Hana Bank has launched an artificial intelligence (AI) pension investment and withdrawal management service, marking a significant milestone as the first bank in South Korea to provide a comprehensive solution targeting retirement payouts. The announcement was made on Wednesday, coinciding with increasing concerns regarding the management of pension assets among older adults, particularly in the context of rising life expectancy and market volatility, which elevate the risk of funds diminishing too rapidly.
The newly introduced service is tailored for customers holding individual retirement pensions. By leveraging AI, the service proposes portfolio strategies aimed at securing a stable cash flow during the withdrawal period while balancing investment returns and associated risks. Unlike traditional pension services that prioritize the growth of funds, this innovative offering centers on withdrawal capabilities during mid-subscription phases.
This service is grounded in a goal-based investing framework developed in partnership with Hana Financial Group‘s technology subsidiary, Hana TI. The system integrates product recommendations, advanced asset allocation techniques, and shorter rebalancing cycles. It also performs scenario-based analyses to forecast how portfolios may perform under varying market conditions.
Investment strategies are customized for each customer, taking into consideration when, how often, and how much they plan to withdraw from their pensions. Additionally, customers can preset their risk tolerance, allowing the system to adapt as market conditions change. The AI continually adjusts portfolios to ensure clients maintain sustainable income streams while responding to fluctuations in financial markets.
Initially, Hana Bank rolled out the system to provide in-person consultations at branches, assisting customers with AI-generated recommendations. However, the bank has since expanded access to include services via the Hana One Q mobile banking app and its online banking platform. This digital expansion is particularly advantageous for customers facing challenges in visiting physical branches, such as older clients and those residing in remote areas.
“The service enables customized asset management, aided by a six-month rebalancing period to reflect market fluctuations,” the bank stated. “As life expectancy continues to rise, pension services have become just as important as building retirement savings.” This proactive approach reflects a broader trend within the financial services industry, as institutions increasingly recognize the need for more dynamic and personalized retirement solutions.
The introduction of AI-driven tools for pension management also positions Hana Bank at the forefront of a rapidly evolving financial landscape. As fintech continues to gain traction, the integration of advanced technologies into traditional banking services is expected to enhance customer experience and engagement.
Looking ahead, the potential for further enhancements to the AI pension service could lead to even more sophisticated financial planning tools, enabling customers to navigate their retirement with greater confidence and security. The move underscores an urgent need for innovation in financial services as demographic shifts and economic uncertainties redefine the retirement landscape.
For more information on Hana Bank and its services, visit Hana Bank.
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