'What Is Choeae Jeokgeum?'... 400,000 People Flocked to Kakao Bank Pre-Registration
Published 18 Apr.2023 10:30(KST)
Updated 18 Apr.2023 13:45(KST)
KakaoBank Includes Multi-Unit and Row Houses in Mortgage Loans
Star Encourages Savings of a Fixed Amount Each Time They Perform a Specific Action
Kakao Bank has expanded its scope by launching a favorite savings account targeting fandoms and extending the eligibility for mortgage loans to include multi-family and row houses.
On the morning of the 18th, Yoon Ho-young, CEO of Kakao Bank, said at a press conference held at the Fairmont Ambassador Hotel in Yeouido, Seoul, "We will continue our efforts for inclusion and innovation this year and become the number one financial and essential lifestyle app." Kakao Bank's strategy is to reinvent itself as a platform that connects finance and daily life based on convenience and reinterpretation of financial products.
Saving at Meaningful Moments... Launch of 'Choeae Savings'
As part of this direction, Kakao Bank launched 'Choeae Savings,' a fandom-based service, on the same day. Choeae Savings is the first service of the new deposit product called the Record Account by Kakao Bank. According to Kakao Bank, 400,000 people signed up within just 10 days of pre-registration.
Choeae Savings is already a term commonly used among idol fans. It is a 'saving-type fan culture' where a certain amount is saved every time a favorite star performs a specific action. For example, if a favorite singer uploads a personal photo on social media (SNS), 1,000 KRW is saved; if they appear on a variety show, 10,000 KRW is saved, and so on, following a personal rule while keeping a record.
Kakao Bank’s Choeae Savings allows users to decorate their accounts with their favorite photos. It has enhanced image registration and editing features, which have been difficult to find in financial services until now. Users can also set their own saving rules and share them with others. The product offers an interest rate of 2.0% per annum and functions like a regular savings account with flexible deposits and withdrawals. Interest at 2.0% per annum applies even if the money is deposited for just one day.
The Record Account only allows deposits through saving rules linked to a connected Kakao Bank checking account, and withdrawals are only possible to the connected account. Each person can open one Record Account and create up to 10 Choeae Savings accounts. Kakao Bank plans to expand the Record Account service to suit various types of records customers want, such as baby savings, pet dog savings, exercise savings, and overtime savings.
Kim Young-rim, Service Owner (SO) of Kakao Bank’s Signature Camp, said, "Kakao Bank has been close to customers in various moments of their daily lives through unique products like group accounts, 26-week savings, and piggy banks, which digitally reinterpret existing financial products. This time, with Choeae Savings and the Record Account focusing on 'recording' and 'sharing,' we will once again provide customers with the fun and new experiences of finance."
Mortgage Loans Expanded to Multi-family and Row Houses
Kakao Bank announced that starting from the 20th, the scope of mortgage loans will be expanded from apartments to include multi-family and row houses.
Multi-family and row houses can also conveniently use 100% non-face-to-face services such as document submission, loan screening, and execution through chatbot functions, just like existing mortgage loans. Kakao Bank assesses the market price of multi-family and row houses through an Automated Valuation Model (AVM) system. By collaborating with providers of automated real estate price estimation, it evaluates the collateral value of multi-family and row houses similarly to apartments and allows users to check loan eligibility and interest rates.
The recently revised Banking Supervision Regulations allow banks to set their own evaluation criteria for apartments and villas with fewer than 50 households. The average time required to check loan limits and interest rates for multi-family and row houses is 3 minutes and 29 seconds. Additionally, collateral classification is automated, so customers can find their homes by simply entering the address without distinguishing whether the collateral is an apartment or a multi-family/row house.
The loan interest rate is a minimum of 3.53% per annum based on a mixed rate (as of the 17th), and prepayment penalties are fully waived. Loan terms can be selected from a minimum of 15 years up to 45 years (for youth), and the maximum loan amount is 1 billion KRW.
Previously, in February last year, Kakao Bank introduced a mortgage loan product that allows convenient 100% non-face-to-face use of document submission, loan screening, and execution through chatbot functions. The cumulative balance of mortgage loans exceeded 2 trillion KRW within just over a year since its launch.
Song Ho-geun, Service Owner (SO) of Kakao Bank’s Collateral Loan Camp, said, "Even for collateral that is difficult to value at banks, we have done our best to implement services so that customers can use them equally. We will continue to strive to expand the convenient mortgage loan experience to other coverages."
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