Shinhyup's 'OnBank' Surpasses 10 Trillion KRW in Deposits and Savings in Less Than 2 Years Since Launch

[Asia Economy Reporter Song Seung-seop] The mobile platform of the National Credit Union Federation of Korea, ‘On(ON)Bank,’ has surpassed 10 trillion won in deposits and savings just 1 year and 11 months after its launch.

According to the Credit Union on the 7th, as of the end of October, the total amount of deposits and savings in the entire credit union was 108.8 trillion won. Of this, nearly 10%, or 10.3748 trillion won, came from deposits and savings through OnBank. On average, about 60,000 new users continue to join every month, and the number of subscribers has now exceeded 1.35 million.

The rapid growth of OnBank is largely attributed to the benefits of low tax rates. In fact, 3.541 trillion won, which accounts for 34% of OnBank’s deposits and savings, was attracted through subscriptions to low-tax products. These low-tax products used to require visiting a branch in person, but by implementing them on OnBank, many subscribers have been drawn in.

The Credit Union also evaluated customer satisfaction with the simple transfer service as high. The simple transfer allows account transfers up to 3 million won without security devices like OTP. Within the limit, up to 1 million won can be easily sent via KakaoTalk or messages. As of last month, 92% of all transfer transactions were conducted through simple transfers. If the security device authentication process is completed once, transfers up to 10 million won per day (5 million won per transaction) are possible.

Exclusive mobile products are also attracting attention. The so-called Union series is a dedicated product with a common interest rate applied based on the average deposit interest rate of the credit union. It also offers a tax exemption benefit that waives the 14% interest income tax.

Lee Sang-yoon, Head of the Digital Finance Division, emphasized, “OnBank is the first digital innovation in the mutual finance sector that enables non-face-to-face membership registration,” adding, “We will introduce unique digital human services of the credit union, from simple deposit and savings transfers to mobile quick loan services, as well as subscription and claims for mutual aid products.”