Shinhan Bank said Sunday said it would collaborate with Microsoft Korea in building and operating its new research and development platform.

On Friday, the two companies signed a strategic partnership for Shinhan’s Expace -- a combination of “experience” and “space” -- which will allow the bank’s digital team to work with fintech companies, startups and other innovative firms to develop and test cutting-edge financial services and technology.

Expace’s head office is planned to be launched in Myeongdong, central Seoul, by the end of this year, a Shinhan official told The Korea Herald. It was initially set to be launched by the end of November, but the prolonged coronavirus pandemic has delayed the initial plans.

“The offline venue will be a massive R&D platform, rather than just a co-working space,” the official added.

In September, Shinhan partnered with SK Telecom, the nation’s largest mobile carrier, to kick off R&D projects for integration of mobile edge computing technology and finance, which is forecast to accelerate the adoption of 5G mobile tech in the financial sector and to help nurture artificial intelligence-related fintech firms.

Parts of the Expace office will be designed to allow visitors to experience financial services with 5G mobile edge computing technology, the bank said.

“Through our new partnership with top global information and communication technology firm Microsoft, we are now able to design and develop Expace as an R&D platform for future finance services,” a Shinhan official said.

Expace is projected to serve as not only an R&D office but a digital headquarters for Shinhan in developing its pipeline of projects tied to the country’s 5-year 58.2 trillion won ($48.6 billion) Digital New Deal plan, announced earlier this year. The economic package focuses on digitalizing and updating its infrastructure, while increasing state investment in key cutting-edge technologies.

By Jung Min-kyung (mkjung@heraldcorp.com)