Commercial Banks Compete in Instagram Marketing Battle... "We Want to Communicate with the MZ Generation" (Comprehensive)

5 Major Banks Instagram Followers Exceed 1.28 Million
NongHyup Bank Gains 200,000 in One Year with Aggressive Marketing
Brand Exposure Helps Shed Conservative Image

[Asia Economy Reporter Song Seung-seop] Competition among commercial banks for Instagram marketing is heating up. This is interpreted as an effort to capture the MZ generation (Millennials + Generation Z), which has emerged as a major customer base due to digital and mobile innovation across the financial industry. This phenomenon is prominently reflected in the follower trends of major commercial banks' Instagram accounts.

According to the banking sector on the 10th, the combined Instagram account followers of the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) reached approximately 1,279,000. This figure surpasses the 1,167,700 YouTube channel subscribers. A total of 3,597 posts have been made, averaging 3 to 4 posts per week.

The commercial bank with the most followers is NH Nonghyup Bank, securing 765,000 followers. Second is Shinhan Bank with 220,000 followers, followed by KB Kookmin Bank with about 164,000. Next are Woori (76,000) and Hana (54,000). SC First Bank and IBK Industrial Bank also have 55,000 and 45,000 followers respectively. Amid the Instagram marketing boom, KDB Industrial Bank also started operating a page in May last year.

The follower growth rate of financial institutions' accounts is also evaluated as very steep. NH Nonghyup Bank increased from 550,000 followers a year ago by 200,000 through social network service (SNS)-exclusive events held twice a week. For example, if followers follow the account on their way to work, winners are announced within 30 minutes and given coffee coupons, or participants receive prizes by taking simple surveys.

Unlike other banks, it is also analyzed that the friendly communication by directly following 6,600 general customers had an impact. The SNS operator is called ‘Nongdaejang,’ meaning ‘Nonghyup Bank Captain,’ and followers are affectionately called ‘Nongatti,’ derived from the pure Korean word for close friends, ‘Atti.’ This naming was selected directly by customers through a contest event.

An NH Nonghyup Bank official explained, “This is part of marketing targeting Instagram users, including the MZ generation,” adding, “It consists of financial content that can be useful information, snackable content, and easy-to-participate events.” The official evaluated the purpose of Instagram operation as “communication and promotion with followers, and expansion of SNS channels.”

Overwhelming Instagram Usage Rate Among MZ Generation... "Effect of Breaking Away from Conservative Image"

Shinhan Bank also increased its followers from about 70,000 to 220,000 during the same period. Shinhan Bank created its Instagram account in 2016 and completely revamped the page early last year. It is known that the operation purpose, content direction, and concept were all significantly revised to differentiate from other banks.

Recently, Shinhan Bank has been using its AI banker character ‘Molly.’ The first half of this year’s digital talent recruitment, which started last month, was announced through ‘IGTV’ on Instagram, and internal short-form video content called ‘Reels’ was used to promote the company’s character.

KB Kookmin Bank also opened its Instagram page in 2016. It consistently posts various series and webtoons. It also includes everyday stories not directly related to finance. The ‘Stay Strong, Manager Kim’ series is a representative example that depicts the daily life of office workers. Recently, the webtoon ‘Don’t Worry’ addressed topics such as spring shopping and imposter syndrome.

Banks are putting effort into Instagram because it has a great brand exposure effect and allows them to break away from the heavy and stale image of commercial banks. According to research by KT Economic Management Research Institute and Digital Lab DMC Media, South Korea ranks third in the world in SNS usage rate. Especially, the average monthly Instagram users in their 20s and 30s number 9.33 million, the highest among SNS platforms.

Data released by WiseApp, an app and retail analysis service, in November last year also showed statistics that domestic Instagram users and usage time both surpassed Facebook. At that time, Instagram had 14.24 million users, while Facebook had 10.16 million. Instagram recorded 4.7 billion minutes of usage, surpassing Facebook’s 3.9 billion minutes.

An official from a commercial bank emphasized, “Instagram makes it easy to show the side of commercial banks that could not be shown in regular advertisements,” adding, “It is a means to communicate closely with the younger generation.”