[Financial Microscope] Group Accounts Now Manage Household Finances, Intensifying Competition Among Banks

"KakaoBank, the Pioneer, Surpasses 12 Million Group Account Users"
Balances Exceed 10 Trillion Won, Marking Steady Growth
Trend Shifts Toward Customers in Their 30s and Older, and Use for Living Expenses
Shinhan and Kookmin Bank Launch Specialized Services
Regional Banks and Mutual Finance Institutions Join the Fray

The popularity of group accounts initiated by KakaoBank remains strong. Even after several years, competition within the banking sector continues to intensify, with new products being launched and the scope of services expanding. This trend is attributed to the advantages of easily attracting low-cost deposits and acquiring new customers.

According to the financial industry on September 10, KakaoBank's group account balances have exceeded 10 trillion won, with more than 12 million customers. This milestone was achieved seven years after launch. The balance reached 1 trillion won in less than a year, 2 trillion won in one year and eight months, and 5 trillion won in four years and two months, showing a steep growth trajectory. KakaoBank explained that the group account has continued to grow steadily, with a net increase of 2.2 trillion won last year alone.

Looking at the average balance per account, it is clear that customers are actively using group accounts. The average balance increased from 890,000 won last year to 930,000 won in the first half of this year. The amount spent using check cards linked to group accounts reached 2 trillion won in the first half of this year. KakaoBank introduced a dedicated check card for group accounts in April last year, and cumulative issuance surpassed 1 million cards within a year. Given the nature of group accounts, where large payments are frequently made, the check card offers real-time random cashback of either 3,000 won or 300 won for payments over 50,000 won, with no cashback limit. As of July, the total accumulated cashback benefits amounted to 3 billion won.

The number of group account users continues to grow. As of the end of last month, the age distribution of group account users was 16.5% in their 20s or younger, 28.3% in their 30s, 25.7% in their 40s, and 29.5% aged 50 or older. KakaoBank explained that the proportion of customers in their 40s or older has nearly doubled compared to December 2019, one year after launch. In terms of group types, social gatherings and family/living expenses accounted for more than half, at 30.1% and 26.7%, respectively.

Banks have begun to focus on group types and customer demographics. For living expenses, the regular monthly outflows are predictable and often amount to several million won, making it ideal for attracting low-cost deposits. The fact that customers in their 30s and older, who have purchasing power and regularly use group accounts for family and living expenses, has also prompted banks to launch new services targeting this demographic.

Shinhan Bank, which launched a group account in February this year featuring singer and actor Cha Eunwoo as its advertising model, recently introduced a group account specifically for married couples and couples. Unlike the existing SOL Group Account, the new product prioritizes transaction history on the main screen and adds features for managing living expenses, such as utility bill and local tax payments.

Kookmin Bank launched the "Family Banking" service on its KB Star Banking platform, covering couples, children, and the entire family. This service allows users to manage everything from a couple's living expense account to minors' accounts, as well as family insurance and special dates, all in one place. In the couples section, users can manage a joint living expense account using existing group account features and view their pension assets and plan for retirement using the pension sharing function. In the children's section, parents can use the teen-focused "StarTeens" platform to open and manage their children's savings, installment savings, and funds. In the family section, users can view all family members' insurance details at a glance using MyData, and register birthdays and anniversaries to receive reminders.

Toss Bank has also added an automatic apartment maintenance fee payment feature to its group account service. Previously, this was only possible with personal accounts, but now it has been extended to group accounts. This feature allows the registration or change of co-leaders for the group, and can be managed through a voting process requiring the consent of all authorized group members.

Regional banks and mutual finance institutions are also joining the "war" over group accounts. iM Bank renewed its group account service earlier this year. The application allows easy sign-up, and up to 100 members can join a group. The account can also be used as a parking account, with preferential interest rates based on performance, offering up to 2.01% per year. For example, if the final balance is between 1 million and 5 million won, there is a preferential rate of 1.00 percentage point per year, and if one additional member applies for automatic group fee transfer through iM Bank, an additional 0.20 percentage point (up to 1.00 percentage point per year) is provided.

Busan Bank also completely revamped its group account service in June. It added a feature to convert existing deposit and withdrawal accounts into group accounts. The process was simplified so that when a group account is newly opened via mobile banking, users are automatically enrolled in the group management service without needing to apply separately.

Saemaeul Geumgo launched its group account service for the first time on August 25. The group leader can easily share schedules and announcements with members via the group bulletin board, and members can set up notifications to receive important updates such as changes to fee rules or new announcements related to the group.