63% of All OnBank Users Are Aged 20-40
6 Out of 10 Popular Products Are Exclusive to Non-Face-to-Face Services
[Asia Economy Reporter Song Seung-seop] Shinhan Credit Union analyzed and announced financial trends based on member and transaction data it holds.
According to the analysis results on the 12th, the number of subscribers to Shinhan Credit Union Central's own platform, ‘OnBank’, has surpassed 1 million. OnBank is the first mobile application in the mutual finance sector that allows non-face-to-face membership registration and capital deposit opening. Since its launch in January last year, about 60,000 new users have continuously joined monthly, and deposits and savings exceeded 1 trillion won within six months of launch.
It was explained that the influx of ‘interest rate nomads’, mainly in their 20s to 40s, was frequent. Among all OnBank users, the 20-40 age group accounted for 63%. Among them, those in their 40s were the largest at 26.7%, followed by those in their 30s (22.6%) and 20s (13.7%).
The products leading the popularity were found to be OnBank-exclusive products. Among the top 10 products by account openings, six were mobile-only products. The most opened financial product was ‘Union Jeonggi Deposit’. Shinhan Credit Union’s Union series allows users to enjoy tax-exempt benefits through mobile without visiting local credit unions. Interest income tax of 14% is exempted, and only a 1.4% special rural tax is charged. The base interest rate also follows the average deposit interest rate of credit unions nationwide, which is higher than commercial banks.
‘e-Paran Savings’ (3rd place), which offers up to 0.6% preferential interest rate when simple preferential conditions such as salary transfer are met, and the parking account ‘Dreaming Box’ (9th place), which pays half the interest of a 12-month fixed deposit on a daily basis, also ranked. A Shinhan Credit Union official explained, “Interest rate nomads seeking even slightly higher interest rates under the ultra-low interest rate trend flocked for tax savings and interest benefits.”
By generation, those in their teens and 20s mainly sought savings products to build lump sums, while those in their 40s to 60s mainly looked for deposit products to grow lump sums. The most subscribed financial product among male OnBank users in their teens was e-Paran Savings, and ‘Lady4U Savings’, Dreaming Box, and ‘Union Jeonggi Savings’ were also popular. For those in their 40s to 60s, both male and female members ranked Union Jeonggi Deposit and fixed deposits as first and second.
Kim Yoon-sik, Chairman of Shinhan Credit Union Central, said, “I would like to express my gratitude to the members who have shown great affection and interest until OnBank reached 1 million subscribers,” and emphasized, “OnBank will lead the financial culture of the post-COVID era as a warm mobile platform combining an advanced digital financial system and the values of Shinhan Credit Union.”
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