[Friday Story] Only One Complaint Despite Reduced Bank Hours... "Did They Actually Shorten Business Hours?"

Social Distancing Level 2.5
Financial Labor and Management Reduce Business Hours by 1 Hour

Banks Struggling with Complaints
Only 1 Complaint Regarding Business Hours

Customer Cooperation to Prevent COVID Spread
Digitalization Reduces Bank Visitors

[Asia Economy Reporter Kim Min-young] “Did the bank hours get shortened? I usually transact via mobile and rarely visit branches, so I didn’t know.” (Choi In-jeong, an office worker visiting Bank A in Jung-gu, Seoul)

“I knew that bank hours were shortened due to the novel coronavirus infection (COVID-19), but I didn’t feel much inconvenience. Except for using the ATM, I hardly use the branches.” (Jung Man-su, a customer of Bank B in Yeouido, Seoul)

Although banks started operating with reduced hours by one hour from the 1st due to the resurgence of COVID-19, it was found that only one complaint was received regarding inconvenience at major banks. Rather, many people were unaware that the operating hours had been shortened. This can be interpreted as meaning that consumers hardly feel inconvenienced even if bank hours are reduced. This coincides with criticism that the financial authorities’ recent directive to banks to refrain from closing branches to minimize consumer inconvenience runs counter to the trend.

To prevent the spread of the novel coronavirus infection, a notice informing about shortened business hours is posted at Shinhan Bank in Yeouido, Seoul, where the business hours of banks in the metropolitan area have been reduced. Accordingly, the business hours of banks located in the metropolitan area will be shortened by one hour from the usual 9:30 AM to 3:30 PM and are expected to be maintained until September 6. Photo by Kang Jin-hyung aymsdream@

According to the financial sector on the 11th, contrary to concerns that customer inconvenience would increase due to shortened hours, customers did not raise any complaints at all. From the 1st to the 9th, when the shortened hours were implemented, only one complaint related to shortened hours was received at the five major banks (Shinhan, KB Kookmin, Hana, Woori, NH Nonghyup). The only complaint at Bank A was a simple dissatisfaction asking “Why were the hours shortened?” No complaints were received at the other four banks either internally or through other institutions such as the Financial Supervisory Service.

Operating Hours Reduced by One Hour Through Financial Labor-Management Agreement

With the resurgence of COVID-19 and the implementation of social distancing level 2.5 in the metropolitan area, banks have shortened their operating hours by one hour from the 1st to the 13th based on an agreement between financial labor and management. The operating hours were adjusted from the previous 9:00 AM to 4:00 PM to 9:30 AM to 3:30 PM, shifting both the start and end times by 30 minutes.

As of the end of last month, the five major banks had 3,726 branches. Of these, 2,792 (74.9%) are concentrated in the metropolitan area. This means about 4 out of 5 branches are affected by the shortened hours. Expanding to all domestic banks, 3,609 branches are operating with reduced hours.

Typically, banks receive continuous complaints related to loans and deposits, interest issues, and unfriendliness of counter staff. The five major banks received 1,480 complaints in the first half of this year, averaging 8.13 complaints per day. However, the banking sector is somewhat surprised that there are almost no complaints regarding the shortened operating hours. It is analyzed that customers are cooperating well to prevent the spread of COVID-19. While the decrease in visitors due to COVID-19 is a factor, it is also interpreted as reflecting the current trend where digital finance such as mobile applications has become part of consumers’ daily lives, making visits to banks increasingly rare.

Pressure from Authorities to Close Branches ‘Ineffective’

Some point out that many middle-aged and older customers who mainly visit branches were unaware of the shortened hours. In particular, this consumer perception is criticized for undermining the financial authorities’ recent concerns about the rapid closure of branches. Earlier, the Financial Supervisory Service warned that 126 branches disappeared from the four major banks in the first half of this year alone and urged “to carefully consider branch closures.” Although the convenience of elderly customers was cited as the reason, the banking sector believes that underlying this is concern that branch closures could lead to workforce restructuring. A representative from a commercial bank said, “While financial authorities are trying to prevent branch closures, demands for branch consolidation are growing both inside and outside banks due to COVID-19.”

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