"After Work Bank Services OK"…Expansion of Branches with Flexible Operating Hours (Comprehensive)

Expansion of Flexible Operating Hours Amid Bank Branch Closures
Enhancing Customer Satisfaction and Strengthening Face-to-Face Channel Competitiveness Through Increased Customer Contact Points

[Asia Economy Reporter Park Sun-mi] Financial consumers will be able to conduct financial transactions in the evening at more bank branches next year. As the number of bank branches is rapidly decreasing, making it difficult for consumers to visit nearby branches, the expansion of branches with flexible operating hours is expected to help alleviate the inconvenience for consumers who are not accustomed to non-face-to-face services.

According to the banking sector on the 30th, KB Kookmin Bank plans to expand its branches with specialized operating hours next year. They are preparing to expand the operation of ‘9TO7 Bank,’ which extends operating hours by 3 hours compared to regular branches that open at 9 a.m. and close at 4 p.m., and ‘After Bank,’ which adjusts opening and closing times by 1 to 2 hours later. Currently, the selection of branches and staff for the expansion of branches with specialized operating hours is underway, and the number of additional branches to be expanded will be decided by mid-January next year.

Since introducing branches with specialized operating hours in December 2017 to accommodate office workers, dual-income couples, and business owners, KB Kookmin Bank currently operates 20 ‘9TO7 Bank’ branches and 23 ‘After Bank’ branches. These branches extend opening hours or operate flexibly to meet the diverse needs of customers in different regions, such as office workers who find it difficult to visit branches during regular banking hours or can only visit during lunch breaks.

The expansion of branches with specialized operating hours reflects the management philosophy of KB Financial Group Chairman Yoon Jong-kyu, who aims to provide financial services without inconvenience to even a single customer. It is also known that Lee Jae-geun, the next president of KB Kookmin Bank, is actively promoting the expansion of specialized branches next year. A KB Kookmin Bank official explained, "The expansion of branches with specialized operating hours next year is to enhance customer satisfaction through increased customer contact points and to strengthen the competitiveness of face-to-face channels."

Shinhan Bank, which recently faced difficulties over the closure of its Wolgye-dong branch, has also prepared a desperate measure to alleviate consumer inconvenience. They plan to expand the operation of digital desks within digital lounges (unmanned branches) where financial services can be provided via video connection with bank employees from 9 a.m. to 5 p.m. Currently, 29 digital desks are in operation. Shinhan Bank plans to install about 60 more by the end of the first quarter next year.

This means that even after branch operating hours end, consumers will be able to receive financial services through digital desks. Separately, they are also expanding video consultation services using convenience store branches. Video consultations for banking services in convenience stores are available from 9 a.m. to 8 p.m. on weekdays, which is 4 hours longer than regular branch operating hours. This is to support local residents who visit convenience stores after work to receive consultations at their convenience.

A Shinhan Bank official said, "We are not only increasing the number of digital desks but also considering flexible operation of digital desks for customers who want to conduct business early in the morning or late at night, staffed by employees who desire flexible working hours."

In the banking sector, with the reduction of branches due to digital transformation and the expansion of non-face-to-face services, there is no choice but to consider expanding branches with specialized operating hours to increase customer contact points. According to data submitted by the Financial Supervisory Service to the office of Assemblyman Bae Jin-kyo of the Justice Party, a member of the National Assembly’s Political Affairs Committee, 179 branches (including sub-branches) have been closed by the five major commercial banks?Shinhan, Kookmin, Woori, Hana, and NongHyup?by the end of October this year. Additionally, 72 branches are planned to be closed by the end of the year by these five banks.

However, the expansion of branches with specialized operating hours is also linked to flexible working hours for employees, so it requires consultation between bank management and labor unions, and efficient coordination between labor and management must be supported. A bank official explained, "Previously, commercial banks operated specialized branches limited to airports, courts, hospitals, and branches exclusively for foreigners. Since there is a need to expand customer contact points to survive competition with big tech companies, flexible operating hours are inevitable."

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