[Heated Receiving Competition] ③ Inbaeng Breaks Through with Unique Products... Early Interest Payment, etc.

Internet-only banks are breaking through the high ground battle of deposits by introducing unique deposit products. This is because their interest rate competitiveness has declined compared to the fixed and demand deposit products offered by commercial banks and savings banks that attract deposits.

According to the Bankers Association on the 21st, the interest rates for fixed deposits (1-year maturity) at internet-only banks (Kakao Bank and K Bank) remained at 3.50?3.80% per annum as of the previous day. This is 0.10% and 0.20% points lower at the upper and lower ends, respectively, compared to the five major commercial banks (3.70?3.90%), and more than 0.50% points lower than the average savings bank rate (4.01%).

The interest rates for demand deposit products of internet-only banks, which sparked a parking account craze last year, are similar. The demand deposit interest rates of the three internet banks (Kakao Bank, K Bank, and Toss Bank) range from 2.0% to 2.3% per annum, which falls short not only of savings banks offering 4?5% products but also SC First Bank (2.6%).

Instead, internet-only banks are enhancing their competitiveness by launching unique products aimed at fandoms or services such as 'receiving interest first.' Kakao Bank’s 'Record Account' is a product that allows savings by capturing various moments. Customers can set their own rules to save money along with records whenever their favorite celebrity performs a specific action. For example, if a favorite singer uploads a photo on social media (SNS), a certain amount is deposited.

Because this product targets fandoms, the number of subscribers exceeded about 70,000 within a day of its launch, becoming a 'cash cow product' that increases traffic on the Kakao Bank application. A Kakao Bank official explained, "The fact that it is a demand deposit account but offers a 2% interest rate is also a factor in its popularity."

In the case of Toss Bank, it offers a differentiated 'fixed deposit with interest paid first' product compared to commercial banks. Unlike ordinary deposit products that pay interest at maturity, this product provides interest immediately upon subscription. It offers an annual interest rate of 3.5%, with a maximum subscription limit of 1 billion KRW. However, the subscription period is short, either 3 or 6 months. According to Toss Bank, this deposit continues to grow, with an average daily inflow of 32 billion KRW.

Of course, offering unique deposit products is not exclusive to internet-only banks. Savings banks, which are actively increasing deposit balances, also offer such products. Welcome Savings Bank has introduced a savings product with up to 10% interest linked to walking. Customers just need to join the 'Welbang Walking Service' and walk. They can receive preferential interest rates of 1 percentage point for over 1 million steps annually, 3 percentage points for over 2 million steps, 4 percentage points for over 3 million steps, 6 percentage points for over 4 million steps, and 8 percentage points for over 5 million steps.

Additionally, the Naver Pay Money Hana Account, designated as an innovative financial service by the Financial Services Commission, is increasing the number of available partnership accounts to 1.5 million due to its popularity. The Financial Services Commission held a regular meeting on the 19th and approved the agenda to change the designation details. Known as the Korean version of the Apple Account, this product offers up to 4% annual interest on prepaid recharge funds, which previously did not earn interest, and rewards up to 3% of the payment amount.