Banks are expanding Internet banking services tailored to the needs of their corporate clients to attract more companies with high credit standing and develop new fee earnings, the Bank of Korea said on Sunday (Nov. 20).
Kookmin Bank and the Industrial Bank of Korea lead the trend of providing ``Cyber Branch services to corporate clients. Banks install computer servers at the offices of corporate clients and link them to Internet banking systems to provide comprehensive and customized cash management services.
Kookmin started the service for the first time last November and was providing the cyber banking services to 44 companies as of the end of September.
The Industrial Bank of Korea started the corporate Internet banking services last July and has expanded its number of corporate clients to 64.
Kookmin and Industrial Bank are planning to expand the number of corporate clients to as many as 200 each by the end of the year.
The move is a response to the rising demand for online banking from companies. Companies are reacting positively as banks offer a wide range of banking services, including cash management, payment of bills and even tax management.
Banks, which had been lukewarm to building online branches for corporate clients, are now expanding online corporate banking services. Woori Bank, Shinhan and other banks are expected to introduce the cyber branches for their corporate clients.
``Banks are turning their eyes to Internet banking for corporate clients as corporate loan demand falls, the report said.
