SBI Savings Bank 'Cider Bank' Creates a Stir Among Young People... "Non-face-to-face and High Interest Rates Worked"

Subscriber Count Approaching 500,000 Milestone

Executive Director Hyun-guk Yoo, who oversaw the development of Saida Bank at SBI Savings Bank, is explaining the main services and products of Saida Bank at the launch ceremony.

[Asia Economy Reporter Kim Min-young] SBI Savings Bank's 'Soda Bank' application (app), targeting the younger generation, is creating a sensation. Since its launch in June last year, the ordinary deposit balance has exceeded 1.5 trillion KRW in about a year, and the number of subscribers is on the verge of surpassing 500,000. The combination of ultra-low interest rates and the activation of non-face-to-face (untact) services is accelerating the influx of new customers.

According to the financial sector on the 10th, the ordinary deposit balance of the Soda Bank app recorded about 1.5 trillion KRW as of the end of last month. After surpassing 1 trillion KRW at the end of February, an additional 500 billion KRW was deposited in four months.

The Soda Bank app is SBI Savings Bank's ambitious proprietary mobile financial platform launched in June last year. It attracted attention by paying 2.0% annual interest on ordinary deposits, which can be deposited and withdrawn anytime without any conditions. Unlike fixed deposits, there are no period conditions such as one or two years, no requirement for check card usage, or monthly payment limits, making it especially popular among young people as a 'parking account' to temporarily park money.

Within a year of its launch, it attracted nearly 500,000 subscribers. As of the end of last month, the number of subscribers reached 474,000. It gathered 220,000 subscribers within six months of launch, and increased by about 250,000 in the first half of this year.

Despite the negative perception of being a secondary financial institution, it is gaining popularity. Young customers compare Soda Bank on the same level as internet-only banks like Kakao Bank or major bank apps. Since deposits are protected up to 50 million KRW, they prefer non-face-to-face products that offer slightly higher interest rates.

However, SBI Savings Bank lowered the Soda Bank ordinary deposit interest rate to 1.5% starting today. This follows a reduction to 1.7% last month, marking another cut within a month. A company official explained, "This reflects the 0.5 percentage point rate cut by the Bank of Korea in the deposit interest rate." Major banks and internet banks also lowered deposit product interest rates after the Bank of Korea cut rates in May.

Although customers have become 'caught fish,' 1.5% is still a high interest rate, so the popularity of the Soda Bank app is expected to continue for the time being.