Finance is in AX
Regional Financial Triad Focuses on 'Joint Response' for AI Transformation

[비즈한국] The financial industry has entered a massive wave of change known as AI Transformation (AX). Adopting AI in core areas such as data analysis, risk management, and asset management has emerged not as a choice, but as a task that determines survival. With the rapid development of generative AI technology and government policy support, financial companies are moving beyond digital transformation (DX) to reshape their business processes, organizational structures, and service strategies centered on AI. We examine the flow of AI transformation in the financial sector and explore the future direction of the financial industry led by AI through strategies and application cases in each field.

Three regionally based financial holding companies (BNK, JB, and iM Financial) are also committed to Artificial Intelligence (AI) transformation. Interestingly, the three holding companies are cooperating by creating a 'joint AI governance' aimed at the safe and reliable use of AI technology. This is interpreted as a strategy to efficiently respond to the offensive of large financial holding companies that possess greater human and capital resources. AI governance refers to the standards or policies managed by an organization to ensure the safe and ethical development and operation of AI. The three holding companies have been pushing for this since they issued a notice in April 2025 seeking a service provider for the 'Financial Group AI Governance Establishment Joint Consulting' project.

It has been confirmed that the three companies, BNK, JB, and iM Financial, have completed the establishment of their joint AI governance and are currently applying it. JB Financial, which led the selection of the consulting firm, stated, "The joint AI governance was conducted with the goals of establishing internal standard regulations related to AI user ethics, building internal control processes, and preparing consumer protection mechanisms," adding, "Through the joint consulting project, we have responded to the Basic AI Act finalized in January and are continuously expanding our areas of cooperation."

The three holding groups regularly form digital and IT-related consultative bodies to respond to AI issues jointly. As they mentioned when announcing the promotion of joint AI governance that it would "contribute to the expansion of future innovative financial service applications," the possibility of the three companies launching joint AI services is also being discussed.

Looking at the consulting notice for building AI governance, the project purpose consists of five major areas: AI governance establishment, review and presentation of execution strategies for ethical and legal compliance regarding AI use and utilization, establishment of AI risk management and sustainable operation management plans, optimization of AI-related policies and processes, and strengthening AI governance capabilities within the organization. The target subsidiaries include the holding companies, Busan Bank, and Kyongnam Bank for BNK Financial; the holding company and iM Bank for iM Financial; and the holding company and Kwangju Bank for JB Financial.

Specifically, the scope of the project includes: analyzing AI governance-related laws such as the Basic AI Act, the Personal Information Protection Act, and the Financial Consumer Protection Act, and reviewing guidelines from regulatory agencies; preparing detailed contents such as the direction, purpose, and organizational structure of AI governance; improving AI operational efficiency through cost management analysis, performance evaluation system establishment, and obstacle response plans during AI implementation; and defining methodology for conducting AI Proof of Concept (PoC) services.

The three holding companies are also establishing and actively implementing AX strategies at the individual group level. JB Financial is promoting group-wide AI internalization through its AX Strategy Department. In late February, JB Financial held its first management strategy meeting for 2026, attended by Chairman Kim Ki-hong, executives of each subsidiary, and department heads. AX internalization and execution were mentioned as the 2026 goal during this meeting.

Chairman Kim Ki-hong stated at the strategy meeting, "To make this year the first year for AX to take root across the entire group, company-wide encouragement is necessary," adding, "Changes and innovation are needed to improve the constitutional health centered on profitability." On that day, JB Financial held an AI competition for employees and provided prize money to the winners to accelerate AX implementation.

In December 2025, JB Financial signed a Memorandum of Understanding (MOU) with Naver Cloud through its three subsidiaries—Jeonbuk Bank, Kwangju Bank, and JB Woori Capital—to develop AI-based financial services. Specifically, they are discussing ways to utilize AI across overall financial tasks such as corporate loan counseling, screening, and post-management using Naver Cloud's large language model (LLM), HyperCLOVA X. For instance, AI would formalize data such as counseling information and documents; in the screening process, AI would summarize and analyze applications and transaction information to support judgment; and after approval, the AI would automatically generate the basis for the decision.

BNK Financial pursued AX transformation in line with its major management strategy for the second half of 2025, 'Strengthening AI Digital Finance.' Key contents include establishing AI strategic direction to strengthen digital competitiveness, consulting for AI governance establishment to protect organizations, employees, and customers from risks caused by AI technology introduction, introducing a group-wide generative AI platform, and holding hackathon competitions to foster an AI/digital innovation culture. Accordingly, they are developing a group-wide platform in accordance with financial authority guidelines and held their first hackathon last December, where they selected ideas related to financial innovation using AI and blockchain.

BNK Financial also organized a team to respond to the government's AI activation policy. This occurred with the launch of the 'Future Digital Strategy Research Organization,' composed of industry-academia figures and external experts, in December 2025. The Future Digital Strategy Research Organization serves as the control tower for BNK Financial's AI and digital sectors, divided into an 'AI Strategy Division' and a 'Digital Asset Strategy Division,' researching efficiency using generative AI and business models related to stablecoins.

iM Financial is promoting AX through subsidiaries such as iM Bank, Newsystock, and iM Data System. At the end of 2025, iM Bank established the 'AX Promotion Department' under the Digital Biz Group to specialize in new technologies such as AI technology internalization and blockchain. During the first half of 2026 management strategy meeting, iM Bank announced that it would promote digital constitutional conversion by applying AI to overall processes, including decision-making and sales, centered on the AX Promotion Department.

iM Data System, iM Financial's IT subsidiary, signed a partnership in July of last year with Loman, an AI-based document processing company, to accelerate digital transformation in the financial sector. Newsystock, a fintech company under iM Financial that operates the quant investment platform GenPort, is applying AI technology to GenPort and launched the investment strategy simulation service 'Port AI' last February.