"No Fees for Cash Withdrawals and Various Services"... Convenience Stores Replacing Banks

'CU Machon Park Branch × Hana Bank'.

Contactless Transactions ↑ Banks Reduce 300 Branches and Over 1,700 ATMs Annually
Seven-Eleven ATM L.PAY Account Withdrawal Fee-Free Service Leads to 30-Fold Increase in Monthly Withdrawal Amount
CU-Hana Bank, GS25-Shinhan Bank Accelerate Development of Specialized Stores through Retail-Finance Collaboration

[Asia Economy Reporter Kim Yuri] As digital financial services and contactless transactions become more active, the pace of branch closures among major banks is accelerating, while convenience stores are emerging as offline service hubs for banks.

According to Lotte Members on the 13th, following the removal of withdrawal fees for L.PAY-registered accounts at over 8,000 ATMs nationwide installed in Lotte retail stores such as Seven-Eleven from the 1st of last month, the withdrawal amount via L.PAY increased more than 30 times compared to the previous month (as of the end of September). A Lotte Members official said, "Since all domestic bank accounts can be registered with L.PAY, withdrawal fees from virtually all bank accounts are free," adding, "Users seem to have increased because they can withdraw cash without fees at nearby Seven-Eleven stores."

Earlier on the 12th, BGF Retail, which operates the convenience store CU, opened a financial specialized store 'CU Macheon Park Branch × Hana Bank' in collaboration with Hana Bank. This store is equipped with one Smart Teller Machine (STM) and one Cash Dispenser (CD), allowing customers to perform 50 types of banking services including account deposits and withdrawals, passbook updates, account openings, passbook reissuance, and issuance of check cards and security cards (OTP). BGF Retail plans to open additional offline partner stores through further collaboration with Hana Bank.

GS Retail also announced on the 24th of last month that it signed a business agreement with Shinhan Bank and plans to build future-oriented innovative stores where financial services can be handled at GS25 convenience stores nationwide. GS25’s future-oriented innovative stores will be prioritized for installation in underserved areas such as remote and island regions lacking financial services.

According to the Financial Supervisory Service, 304 bank branches and 1,769 ATMs nationwide disappeared last year. In the first half of this year, 79 bank branches were closed, and major banks have announced plans to consolidate over 100 branches in the second half.

Kim Myungsoo, Head of Fintech Business Team at Lotte Members, said, "Since the COVID-19 pandemic, the importance of convenience stores as offline customer contact points and lifestyle-oriented platforms has increased," adding, "As the role of convenience stores is expected to expand further, we will actively develop joint services and promotions."

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