'You Have to Stand Out to Sell'... Bank Special Offers Also Targeting the 'MZ Generation'

Deposit Banks' Fixed Savings at Lowest Level in 2 Years
Significant Increase in Customers Turning to Stocks and Cryptocurrency
Banking Sector Attracts Customers with Themed Special Offers Featuring 'Stories'

(Photo by LCK Weekly Speed YouTube video)

[Asia Economy Reporter Jin-ho Kim] Recently, a spectator’s cheer sign phrase at the professional league of the online game ‘League of Legends (LoL)’ became a hot topic. The cheer sign read, “Fighting GEN.G, take responsibility for my LCK (LoL Champions Korea) savings interest rate.” It drew laughter from many as it humorously pressured the team to win, implying that the better the team’s performance, the better the interest earned on the bank savings product.

It has become an era where even special bank products must ‘stand out to sell.’ Major commercial banks are partnering with online games, professional baseball, and other sectors to continuously launch various creative products. This is interpreted as a strategy to capture the attention of the 2030 MZ generation (Millennials + Generation Z), who have shifted their focus from stable savings to stock and cryptocurrency investments.

According to the Bank of Korea and financial authorities on the 18th, amid the prolonged low-interest-rate environment over the past two to three years, the trend of withdrawing deposits and savings to move money into stocks or cryptocurrencies is accelerating. As of April, the balance of regular savings deposits at deposit banks stood at 33.265 trillion won, the lowest level in two years. Compared to the end of last year (39.263 trillion won), when the cryptocurrency boom began, nearly 6 trillion won has been withdrawn.

Consumer interest in special bank products, which had been popular due to their interest rate advantages, has also significantly declined. A bank official said, "As money rapidly flows into investment markets like cryptocurrencies and stocks, sales of special bank products are not what they used to be," adding, "Especially, the influx of young customers has decreased significantly compared to before."

Banks Incorporate ‘Stories’ into Special Products

To attract future customers from the MZ generation, banks have adopted differentiated strategies. A representative example is special bank products. Instead of simply targeting university students and young professionals, these products are designed around specific themes such as professional baseball or popular online games. This approach adds a ‘story’ to the products to appeal to the strong individuality of the MZ generation.

Woori Bank’s ‘Woori LCK Savings,’ launched on the 9th, is a prime example. Among the 10 LCK teams that are overwhelmingly popular among young people, customers can directly choose the team they support when subscribing. Depending on the performance of the chosen team, customers can receive a preferential interest rate of up to 0.7 percentage points, and up to 0.3 percentage points based on the number of subscribers. The maximum interest rate is 2.0% per annum.

As of the 16th, just one week after its launch, 3,300 accounts (2 billion won) had been sold. A Woori Bank official said, "Interest is high because the interest rate varies depending on the team supported," and added, "More than 80% of subscribers are from the MZ generation, and the product is highly regarded within the bank."

Shinhan Bank has teamed up with professional baseball to target the MZ generation. Shinhan Bank’s ‘2021 Shinhan Professional Baseball Savings,’ launched at the end of March, offers a maximum annual interest rate of 2.4%, including a preferential rate of 1.4%. Similarly, the preferential interest rate is determined by the performance of the team chosen by the customer. As of the 15th, a total of 67,260 accounts had been sold.

Another bank official said, "Special products targeting the MZ generation are part of a long-term strategy to secure future customers," and added, "We expect differentiated special products that provide fun and convenience to meet their needs will continue to dominate the market."

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