Shinhan Bank Strengthens Its Position as a Leading Bank in Institutional Sales

Shinhan Bank has successfully retained its position as a leader in institutional sales by securing the Seoul City treasury accounts, valued at over 50 trillion won. With major bids for the Incheon City treasury and other large institutions scheduled for the second half of the year, attention is focused on whether Shinhan can maintain its title as a leading bank.

According to the financial sector on May 18, Shinhan Bank was selected as a priority candidate for both the first and second treasury accounts during the Seoul City treasury designation review committee held on May 12. The bank received top scores of 973.904 for the first treasury and 925.760 for the second treasury.

In this bidding process, Shinhan Bank, Woori Bank, KB Kookmin Bank, and Hana Bank all participated for the first and second treasury accounts, with Shinhan successfully retaining both. The total budget for Seoul City this year is 51.4778 trillion won, the largest among local governments nationwide.

The Seoul City treasury accounts are not only symbolic but also crucial for evaluating institutional sales competitiveness in future bids for local government, education offices, and public institutions. By securing a stable source of funding worth tens of trillions of won over several years, Shinhan Bank has gained a significant advantage in the competition among leading banks.

As government policies on household loan management have hindered the expansion of interest income, institutional sales have emerged as a key strategy for securing large deposits and future clients.

Shinhan Bank is accelerating its institutional sales efforts through the newly established Institutional and Partnership Sales Group, formed during a reorganization at the end of last year. After being reselected as the third operator for the National Love Card, the bank captured more than half of all issuances in the first quarter of this year. The Legal Fund Payment Center supports the management of court-related funds, including deposits, delivery fees, and court custody funds. The average balance of court custody funds has increased from 1.8 trillion won in 2021 to 2.8 trillion won last year, with Shinhan reportedly handling over 60% of this amount.

Launched in 2022, the Heyoung Campus mobile platform for university students is currently used by over 130 universities. Recently, Shinhan Bank signed a memorandum of understanding with Seoul National University for long-term mutual growth. Universities are seen as a key channel for banks to secure future clients.

A financial sector official stated, "The importance of institutional sales, which can secure large funds and clients amid the trend of household loan management, will continue to rise. With bids for the Incheon City treasury and others expected in the second half of the year, strategic competition is likely to unfold."