Commercial Banks' Mobile Territory War: "Defend the App"

KB Kookmin Bank Leads Amid Intensifying Competition
KakaoBank Ranks First Among All Banks
"High Intuitiveness and Rich Experience Are Key"

[Asia Economy Reporter Kim Hyo-jin] Major commercial banks are fervently expanding their 'mobile territory.' In particular, mobile banking applications (apps) serve as gateways to digital banking from the consumer's perspective, leading to fierce competition among banks to increase usage. KB Kookmin Bank is leading the market, with Shinhan Bank and NH Nonghyup Bank closely following.

According to market research firm Nielsen Korean Click on the 22nd, KB Kookmin Bank's mobile banking app 'KB Star Banking' recorded about 10.57 million monthly active users (MAU / combined Android and iOS) in May, making it the only commercial bank to surpass 10 million users and rank first. Based on this survey, May was the first time this year that KB Star Banking's MAU exceeded 10 million.

Shinhan Bank's 'Shinhan SOL' and NH Nonghyup Bank's 'NH Smart Banking' followed with 8.27 million and 7.56 million users, respectively. Woori Bank's 'Woori WON Banking' recorded 5.8 million users, and Hana Bank's 'Hana One Q' had 5.11 million users.

The trend of KB Kookmin Bank leading, with Shinhan Bank and NH Nonghyup Bank relatively close behind, and Woori Bank and Hana Bank forming the 4th and 5th positions has continued for a year since May last year. Expanding to all banks, Kakao Bank, where all transactions are conducted via mobile, has the highest MAU at 11.54 million (as of May).

An official from a bank said, "App usage reflects intimate patterns such as users' habits and daily routines, so attracting new customers is difficult," but added, "Many banks are restructuring their business environment around digital, so there is ample possibility for disruption in the future."

"Capture 'App Heart' with Simplified Procedures and Diversified Marketing"…Banks Are Going All Out

Banks are appealing to consumers through various marketing strategies and system reforms. NH Nonghyup Bank is recently promoting simplification of app authentication procedures through agreements with authentication company PASS. This aims to increase initial customer inflow by enhancing convenience.

Additionally, they are striving to broaden consumer touchpoints through partnership events with local governments and telecommunications companies, as well as 'personalized' marketing via individual banner construction.

Woori Bank is focusing on providing user-customized services through 'precise personalization' features such as dual main screens, financial transaction notices, and product recommendations. Woori Bank reduced the product subscription process within the app from 11 steps to 5 and enabled the use of Woori WON Banking as an integrated mobile channel for the group by providing Woori Card inquiry services.

Shinhan Bank is strengthening its app into a 'life platform' that offers functions including asset management and retirement management, aiming to provide innovation across the entire financial life beyond traditional banking.

KB Kookmin Bank is focusing on making its app more three-dimensional and diversified by enabling analysis and diagnosis of other bank accounts through the 'KB My Money' feature. Hana Bank is also expanding the scope of non-face-to-face usage through the app by strengthening non-face-to-face product lines such as mobile loans and 'Currency Exchange Wallet.'

A financial industry official pointed out, "Compared to programs from information and communication and tech companies, commercial banks' apps tend to lack intuitiveness and show a relatively strong tendency to display too many performances," adding, "It seems important to transform them into spaces that are simple to access yet rich in experiences."

This content was produced with the assistance of AI translation services.