Internet-only banks, which have been dominating group savings accounts, are faced with challenges from commercial banks. Through group savings accounts, banks can not only increase customer loyalty but also secure a portion of the declining deposits. However, there are concerns that it will not be easy for commercial banks to surpass the community-based functionalities offered by internet banks in this area.
According to the financial sector on the 18th, Shinhan Bank launched the 'SOL group savings account service' on the 11th, featuring its new advertising model, actor Cha Eun-woo, in its first advertisement. While Shinhan Bank's group savings account service began in 2011, it was suspended in 2022 due to low usage rates, but it has resumed after three years. New features were added, such as allowing pooled funds to earn additional interest when deposited in a parking savings account when not in use.
In addition, Woori Bank, KB Kookmin Bank, Hana Bank, and NH Nonghyup Bank are already operating group savings account services. To promote the use of its group savings account, KB Kookmin Bank added a parking savings account function with an annual interest rate of around 2% in the second half of last year, and established new features that connect the group function to existing accounts. The Woori Bank group savings account allows modifications to the group leader while maintaining existing records and can issue multiple cards.
The group savings account services are becoming popular among those in their 20s and 30s. The popularity of the group savings account service introduced by KakaoBank in 2018 sparked interest, with KakaoBank's group savings account balances exceeding 8.4 trillion won as of the end of last year. The number of customers has reached 11.3 million. KakaoBank's group savings account stands out for its ease of joining and inviting through the KakaoTalk messenger and allows balance checks and transaction history checks without requiring an account, highlighting accessibility and convenience.
The money flowing in and out of group savings accounts is classified as low-cost deposits since there are no interest expenses incurred. Most are operated in the form of demand deposit accounts, with a basic interest rate of only about 0.1% per year. For banks, this serves as a means to secure deposits at lower rates than standard savings instruments. Additionally, it provides advantages such as attracting new customers and gaining loyal clients.
For these reasons, the three internet banks—KakaoBank, Toss Bank, and Kbank—have already introduced group savings account services. Recently, however, as the balances in banks' demand deposits have declined due to investments in U.S. stocks, virtual assets, and low-interest rates, commercial banks have entered into competition to secure deposit customers such as those receiving salaries or pensions, which has reignited their interest in group savings account services.
However, it remains uncertain whether the group savings account function, previously regarded as the 'cash cow' for internet banks, can succeed in commercial banks as well. While this area has already been dominated by internet banks, the group savings account service offered by commercial banks, with the exception of Shinhan Bank, requires that all participants be customers of the bank to actually utilize it. Concerns have been raised regarding whether commercial banks can surpass the community-based services offered by internet banks like KakaoBank.
A representative from an internet bank noted, 'Since the market is already dominated by internet banks, commercial banks are offering a wider variety of benefits than before.' However, they observed that the interest competitiveness of commercial banks is lower than that of internet banks, and there are restrictions on transfer limits for a certain period when opening new accounts, making it crucial to find ways to overcome these challenges.