Conditions Added and Cashback Reduced... Why Is Toss Bank Continuously Cutting Benefits?

Concerns Over Negative Margins... Cutting Various Customer Benefits First

[Asia Economy Reporter Kim Jin-ho] Toss Bank has begun to gradually reduce various benefits previously offered to consumers due to concerns over negative interest margins. Following the partial change to the 'unconditional 2% annual deposit interest rate' starting next year, the 'monthly maximum 46,500 won cashback benefit' will also be significantly reduced. It is analyzed that the cause is the increasing difficulty in sustaining the growing interest and cashback benefits amid the inability to issue new loans.

According to the financial sector on the 6th, Toss Bank will reduce the cashback benefits on its check cards starting next year. Until now, Toss Bank has provided a 300 won cashback benefit without performance conditions for payments made at ▲coffee shops ▲convenience stores ▲taxis ▲fast food ▲public transportation using the check card.

However, from the 5th of next month, the benefit for public transportation will be reduced to 100 won per transaction. Also, while previously a 300 won cashback could be received even when purchasing a 1,000 won pack of gum at convenience stores, the minimum amount for cashback will be raised to 3,000 won. Partnership benefits will also be reduced from the existing five locations to two, including GS25 and CU.

Toss Bank will also impose conditions on the 2% annual deposit account. Starting from the 5th of next month, a 0.1% interest rate (before tax) will be applied to deposit amounts exceeding 100 million won.

The reason Toss Bank has begun to reduce various benefits just two months after its launch is analyzed to be due to negative interest margins caused by the complete suspension of household loans. Since new loans, which are a source of revenue, are not being issued, but deposit interest and cashback benefits continue to be paid, deficits are significantly increasing.