Bank Apps Offering Shopping and Delivery Services... Transforming into Lifestyle Platforms

Significant Expansion of Lifestyle Service Features in an App Previously Focused Mainly on Financial Services

Hana Bank App Hana One Q

[Asia Economy Reporter Park Sun-mi]Office worker Kim Seul-gi (33), who was about to purchase laundry detergent, accessed a banking application (app) on her smartphone instead of a shopping platform. After buying an item listed at a cheaper price than on shopping platforms, she stayed within the app to check nearby real estate prices in order to plan her move.

Domestic commercial banks are significantly expanding lifestyle service functions in their apps, which were previously focused mainly on financial services such as account balance inquiries, transfers, and financial product subscriptions. This aims to create synergy effects with financial tasks, and noticeable changes are emerging in how consumers use banking apps.

According to the financial sector on the 21st, Hana Bank operates a separate ‘Life’ section within its ‘Hana One Q’ app, where users can access services such as insurance diagnosis, real estate price inquiries, travel, shopping, and health. This is separate from banking tasks like inquiries, transfers, product subscriptions, product management, foreign exchange, and cards. Users can trade used cars or make reservations at over 300 golf courses nationwide through the banking app.

Shinhan Bank also has a separate ‘Life’ section within its ‘SOL’ app. It includes services reflecting consumer discount payment trends such as ‘Zero Pay,’ as well as real estate, medical expenses, travel, and baseball. Users can obtain information on houses listed for sale, auctions, and pre-sale/subscription within the bank app, and if funds are insufficient for home purchase, the app can recommend linked products offering optimal interest rates. Shinhan Bank is also preparing to allow access to a food delivery app scheduled to launch in July or August through the banking app.

Banking Synergy Effects Targeted by Linking Lifestyle Services

Woori Bank’s Woori One Banking app is also receiving positive responses by adding lifestyle convenience services closely related to daily life. The ‘Quick Claims Service for Actual Expense Insurance,’ launched on January 22, exceeded 7,300 applications in less than three months. Using this service, actual expense insurance subscribers can easily claim insurance payments through Woori One Banking without paper documents such as medical certificates. KB Kookmin Bank operates a separate lifestyle finance platform called ‘Liiv.’

These changes reflect banks’ strategies that the more time customers spend within the banking app and the more frequently they access it, the higher the utilization of the bank’s financial services becomes. A bank official said, “Banks no longer try to limit their apps to financial platforms. They are competing to evolve into diverse lifestyle service platforms including not only lifestyle finance such as insurance, investment, and bill payments but also shopping, delivery, health management, and entertainment.”

The expansion of lifestyle services through banking apps can increase banks’ capabilities in non-financial tasks, generating additional revenue or creating synergy with financial services.

Kim Hye-mi, a research fellow at Hana Financial Management Research Institute, explained, “Even Japanese regional banks, which struggled due to economic downturns and prolonged low interest rates, have expanded non-interest income by entering various non-financial businesses such as lifestyle service matching, distribution of local specialties, building leasing, and personnel introduction. In South Korea, as discussions on expanding business areas including allowing platform business for banks are becoming more active, domestic banks need to closely observe the cases of Japanese banks.”