Shinhan Bank secures University of Seoul treasury after retaining city government account

Shinhan Bank is tightening its grip on the public treasury market after retaining the Seoul Metropolitan Government account and winning the treasury contract for the University of Seoul.

In May, Shinhan Bank topped the scoring in both the primary and secondary treasury designations in Seoul's selection process for its next city treasury operator, securing the right to manage the account from 2027 through 2030.

Seoul accepted proposals from May 4 through May 6 before convening its treasury designation review committee on May 12 to conduct evaluations.

In the primary treasury competition, Shinhan Bank edged out Woori Bank with a total score of 973.904 points to claim the top spot. In the secondary treasury contest — which drew four competitors including KB Kookmin Bank, Shinhan Bank, Woori Bank and Hana Bank — Shinhan Bank again led the field with 925.760 points.

The results extend Shinhan Bank's management of the Seoul city treasury, a role it has held since 2019. With Seoul's annual budget running at roughly 50 trillion won (about $32.7 billion), the city treasury is considered one of the most coveted public accounts in the domestic banking industry.

The win carries particular weight because Shinhan Bank first wrested the account from Woori Bank in 2019 — ending nearly a century of unbroken stewardship that Woori and its commercial-banking predecessor had maintained — and has now successfully defended it.

Shinhan Bank's push into the public treasury market did not stop there.

The bank also won the treasury designation bid for the University of Seoul, further expanding its foothold in the financial management of major institutions under the Seoul Metropolitan Government.

The University of Seoul treasury had long been operated by Woori Bank, the successor to the merged Commercial Bank of Korea and Hanil Bank. Shinhan Bank secured the contract after receiving high marks in the latest bidding process, according to industry sources.

Banking industry observers say Shinhan Bank's public-sector financial expertise, built up through years of managing the Seoul city treasury, and its competitive digital banking services were key factors behind the strong evaluations.

"Winning both the Seoul city treasury and the University of Seoul treasury shows that Shinhan Bank's capabilities in public finance have reached a considerable level," an official at a commercial bank said. "The bank looks set to hold an advantageous position in future competitions for local government and public institution treasury contracts."

With both the Seoul city treasury and the University of Seoul treasury now in hand, attention is turning to how far Shinhan Bank will extend its influence across Seoul's public-sector financial market.