Strategic innovation in retail finance: the growth and challenges of Hana Bank’s ETF-specified money trust (SMT)

Learning outcomes This case enables students to understand ETF evolution and the role of ETF-specified money trust (SMTs) in Korean banking, apply Hana Bank’s Fractional Buyout Type (FBT) mechanism in practice and analyze strategic changes driving its market leadership. Students will evaluate theoretical frameworks such as Disruptive Innovation, Blue Ocean Strategy and RBV and, finally, synthesize insights by designing a strategic roadmap for Hana Bank’s next move in 2025. Case overview/synopsis Hana Bank transformed its trust division by launching the FBT and diversifying into bond-type and US-listed ETFs, achieving market leadership in ETF-SMTs between 2021 and 2024. The client-centered FBT model enhanced investor trust by mitigating market timing risks, whereas organizational investments in training and digital infrastructure redefined bankers as advisors rather than mere product sellers. This strategic innovation turned ETF-SMTs from niche products into a core wealth management platform. By mid-2025, however, competitors had begun to imitate Hana’s model, financial volatility was intensifying and AI-driven fintech platforms were reshaping the industry landscape. The case presents the central dilemma: Should Hana reinforce FBT, expand more aggressively into global ETFs or leap into AI-driven portfolio trusts to achieve its next stage of growth? Students are invited to analyze the bank’s transformation and propose forward-looking strategies. Complexity academic level This case study can be used for MBA-level programs. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.