Research findings have been raised indicating that the procedures prior to the closure of bank offline branches are unclear, necessitating policy enhancements.
Lee Shin-young, a researcher at the Korea Institute of Finance, presented these findings on the 28th during a symposium titled 'Challenges for Banks in the Digital Age: Management Efficiency and Inclusive Finance' held at the Bank Hall in Jung-gu, Seoul. This symposium was co-hosted by the Korea Institute of Finance and the Korea Financial Association.
The researcher noted, 'The problems caused by branch closures include involuntary digital channel use by the elderly and digital financial exclusion,' adding, 'the pace of branch closures is outstripping the elderly's pace of digital adaptation.'
Examples of regional imbalance issues caused by branch closures were also introduced. According to a report by the Australian Parliament published in 2024, areas with fewer bank branches see a reduced financial accessibility for residents, exposing them to greater risk of financial accidents. Additionally, regions without branches become factors hindering the development of local economies by trapping small business operations.
The researcher cited enhancing pre-impact assessments as a response to the trend of branch closures. She pointed out, 'When looking at the pre-impact assessments currently being conducted, some aspects, such as customer mobility convenience, can be condensed, making it difficult to assess customers' expense of using financial services.' She emphasized, 'Banks must carefully consider what services existing branch customers have utilized and how it impacts their economic lives.'
Suggestions for policy enhancements aimed at financial authorities were also discussed. The researcher said, 'A review of policies is necessary to address the deficiencies in pre-impact assessments, such as establishing standards for incorporating external expert opinions.'