In-Bank Era of 30 Million... Hong Min-taek, CEO of Toss Bank, "We Will Make It the Most Preferred Bank" (Comprehensive)

Toss Bank Reaches 3.6 Million Subscribers and Surpasses 4 Trillion KRW in Loans
Launches Group Account and Financial Product Recommendation Services

Hong Min-taek, CEO of Toss Bank

[Asia Economy Reporter Bu Aeri] Toss Bank announced on the 28th that it has surpassed 3.6 million subscribers and 4 trillion KRW in loan balances. Toss Bank will also newly introduce group accounts and financial product recommendation services.

Hong Min-taek, CEO of Toss Bank, held a media day at the Myeongdong community 'Masil' in Seoul on the same day and said, "Gathering 3.6 million people in 9 months means that about 14,000 people join Toss Bank every day," adding, "This proves that (Toss Bank's) services are solving the lack of financial services."

The age distribution of Toss Bank subscribers also showed a diverse spread. Looking at the customer proportions by age, 20s (25.1%) and 30s (25.4%) were as many as customers in their 40s (23.8%) and 50s and above (19.2%).

Toss Bank achieved a loan balance of 4.2 trillion KRW within 6 months after resuming operations. Toss Bank, which had suspended loan operations last year, resumed loan services from January this year. CEO Hong explained, "36% of this is supplied to low- and medium-credit borrowers, and we take pride in this," adding, "This is because we are successfully achieving the goal we set ourselves to provide loans to actual users, and the figure is overwhelmingly higher than other internet-only banks."

On the same day, CEO Hong also introduced products such as a demand deposit account with an annual interest rate in the 2% range, a daily interest payment service, and the 'Kiwo-bwayo Savings' product. About 1.5 million users are using the interest payment service, and a total of 66.7 billion KRW has been paid in interest. Toss Bank's non-face-to-face, unsecured, and uncollateralized personal business loan product, the first of its kind among internet-only banks, reached 530 billion KRW in just over four months since its launch.

Toss Bank also revealed plans for new products such as group accounts. CEO Hong announced that the 'Toss Bank Group Account' product will be launched soon. Regarding the criticism that it is similar to Kakao Bank's group account, he said, "Once it is launched, I believe concerns about similarity will be unfounded."

Toss Bank is also scheduled to start the financial product recommendation service 'Wealth Management' next month. CEO Hong stated, "We will collaborate and partner with various participants to introduce diverse financial products to Toss Bank customers."

Toss Bank plans to launch loan products such as jeonse deposit loans and mortgage loans in the future. He emphasized, "We will expand Toss Bank's product and service portfolio step by step to make it the most preferred bank by customers."

On the 1st of next month, Toss Bank will release 'Toss Bank Check Card Episode 3' and start Citi Bank refinancing loans. Existing Citi Bank customers can conveniently refinance loans via mobile, with the entire process from eligibility check to execution developed in-house. A 0.3 percentage point discount on interest rates compared to existing Citi Bank rates will be offered.

Regarding criticisms that interest costs are excessive, CEO Hong said, "The deficit in the loan-deposit segment was resolved last May," adding, "Profitability is rapidly improving at the desired scale and speed."

Meanwhile, including Toss Bank's 3.6 million subscribers, internet-only banks have entered the era of 30 million subscribers. Kakao Bank has 19.13 million subscribers, and K Bank has 7.8 million.