[1mm Financial Talk] Banks Unable to Remove Outdated Banking Apps

Elderly and Other Customer Groups Remain "Natural Movement Should Be Encouraged"

[Asia Economy Reporter Yu Je-hoon] Ms. A, a woman in her 60s living in the Seoul metropolitan area, recently felt confused while setting up a new smartphone for banking transactions. This happened when her son installed the latest app instead of the ‘mini’ version she had previously used from her main bank. Ms. A said, "I am now familiar with the new app, but at first, it felt complicated," adding, "Isn't it more comfortable to use something familiar?"

In response to the aggressive moves by big tech and fintech companies, the banking sector is pursuing a ‘one app’ strategy for service innovation. Initially, banks created separate apps for each function, but to reduce confusion, they are now consolidating functions into a single app and actively promoting it. Some banks are even trying to integrate apps from other affiliates such as securities and card companies. However, the ‘one app’ strategy is not smooth due to customers still using older apps. The industry expects that, in the mid to long term, as the number of users decreases, these older apps will naturally disappear, but that is not the case at the moment.

As of the 8th, a search on Google Play, the electronic software distribution (ESD) platform for Google Android, revealed that the four major commercial banks distribute about 60 apps. Most of these are the banks’ main banking apps, corporate and overseas customer-specific apps, but older banking apps such as ‘KB Star Banking Mini’ and ‘Shinhan S Bank mini’ are still noticeable.

The reason these older apps are still distributed is simple: there are still customers using them for various reasons. A banking industry official said, "Unlike younger customers who are familiar with new apps and mobile environments, some middle-aged and elderly customers often prefer older apps simply because they are familiar," adding, "There are quite a few customers who complain when familiar apps disappear."

However, banks are cautiously promoting the integration of older apps while monitoring the decline in users. Recently, Kookmin Bank decided to terminate the service of its simple banking app Liiv in the first half of this year and integrate its main functions into the fully revamped ‘KB Star Banking’ app from last year. This move is due to the gradual decrease in users. It is a step further toward app integration.

A commercial bank official said, "Even if an app is old, it is not easy to remove it recklessly as there are still customers using it," adding, "It seems inevitable to naturally induce a decrease in users and move toward integrating banking apps in the mid to long term."

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