"MZ Customers Only"... Commercial Banks Creating Exclusive Platforms

Fierce Competition to Capture Future Economic Agents MZ Generation
Providing Differentiated Content and Services through MZ-Exclusive Platforms

[Asia Economy Reporter Kim Jin-ho] Major commercial banks are focusing on building dedicated platforms targeting the MZ generation (Millennials + Generation Z). This move aims to strengthen differentiated content and services to capture the MZ generation, the future economic agents. It is interpreted as a strategy to shed the old-fashioned image of banks and survive in competition with internet banks and fintech companies like KakaoBank, which are already familiar to the MZ generation.

According to the financial sector on the 21st, Woori Financial Group has started building an MZ-specialized platform, targeting the end of this year. The platform plans to actively reflect the trend that the MZ generation shows high interest in investing in various assets such as stocks, real estate, and virtual assets. Additionally, it will be linked to Woori Financial’s future plans to expand its securities division, building a platform specialized in investment support. A financial sector official said, "It is expected that a corporate subsidiary will be established for the platform."

Woori Bank has also strengthened its strategy to capture the hearts of the MZ generation. A representative example is the establishment of an MZ marketing team composed mainly of young employees below the manager level. The goal is for the MZ generation to directly develop the services they want.

KB Kookmin Bank launched a financial platform exclusively for teenagers called ‘Liiv Next’ in November last year. The representative service is ‘Liiv Pocket,’ a prepaid electronic payment method that can be opened even by teenagers aged 14 to 18 without an ID card. It can be opened with just a mobile phone in the user’s name, and Liiv Pocket has a unique number, allowing various financial transactions without an account. Especially for teenagers more familiar with convenience stores than banks, Liiv Pocket can be recharged without fees at CU convenience stores nationwide. The usage limit is restricted to 300,000 KRW per day and 2 million KRW per month.

Shinhan Bank also provides specialized platforms and services segmented for the MZ generation. For teenagers, it offers the ‘Shinhan Meme’ platform, where users can store, transfer, and recharge money without opening an account after mobile phone authentication through the ‘Shinhan SOL’ app.

For those in their 20s, Shinhan Bank provides customized financial products and events under the ‘Hey Young’ brand. It offers new concept financial services popular among the MZ generation, such as limited-edition sneakers, and a ‘Coupon Market’ where users can buy and sell unused mobile gifticons, gaining high popularity.

Hana Bank introduced the ‘iBuja’ app exclusively for Generation Z in June last year. It is a pair-app-based service where parents and children each install the app on their phones and send money to each other via mobile.

These efforts by major financial companies to capture the MZ generation are analyzed to be influenced by the limitations of existing financial strategies. Like KakaoBank, they need to provide all financial services through a single platform and actively appeal a flexible and youthful image to the MZ generation.

A financial sector official said, "The MZ generation tends to feel familiarity with the financial service and brand they first encounter," adding, "Making them ‘lifelong customers’ through dedicated platforms and services has become an important task for financial companies."

Son Tae-seung, Chairman of Woori Financial Group, recently emphasized, "By 2030, 60% of the working-age population will be the MZ generation," and urged, "Let’s create a new digital future and become a game changer." This means the group’s future depends on capturing the MZ generation, the core consumer base and future potential customers.