Catch Gen Z's Financial Independence... Escape 'Eomka' with New Features for Transfers and Payments (Comprehensive)

KB Kookmin Bank Gen Z Financial Platform 'Liiv Next'
Shinhan Bank Prepaid Electronic Payment Method for Teens 'Shinhan Meme'

[Asia Economy Reporter Park Sun-mi] Starting from January next year, minors aged 14 to under 19 will also be included in the MyData (personal credit information management) service, accelerating the expansion of financial services targeting youth in the financial sector. Financial institutions are actively moving to secure future customers by launching credit cards exclusively for minors and establishing prepaid electronic payment methods that allow transfers, withdrawals, and payments without ID or bank accounts.

According to the financial sector on the 24th, KB Kookmin Bank recently launched ‘Liiv Next,’ a financial platform exclusively for Generation Z. This platform focuses on financial independence for minors who have had difficulty conducting independent financial activities due to the lack of ID or bank accounts. Teen customers without ID can access the prepaid electronic payment method ‘Liiv Pocket’ through mobile phone authentication, enabling transfers, deposits, and ATM withdrawals and deposits.

The platform also includes a Pay function, allowing minors without cards to make online and offline payments up to a daily limit of 300,000 KRW. Based on this Generation Z-exclusive platform, Kookmin Bank plans to offer youth savings and AI-based financial services.

Shinhan Bank also introduced a rechargeable pay service at the end of last month in collaboration with Shinhan Card, which has received positive responses by allowing teenagers to use it freely both online and offline. The prepaid electronic payment method for teens, ‘Shinhan Meme,’ can be used without a bank account.

Users can transfer money without fees via the bank app SOL and the card app Shinhan Play, and earn 5% points back on spending at convenience stores, music streaming services, and app markets frequently used by teenagers. Separately, Shinhan Bank signed a business agreement with the education company Daekyo and has started building the ‘Kids Bank’ platform targeting elementary and middle school students. The goal is to create a converged platform based on education, finance, and entertainment.

Hana Bank’s Financial Platform for Generation Z: iBooja App

Hana Bank has been operating the Generation Z-exclusive platform ‘iBooja App’ since June, which children can join with parental consent via their parents’ mobile phones. The app includes functions for collecting (allowance, part-time jobs, savings), spending (payments, transfers, ATM withdrawals), and growing money (stock investment simulation). Notably, minors can use the app to make simple payments at Zero Pay affiliated stores such as convenience stores, snack bars, and stationery shops, send money to other app members, and withdraw up to 300,000 KRW from ATMs.

Along with this, Hana Bank launched the iBooja Card, a prepaid card dedicated to payments via the iBooja app. Without bank transactions or account openings, children can apply directly through mobile phone authentication under their own name regardless of age. Especially, children under 14 can apply with parental consent via mobile phone, and the card can be used without annual fees or other charges.

The credit card industry has also entered the market for credit cards that teenagers can use directly from the second half of this year through the Financial Services Commission’s innovative financial service system. Until now, teenagers only used ‘Mom and Dad’ cards, but now a window has opened for them to receive credit cards in their own names in the form of ‘youth family cards.’

Currently, Samsung Card and Shinhan Card provide related services. To address concerns about misuse of youth cards, each card company sets monthly and per-use limits and restricts usage to sectors such as transportation, stationery/bookstores, convenience stores, and academies. These measures aim to prevent misuse and fraudulent use of cards by minors.

The expansion of financial services targeting youth in the financial sector aligns with regulatory easing by financial authorities.

While MyData service providers are restricted from using or providing minors’ credit information for purposes other than inquiry and analysis, minors will be included in the scope of application. However, the scope of information collection is limited to financial products mainly used by minors, such as demand deposit accounts, check/prepaid cards, and prepaid balances.

An official from a bank explained, "Generation Z is the future leader of finance, and internet banks are expanding financial services for youth to secure the market. Since minors will also be included in the MyData service, the moves by commercial banks to target youth will accelerate."