[Practical Finance] "Conquering Jeju Island's Best Restaurants, Curing iPad Syndrome"... Playful Savings Gain Popularity

At the beginning of the year, ‘playful savings (fun saving)’ financial products in the financial sector are gaining attention. This trend is driven by the MZ generation, who have emerged as key customers in the financial industry, favoring easy and simple saving methods. From the consumer’s perspective, these products offer a fun way to save money when there are no suitable investment options or when money needs to be accumulated in a short period. For financial companies, these products help secure 2030 customers who prefer small and short-term savings, leading to a continuous release of related products.

According to the financial industry on the 19th, KakaoBank recently launched the ‘26-Week Savings with KakaoPage.’ The 26-week savings is KakaoBank’s representative rotating savings product. When a desired subscription amount is set, the amount increases weekly by that set amount. It has been steadily popular since its launch as it allows users to accumulate a lump sum in a short period with a small amount. Users can select Kakao Friends or Ninies characters and check their savings status.

KakaoBank added an element of fun by incorporating webtoons. When subscribing to the 26-week savings, users receive KakaoPage cash coupons worth up to 17,000 KRW. Characters in the KakaoPage version, such as ‘Martial Arts Chunsiki’ or ‘Elf Chunsiki,’ have been created, and events are held where users can participate in opening savings accounts and at maturity.

The interest rate for the 26-week savings is a base rate of 1.70% per annum (for 6 months) plus a preferential rate of 0.50% awarded upon successful challenge, totaling 2.2%. The number of subscribers has increased by about 3 million accounts annually, surpassing 10 million accounts last November. By age group, those in their 20s and 30s account for 70.7% of the total.

The MZ generation (Millennials + Generation Z), born from the early 1980s to the early 2000s, is generally regarded as seeking unique and enjoyable experiences. This is distinctly different from previous generations who joined long-term savings plans based solely on interest rates or limits. As a result, last year, during management strategy meetings of major financial groups, there were remarks such as “Let’s listen to the voices of the MZ generation and provide enjoyment.”

Receive gifts, save money, set goals, and earn preferential rates

KB Kookmin Bank’s representative playful savings product is the ‘Smart★Phone Savings.’ It features ‘icon saving,’ where users can save by tapping icons on mobile, and a screen where account status can be checked in the form of ‘farm cultivation.’ The maximum interest rate for a 36-month maturity is 2.55% per annum, and subscriptions can be made up to 1 million KRW. Preferential interest rates are also provided when recommending the product to others and having them subscribe.

Shinhan Bank’s ‘Sol Easy Gift Savings’ is a product that requires receiving an account gift from an acquaintance to subscribe. It offers an interest rate of 2.90% per annum with a 6-month maturity. To request an account gift, only the recipient’s name and contact information are needed. The sender designates the gift amount from their own account and sends a generated link via messenger apps or text messages.

K Bank launched last month the ‘Challenge Box,’ an automatic lump-sum saving service designed for those who typically give up on savings. Users set their desired goal, amount, and period, such as starting a European trip, gifting a luxury wallet, or purchasing electronic devices, and the weekly saving amount is automatically calculated. The target amount is a small sum within 5 million KRW, and the target period is short, between 30 and 200 days. The maximum interest rate is 2.0%, including a preferential rate of 0.50% points awarded upon achieving the goal.

Regional banks are also increasing playful savings products that combine fun. DGB Daegu Bank operates financial products linked to representative tourist attractions in the Daegu and Gyeongbuk regions. After visiting the tourist sites, users verify their visit through GPS certification via a mobile app. The preferential interest rate increases by 0.15% points per visit, with a maximum of 0.75% points each for Daegu and Gyeongbuk, totaling up to 1.50% points in preferential rates.

A startup aiming to provide fun saving services has also emerged. ‘Buen Camino,’ which is set to launch its savings platform this month, succeeded in attracting investment at the ‘Korea Fintech Week 2021’ held last year. The savings platform is expected to apply various fun saving methods, including savings goals, amounts, rules, and customization.

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