Kakao Bank, Stand Back... Flood of Services Targeting Top 10 Commercial Banks

[Asia Economy Reporter Bu Aeri] Commercial banks are recently intensifying their efforts to target teenage customers. Since the popularization of smartphones, various strategies such as applying characters and launching artificial intelligence (AI) features have been implemented to attract the Alpha generation (born after 2010).

According to the financial sector on the 4th, Shinhan Bank launched 'Little Shinhan' last month. Little Shinhan is a service designed to enhance the convenience of financial transactions for minor customers. It is available on Shinhan Bank's application (app), Shinhan SOL, where users can receive guidance on financial transactions for minors, such as the Youth Happiness Voucher and Meme Card issuance. Additionally, the Little Shinhan service significantly reduces the time required for document preparation when opening new accounts for minors. A Shinhan Bank official stated, "We plan to continuously provide fun and beneficial content so that minor customers, who are the future leaders, can develop healthy saving habits."

KB Kookmin Bank also launched the 'Liiv Next' app targeting teenage customers in November last year. 'Liiv Pocket,' which can be opened by customers without an ID, allows teenage customers to open accounts directly through mobile phone verification, and a dedicated number in the form of an account number is assigned for financial transactions. Through Liiv Pocket, users can transfer money without fees and recharge at CU convenience stores and pay via barcode. Payments at online and offline affiliated stores are also possible through KB Pay. In particular, Kookmin Bank is focusing on targeting the Alpha generation by introducing AI banking service 'Conversation with Collie,' where users can interact with 'Collie,' a character modeled after broccoli.

Hana Bank also introduced an experiential financial app targeting the Alpha generation in June last year. Parent and child members each install the app on their smartphones and can send and receive allowances via mobile. Allowance usage is possible through a prepaid electronic payment method that does not require a Hana Bank account, and child members receive and manage allowances from parent members. In fact, the number of users of Kookmin Bank and Hana Bank apps has grown since their initial launch. According to Mobile Index, Liiv Next had 23,677 monthly active users (MAU) in November last year, which increased nearly fivefold to 101,348 in March. Similarly, the number of users of Aibuja grew from about 80,000 to 108,189 during the same period.

Kakao Bank's 'Mini,' which entered this market a step ahead of commercial banks, has established itself with unique services. Half of the population aged 14 to 18, the target users, use it. As of the end of May, Kakao Bank Mini had over 1.35 million subscribers. Kakao Bank Mini is a service that helps teenagers, who are starting their first real financial transactions, develop economic sensibility. Even without a bank account, users can store and transfer money, and it also offers transportation card functions and online/offline payment capabilities. A banking industry official said, "Once customers start using a bank, they tend to stay loyal, so teenage users are important for banks in terms of securing future customers."

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