project, 신한은행, 이인규 금융지주 모델에서의 그룹 CRM 전략과 운용, 신한은행, 백홍근 Framework for CRM, Harvard Business Review Shinhan Bank Site http://www.shinhanbank.comhttp://www.shinhanbank.com

18. Page 18 Q & A