Shinhan Financial Group announced Tuesday that it will invest 6.5 billion won ($4.82 million) into Habit Factory, an advanced data analysis insurance technology start-up, through the group’s strategic investment fund.

According to the financial institution, Habit Factory is a Seoul-based "insurtech" company -- a portmanteau of “insurance” and “technology” that aims to innovate the traditional insurance industry through the use of information technologies including data analysis and artificial intelligence.

In particular, Habit Factory operates its flagship insurance application called Signal Planner. Using AI technology, the app compares and recommends various customized products for users based on large database analysis, and through the results, its insurance agents provide tailored consultant services.

Through this investment, Shinhan not only plans to forge strategic partnerships with the insurance agency but also aims to collaborate across various fields such as developing customized financial products, through the sharing of expertise, and core competencies between the two parties.

“We are delighted to form a partnership with a promising startup that is leading new trends in the insurance industry,” said an official from Shinhan Financial Group. “Going forward, we plan to actively expand our footprint in the digital ecosystem by continuously collaborating with rising startups through our strategic venture capital investment.”

Earlier in June, under its affiliate Shinhan Venture Investment, the financial group debuted its megafund for digital strategic investment called “Shinhan Hyper Connect Investment Association” worth 270 billion won, with the aim of enhancing the group’s capacity in venture capital investments.