"No Need to Visit Banks"...Non-Face-to-Face Transactions Near 80% Share

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] The proportion of loans, savings/deposits, and fund product subscriptions conducted non-face-to-face at banks is rapidly increasing. In some banks, the non-face-to-face transaction ratio for credit loans and installment savings products reached 70-80% as of the first half of this year.

According to Woori Financial Group's first half performance report on the 25th, non-face-to-face credit loans at Woori Bank accounted for 67.3% of the number of cases (new contracts) in the first half of this year. The proportion of non-face-to-face credit loans, which was 28.8% in 2019 and 55.9% in 2020, continued to increase rapidly in the first half of this year.

Among installment savings, the non-face-to-face ratio recorded 80.7% in 2019, 84.7% in 2020, and 89.2% in the first half of this year. Nine out of ten newly opened installment savings accounts were subscribed non-face-to-face. The non-face-to-face subscription ratio for fund products also increased from 61.6% in 2019 and 78.5% in 2020 to 83.8% in the first half of this year.

Hana Bank is also seeing a rapid increase in customers subscribing to non-face-to-face products. The non-face-to-face ratio for credit loans at Hana Bank steadily increased from 82% in 2019 to 86% in 2020, 87% in Q1, and 88% in Q2 of this year based on the number of cases.

The non-face-to-face ratio among installment savings rose significantly from 59% in 2019 to 72% in 2020, recording 75% in Q1 and 74% in Q2 this year. The non-face-to-face subscription ratio for funds was only 37% in 2019 but surged to 68% in 2020 and 93% in both Q1 and Q2 this year.

KB Kookmin Bank's non-face-to-face sales ratio for installment savings increased from 40.3% in 2019 to 46.5% in 2020 and 54.0% in the first half of this year. The non-face-to-face sales ratio for funds also jumped from 48.3% in 2019 and 50.0% in 2020 to 66.3% in the first half of this year.

However, the proportion of non-face-to-face credit loans was 21.4% in the first half of this year, similar to 21.9% in 2019 and 19.8% in 2020.

Shinhan Bank's non-face-to-face ratio for loan transactions steadily increased from 46.7% in 2019 to 55.5% in 2020 and 61.0% in the first half of this year. The non-face-to-face ratio for deposit products such as savings and deposits remained around 70%, recording 68.7% in 2019, 72.6% in 2020, and 68.9% in the first half of this year.

NH Nonghyup Bank also shows a clear upward trend in the non-face-to-face ratio for credit loans and installment savings. The non-face-to-face ratio for credit loans at Nonghyup Bank increased from 11.5% in 2019 to 18.9% in 2020 and 20.4% in the first half of this year, while the non-face-to-face ratio for installment savings surged from 19.3% in 2019 to 20.7% in 2020 and 42.4% in the first half of this year.

The number of customers who subscribed to loans, deposits, funds, bancassurance, and other products non-face-to-face reached 800,000 in the first half of this year alone, already surpassing the annual figures of 582,000 in 2019 and 761,000 in 2020.

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