"Only for bank app transfers?"... Transforming into a lifestyle platform (Comprehensive)

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

[Asia Economy Reporter Park Seon-mi] Office worker Kim Seul-gi (33), who intended 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 to plan her move.

Domestic commercial banks in Korea are significantly expanding lifestyle service functions in their banking apps, which were previously focused mainly on financial services such as account balance inquiries, transfers, and financial product subscriptions. This move aims to create synergy with financial tasks, and noticeable changes are emerging in how consumers use bank 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 bank app. By embedding lifestyle-oriented partnership services in the bank app, Hana One Q also offers unique rewards to its users. Hana Bank plans to continue expanding partnerships with startups and lifestyle service sectors to make Hana One Q more integrated into customers’ daily lives.

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

Woori Bank’s Woori One Banking app has also added lifestyle convenience services to its financial offerings, receiving positive responses. The ‘Quick Claims Service for Actual Expense Insurance,’ launched on January 22, recorded over 7,300 applications in less than three months. This service allows actual expense insurance subscribers to 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.’

Seeking Synergy Effects by Linking Lifestyle Services with Banks

This change reflects banks’ strategy that increasing the time customers spend and frequency of access within bank apps will enhance the utilization of financial services.

A bank official said, "Banks no longer want to limit their apps to financial platforms," adding, "They are competing to evolve into diverse lifestyle service platforms including insurance, investment, utility bill payments, as well as shopping, delivery, health management, and entertainment." Another bank official also stated, "We are expanding lifestyle-oriented convenience services," and "Banks will continue to provide innovative services centered on customer experience."

Expanding lifestyle services through bank apps can increase banks’ capabilities in non-financial operations, generating additional revenue or creating synergy with financial tasks.

Kim Hye-mi, a researcher at Hana Financial Management Research Institute, explained in a recent report, "Even regional banks in Japan, which struggled due to economic downturns and prolonged low interest rates, have expanded into various non-financial businesses such as lifestyle service matching, distribution of local specialties, building leasing, and personnel introduction to increase non-interest income." She added, "As discussions on expanding business areas, including allowing platform businesses for domestic banks, are gaining momentum, domestic banks need to closely observe the cases of Japanese banks."