Join as a Member via App... Trying Shinhan OnBank

First in Mutual Finance Sector
Non-face-to-face Member Enrollment

[Asia Economy Reporter Kim Min-young] It is now possible to join as a member of a credit union using a smartphone. The National Credit Union Federation of Korea has launched ‘On(on)Bank,’ a mobile integrated platform that allows membership registration on smartphones for the first time among mutual finance institutions. This is expected to make access to mutual finance companies, which previously had many branches but low accessibility, much easier. Members can enjoy tax-exempt benefits of up to 30 million KRW, so non-face-to-face membership registration via mobile is expected to increase in the future.

On the 27th, after trying the OnBank application (app) from the credit union, its simplicity and intuitive screen layout, comparable to internet-only banks like KakaoBank, were visually appealing.

When you open the app, you can log in instantly using a simple password, fingerprint authentication, or pattern authentication. Compared to other commercial bank apps, the login time is not long.

The main screen is divided into two sections: banking and mutual aid (insurance), adding to its simplicity. On the main screen, users can view all their accounts at a glance. Through this app, you can open accounts non-face-to-face and use deposit and loan products sold by the credit union. Basic functions like transfers and inquiries are included.

The app also offers a ‘small amount transfer service’ that allows immediate transfers up to 2 million KRW without security media. Social network service (SNS) transfers are possible up to 1 million KRW. There are no fees.

You can also subscribe to mobile-exclusive products. If you join a common interest rate product applying the average interest rate of credit union deposits, you can enjoy the tax-exempt benefits granted to mutual finance institutions (only bearing the 1.4% agricultural special tax).

To facilitate the activation of various gatherings and clubs, the ‘On (溫) Meeting Account,’ which allows convenient management of shared funds, has also been launched.

The most notable feature is that you can join or withdraw from a local credit union as a member non-face-to-face through the OnBank app. Previously, to join as a member of a mutual finance institution and open a share deposit account, you had to visit a branch, but this hassle has been eliminated.

First, if you do not have a credit union account, you need to open a deposit and withdrawal account non-face-to-face. The interest rate on this account reaches 1.20% per year. You enter your home address, work address, and workplace name, then take a photo of your ID. This takes about 5 minutes.

Next, press ‘Join Membership’ in the app and complete mobile phone identity verification; this completes the second step. Then, a list of local credit unions based on your residential address appears. Select the credit union you want to join and proceed with the registration process. You can also join a credit union in the area where your workplace is located, but in this case, you must obtain a certificate of employment, take a photo of it, and attach it.

Additionally, when joining for the first time, you must open a share deposit account and deposit at least 10,000 KRW as share capital. The share capital is refunded when you withdraw from the membership. It takes about 20 minutes to become a credit union member this way.