The tradition of giving New Year cash gifts to parents has become old-fashioned. This is because more teenagers are putting New Year cash gifts or pocket money into 'my account.' Banks are working hard to increase their touchpoints with the 'Gen Z + Alpha' generation. The 'Gen Z + Alpha' generation, born between the mid-1990s and the early 2000s for Gen Z and after the early 2010s for Alpha, tends to be financially savvy from a young age, prompting banks to quickly move to make them loyal customers.
According to the financial sector on the 28th, Woori Bank launched a non-face-to-face 'child account opening and pocket money management service' on the 7th. This service can be used through the Toss application. Parents can create a Woori Bank account in their child's name and deposit pocket money into this account, which children can then utilize through the Toss app.
Woori Bank has a plan to attract both the parental customer base and increase teenage customer numbers through this service. Previously, to open an account in a minor's name, various documents, including a family relationship certificate, had to be submitted in person at the bank's branch. However, Woori Bank has launched this product to simplify this complex process for customers.
Additionally, KB Kookmin Bank launched 'KB Starlings,' a service for 14- to 18-year-olds, within the KB Star Banking app at the end of last year. Users can sign up using just mobile phone authentication without visiting a bank, and they can create a 'Pocket,' a prepaid wallet for teenagers. Teenage customers can transfer money or make deposits through their Pocket without fees. They can exchange money with friends or use it for purchases via bank transfers.
In particular, there is a Pocket-exclusive card that provides a 5% discount at convenience stores, Olive Young, and Daiso, which teenagers frequently use. Using the payment function of KB Starlings, users can make payments without possessing the physical Pocket-exclusive card. Kookmin Bank has included educational and lifestyle content, such as daily quizzes on Korean history and today's one-liner, within KB Starlings.
Hana Bank also offers the experience-based financial platform 'iBooja' app for the Alpha generation. This app allows parents and children to install the app on their respective phones and use it to send and receive pocket money. It also includes a feature that allows young customers to check their school meal menus and schedules within the app.
Shinhan Bank introduced the 'Shinhan Little Care' platform last year. It offers various services aimed at improving financial convenience for minor customers, such as ▲ prenatal registration service ▲ advance application service for minors ▲ viewing customized products for children ▲ child and youth happiness voucher ▲ services related to gifts ▲ issuance of Shinhan Meme cards. The goal is to provide financial transaction services for children from before birth through adolescence.
The reason banks are focusing on developing products for the 'Gen Z + Alpha' generation is that teenagers have emerged as proactive financial consumers. According to Woori Bank's report on the lifestyle of Korean teenagers, 'Teens Diary,' 91.4% of survey respondents received their pocket money in accounts or cards (prepaid cards) in their own names. Only 6.8% of teenagers received cash, and just 1.8% used parental money. Even during the 'pocket money peak' of the holidays, 81.8% manage it directly.
Nowadays, teenagers also prefer 'Dutch pay' where costs are shared individually. Among the respondents, 76.2% said they prefer Dutch pay regardless of the amount when settling the bill with friends. They also preferred to split costs 'equally' on dates with the opposite sex.
A source from a commercial bank noted, 'It is crucial for teenagers to experience the bank's financial services from a young age because they will eventually become future customers of financial institutions. If they have experiences using a bank's services from when they were young, they are more likely to become loyal customers that continue using those services.'