KB Kookmin Bank is teaming up with SAP Korea to build a service that lets corporate clients handle banking tasks inside their enterprise resource planning systems.
The bank said on the 21st that it signed an agreement with SAP Korea on the 18th to jointly build an ERP embedded finance ecosystem. SAP Korea is the Korean unit of global ERP provider SAP and offers enterprise resource management, cloud, data and artificial intelligence-based digital transformation solutions.
At the core of the agreement is the direct integration of KB Kookmin Bank's financial functions into the SAP ERP systems used by companies. Previously, corporate clients had to use their ERP and the bank's system separately to transfer funds or check balances. Under the new arrangement, they will be able to complete such tasks without leaving the ERP screen.
KB Kookmin Bank plans to strengthen its corporate transaction banking through the ERP-linked embedded finance service. Transaction banking refers to services in which a bank supports corporate cash management, payments and settlement, and trade finance. The two companies also plan to pursue joint marketing to win new clients by tapping their respective corporate customer bases.
"By combining SAP Korea's ERP competitiveness with KB Kookmin Bank's embedded finance capabilities, we will create an environment in which corporate clients can use financial services more conveniently," KB Kookmin Bank CEO Lee Hwan-joo said.
