Commercial banks are expanding partnerships with big tech and retail sectors while seeking new avenues. As the boundaries of finance gradually diminish, they are focusing on 'embedded finance' to integrate their financial services with non-financial platforms. For commercial banks, whose main customer base is in their 40s to 60s, the ability to secure young new customers through partnerships is a significant advantage. Furthermore, they can quickly grasp financial demands in everyday life and provide diverse services, enabling them to anticipate additional revenue, so this trend of alliances is expected to continue for the time being.
According to the financial sector on the 12th, NH NongHyup Bank has signed a business agreement with Naver Pay this month to establish a system that allows for the conversion and use of NH Members points and Naver Pay points. The goal is to attract 34 million customers using Naver Pay to NongHyup Bank while also expanding financial service partnerships in the future. After signing a business agreement with Naver Pay in February to expand the digital financial ecosystem, NongHyup Bank is discussing specific cooperation plans.
KB Kookmin Bank is strengthening its partnership with Shinsegae Group. In April, the bank launched the 'KB Star Account' in collaboration with the food and beverage company Starbucks and began offering easy payment services within the Starbucks application for Kookmin Bank accounts. It also plans to launch 'Ssg KB Bank' within the e-commerce platform SSG.com this year, allowing customers to subscribe to Kookmin Bank’s financial products and utilize banking services. They are preparing to release parking accounts and shopping-themed savings products targeted at SSG.com customers, where customers can store SSG money (prepaid funds) in these accounts to use at any time, and also earn interest revenue on the deposits.
Kookmin Bank launched the 'Monimo KB Daily Interest Account,' which can only be opened through the Monimo app, an integrated financial platform of Samsung Financial Networks, including Samsung Life Insurance, Fire and Casualty, Card, and Securities, in April. This account has become very popular, selling out 200,000 accounts within 40 days of its release. The two companies are reportedly discussing ways to launch savings accounts, foreign exchange financial products, and expand their partnership.
Hana Bank launched the 'Carrot Money Hana Account Service' in March in collaboration with the online second-hand trading platform Carrot Market. This account safely stores Carrot Market's prepaid fund, 'Carrot Money,' in accordance with the Depositor Protection Act and offers preferential interest rate benefits as a deposit account. Woori Bank is preparing 'CJ Pay Woori Account Service' in collaboration with CJ and 'Naver Pay Money Account Service' with Naver, respectively. Shinhan Bank is also preparing products for individual business owners utilizing Naver Pay.
For commercial banks, which are finding it increasingly difficult to secure new customers, partnerships with non-financial sectors are a new breakthrough. It is attractive in that it can draw loyal customers from transaction partners. A bank official noted, "While they have previously seen big tech and platform companies as competitors, they are now viewing them as partners and are putting effort into collaboration and attracting them," and added, "The embedded finance business is expected to continue to expand due to its effectiveness in acquiring new customers."
It is also favorable in terms of securing low-cost deposits. Collaboration accounts fall under low-cost deposits, allowing banks to fund themselves at a lower cost than issuing bank bonds or creating high-interest special savings accounts.