Savings Banks: "Protecting Vulnerable Groups and Financial Consumers' Rights is the Shortcut to Survival"

[Asia Economy Reporter Song Seung-seop] Savings banks are undertaking activities to eliminate financial blind spots in order to raise awareness and protect consumer rights. As the transition to non-face-to-face financial services rapidly progresses, they are also conducting educational activities targeting financially vulnerable groups and consumers who adapt slowly.

According to the industry on the 16th, major savings banks such as OK, Pepper, Welcome, and JT have opened and are operating dedicated counters for the elderly and disabled. When financially vulnerable customers visit branches, they are prioritized for service and assistance.

Some banks also provide services for the visually and hearing impaired. Welcome Savings Bank has placed Braille financial transaction agreements at all branches for the visually impaired. These are also posted on the website so that visually impaired individuals can access them anytime.

OK Savings Bank and JT Savings Bank have a ‘Sign Language Communication Center’ for the hearing impaired. Through this center, which provides sign language interpretation services, they help ensure that customers can use financial services without discrimination.

At the level of the Korea Federation of Savings Banks, support is provided to facilitate smooth financial service use for those with low vision. The mobile banking service ‘SB TokTok Plus’ offers a large font service. This targets customers such as the elderly whose vision has deteriorated and who cannot see small text. For important information related to transactions, a separately designed screen with a concise layout is provided to make it easier to understand through a clear interface.

The savings bank industry evaluates that the usage rate of branches by financially vulnerable groups is not low. A savings bank official said, “Although the number of customers visiting branches has decreased recently due to the expansion of non-face-to-face transactions, there are still many customers who prefer face-to-face transactions,” adding, “We are continuously improving the branch counter environment to provide convenient services and benefits to these customers.”

With the enforcement of the Financial Consumer Protection Act, protecting consumer rights has become important, and related measures are continuing. Especially with the overlap of the COVID-19 spread and the activation of non-face-to-face financial transactions, financial fraud crimes targeting vulnerable groups such as voice phishing have increased. The damage is also concentrated on the elderly who are accustomed to direct transactions like passbook transactions.

In response, KB Savings Bank established a separate Consumer Protection Headquarters and Consumer Protection Department last year to protect financial consumers. They handle various tasks for consumer protection, including institutional improvements for consumers, on-site inspections, and monitoring after product sales.

Efforts to develop technology to prevent financial crimes are also ongoing. Recently, the focus has been on preventing sophisticated crimes by blocking illegal programs automatically installed on smartphones.

SBI Savings Bank and Welcome Savings Bank introduced a smartphone illegal program detection service based on artificial intelligence (AI) technology last year. When using the mobile banking applications provided by these savings banks, customers are notified of illegal programs installed without their knowledge and are guided to delete them. This service preemptively blocks financial fraud conducted through illegal programs and provides safe financial transactions.

Some banks implement policies that directly reflect consumer needs. The customer panel system of OK Savings Bank and Welcome Savings Bank is a representative example. The customer panel system listens to the opinions and ideas of financial consumers and reflects them in overall management. It is a way for financial companies to provide services directly based on what consumers need.

The implementation of consumer-first policies and services has led to a decrease in complaints. According to the disclosure by the Korea Federation of Savings Banks this month, the number of complaints at 10 savings banks with total assets exceeding 1 trillion won decreased by 43% compared to the same period last year. Compared to the first half of this year, when the Financial Consumer Protection Act was applied, complaints also decreased by 22%. The industry evaluates that complaints have decreased due to self-purification efforts despite the strengthening of the Financial Consumer Protection Act.

Another savings bank official emphasized, “It has become important to convey that savings banks are safe institutions you can trust and transact with,” adding, “Various types of services and policies are expected to continue to emerge from savings banks to protect consumer rights and practical benefits.”