Savings banks will also release “meeting bank accounts” that are popular in commercial banks and Internet banks. A meeting bankbook is a product that allows several people to manage accounts together, and it is a product that financial companies have recently focused on because it can raise funds at a low cost. Savings banks plan to offer higher interest rates than commercial banks.
According to the financial sector on the 5th, the Korea Federation of Savings Banks is establishing a meeting account system with the aim of launching the service in the second half of this year. This month, it plans to conduct a survey on the demand for meeting bank accounts for savings banks.
Except for large savings banks such as SBI and OK, which use their own applications, other savings banks are using ‘SB TalkTalk Plus’, a banking app that uses the computer network of the Korea Federation of Savings Banks. Consumers are expected to be able to access the financial product mall of this banking app and subscribe to the meeting account service.
The Korea Federation of Savings Banks is also preparing to launch a debit card linked to the meeting bankbook. Customers can open a meeting account and make and use a linked debit card. It plans to release two types: “citation” for clubs or friend meetings and “family use” for families and couples.
Currently, Shinhan Bank’s “Sol Meeting Bank Account” and Kakao Bank’s “Meeting Bank Account,” which are representative meeting bank accounts, have a basic interest rate of only 0.1% per year. Savings banks are going to give higher interest rates.
The meeting bankbook is a product used by several people, so it is very helpful in attracting new customers for savings banks that are having difficulty raising funds. In the aftermath of the real estate project financing (PF), savings banks were directly hit by loan operations, and many customers left as interest rates on deposits and installments were also lowered to reduce costs.
According to the Bank of Korea’s economic statistics system, the total receivable balance of savings banks has steadily decreased to 100.5769 trillion won as of February, putting 100 trillion won on the verge of collapse. It fell 15.4% from 118.9529 trillion won two years ago, down more than 18 trillion won.
For savings banks, it is important to attract low-cost deposits and attract customers even if they pay slightly higher interest than commercial banks. Once introduced, it can also attract people to various special sale products of savings banks.
An official from the savings banking industry said, “Deposits are decreasing as loans are being reduced due to deteriorating asset soundness,” adding, “We are looking forward to a meeting account that will be released soon.”
[Reporter Han Sangheon]
Read More: Savings banks will also release “meeting bank accounts” that are popular in
