January 18, 2023

Korea’s Digital CPI (Credit Protection Insurance) Platform is one of 10 Innovation Ambassadors 2022, selected from 86 initiatives in 21 countries and 24 entities. Discover how Hong Min Yun, Won Hee Ye and their team created a new business model leveraging a rising Fintech.

Could you introduce yourself briefly?

Won Hee YE: Hi, my name is Won Hee Ye and I am a leader of Business Development team at BNP Paribas Cardif Korea. My role is to seek for new business opportunities and develop those opportunities into actual digital infrastructure, partnerships and promote additional new sales. As a relationship manager(RM) to FINDA project, I am working on overall FINDA project management which includes digital CPI platform business and upcoming fintech de-regulation projects (FINDA’s life insurance agency market penetration through exclusivity contract with BNP Paribas Cardif CPI products).

Hong Min YUN: Hello, I'm the online marketing manager at BNP Paribas Cardif Korea. I'm responsible for planning and optimizing online platforms, analyzing customer data, and leading to performance.

Our project team is made by the cooperation of our GA department and marketing department. When our GA establishes a partner alliance and the overall business model, marketing supports and actualizes it.

Our team’s strength is that when we face an issue, we proceed with sufficient prior consultation and make decisions which many members can agree with.

Tell us about your project: what is it about and how it came about?

Its main focus is to create a new B2B2C business model based on digital environment expansion and Fintech companies’ growth.

It is about efforts to create new business models such as searching partners, developing products, making customer journeys, and establishing platforms.

As digital influence and the consumption of online financial products increased, the importance of occupying the online market emerged. In addition, due to the influence of COVID-19, the need for non-face-to-face channels further increased, and as a result, « Korea’s 1st Socially Responsible Digital CPI Platform w/ Digital Loan Aggregators Providers » projects were carried out by preparing platforms, products and digital partners.

In particular, through partnership with loan aggregator, it attempts to secure excellent sales by making more natural contact on the customer journey with CPI, which is highly related to loans.

Through partnership with Korea’s best loan aggregator ‘FINDA’, we provide an environment where customers can approach CPI anytime, anywhere and increase their involvement in CPI.

Reducing the burden of repaying loans in unexpected situations

Through CPI, customers can reduce the burden of repaying loans due to sudden death and illness, and create a healthier financial environment by preventing the increase in bad loans caused by increased household debt across the country.

Identify opportunities for digital-based B2B2C business expansion

Through this project, we secured new business expansion possibilities by securing experience values for business in new environments such as digital and recognizing factors necessary for online product development and preparations for securing performance.

What did you find most striking/surprising during this project?

We experienced how useful the B2B2C business model is in promoting unfamiliar products to customers. In Korea, BNP Paribas Cardif Insurance and CPI are unfamiliar brands. Hundreds of millions of won in budget investment is needed to promote and secure enough performances in this field.

However, through a partnership with loan aggregator fin-tech company, the two actors were naturally recognized by the customers involved in loans, and the performance through our platform (homepage, app, etc.) is also on the rise as the customer’s awareness spreads.

In order to spread these positive factors, infrastructure for product development and platform advancement suitable for online customers is seeded. Users prefer easy-to-understand information, and in particular, the Korean online market has a strong need for automation and fast speed based on excellent IT infrastructure, so developing and providing corresponding platforms and products will be an important factor in the project expansion.

What advice would you give to employees who also want to innovate?

There has been a lot of effort to achieve the present results in this project. Customer journeys based on the initial business model were subject to regulation under the Korean financial policy. So, BNP Paribas Cardif Korea and partners had to respond agilely for more than half a year, such as modifying business models and improving customer journeys. As a result, we were able to develop our business without any problems, and in addition, gradually increase performance by optimizing contact points, communication messages, and platforms based on customer behavioral data.

In the end, what is important in innovation is patience and perseverance. If your organization is heavily regulated or has limited investment, it is important to carry out the project with long-term will and consistency. If you continue to try and improve even if you fail, it will accumulate as powerful experiences to later solve problems and eventually inspire innovation.