As regulations on network separation in the financial sector are gradually relaxed, financial companies are accelerating the introduction of cloud-based SaaS (Software-as-a-Service) and generative AI.

According to the Financial Services Commission, 187 applications for innovative financial services were received during the third quarter of this year, of which 70.6% (132 cases) were focused on the ‘electronic finance and security’ sector.

This shows that financial institutions are actively promoting the introduction of cloud and SaaS in line with the relaxation of network separation regulations.

In addition, it is expected that more diverse SaaS solutions will be applied to financial institutions in accordance with the 'Financial Sector Network Separation Improvement Roadmap' announced last August, and IT companies including SAP Korea are moving quickly to secure financial institution customers.

Currently, financial companies' SaaS adoption is centered on collaboration tools, and in the human resources management field, the use of SAP SuccessFactors is prominent.

SC First Bank, which is actively utilizing SaaS for service innovation, introduced SAP SuccessFactors for human resource management innovation.

SAP SuccessFactors is SAP's HR solution that provides comprehensive HR management functions, including HR information management, organization and workforce analysis. This enables HR managers to respond quickly and accurately to key tasks linked to business decisions.

By introducing the solution, SC First Bank plans to enhance efficiency in the human resources and performance management sectors and realize strategic talent management. In addition, as the collaborative environment improves, communication costs are expected to be reduced and work efficiency is expected to increase.

KB Kookmin Bank also introduced SAP SuccessFactors with this goal in mind.

IT companies must evaluate the security of cloud service providers (CSPs) in order to enter the financial market. Since financial companies must meet various regulations, including electronic financial supervision regulations, CSP security evaluation is becoming an essential gateway to conquering the financial SaaS market.

Accordingly, SAP Korea has recently completed the Financial Security Institute's representative evaluation of SAP S/4HANA Cloud Private Edition and is accelerating preparations to conquer the financial sector.

Currently, SAP Korea is undergoing the final verification evaluation by the Financial Security Institute and plans to complete all procedures by November. Through this, financial institutions are expected to secure security reliability when introducing SAP solutions and proceed with cloud transition more quickly.

Meanwhile, as regulations are relaxed to allow financial institutions to utilize generative AI, solutions with differentiated AI functions are expected to attract the attention of financial institutions.

SAP is embracing business AI across its portfolio, making it easier for enterprise customers to leverage generative AI.

In particular, the SAP Foundation Model learns data with the consent of over 20,000 customers and provides insights optimized for the corporate environment.

Additionally, SAP's generative AI hub has 25 built-in giant language models (LLMs), which can be commercialized according to customer characteristics.

In addition, it has the advantage of data privacy as the data remains only with the client and is not sent to a public language model, and data security is further strengthened by restricting access to sensitive data through job-based authorization and authentication mechanisms.