Service Expansion from 61 to 593 Branches
Ahead of Planned March Schedule
Intensified 'Free Currency Exchange' Competition Due to Toss Bank Foreign Currency Account Popularity
Hana Financial Group has taken the first step, and Toss Bank has ignited a fierce competition in the financial sector for free currency exchange fee services. Commercial banks are rushing to launch cards specialized for overseas use. Hana Financial, which initially enjoyed the benefits of early market dominance, is also expanding its services. Up to five financial companies are expected to launch related services within this year.
Hana Bank’s branch-exclusive product, the ‘Hana Travelog Check Card,’ has been available for immediate issuance at all Hana Bank branches (excluding three locations: Incheon International Airport Branch, Incheon Airport New Town Sub-branch, and Incheon Airport Terminal 2 Sub-branch; total 593 branches) since the 22nd. This implementation was brought forward by about two weeks from the originally planned expansion in March.
The immediate issuance service allows customers to receive the Travelog Check Card instantly at Hana Bank branches, whereas previously it was only available through Hana Money and Hana Pay. Since its launch on the 18th of last month, the card was only issuable at 61 major regional branches. A Hana Card official stated, “Since the immediate issuance service began last month, customer demand has increased, so we advanced the branch expansion plan to provide more benefits.”
This move is analyzed as an effort by Hana Financial Group, which is leading the free currency exchange competition, to further capitalize on its first-mover advantage. The Hana Financial Travelog Card, launched in July 2022, surpassed 3 million service subscribers within 500 days. It also exceeded a cumulative exchange amount of 1 trillion KRW within 18 months. Hana Card held about 40% of the domestic overseas debit and check card usage last year, ranking first. To maintain this position, they are enhancing the immediate issuance service and adding benefits such as automatic exchange and payment through linked accounts. The free currency exchange fee period for 26 currencies, initially scheduled until March this year, has also been extended until December.
The first challenger to Travelog was Toss Bank. On the 18th of last month, Toss Bank launched a foreign currency account boasting ‘lifetime free currency exchange fees.’ Toss Bank explained that it is the first domestic financial company to offer real-time currency exchange for 17 currencies 24/7 without fees. The account surpassed 600,000 openings within 21 days of launch, and more than 500,000 customers linked Toss Bank check cards to their foreign currency accounts. On average, about 28,500 accounts were newly opened daily, meaning one account was opened every three seconds.
Following Toss Bank’s service launch, commercial banks have rushed to join the ‘free currency exchange’ competition. As a latecomer, they are preparing and launching services with more benefits. On the 14th, Shinhan Bank released the ‘SOL Travel Check Card,’ offering 100% favorable exchange rates for 30 currencies. Cardholders can use over 1,200 airport lounges worldwide once every six months for free. They also receive up to 10% cashback at over 400 overseas affiliated stores. Additionally, major overseas stores (such as Starbucks in the U.S.) offer a 5% discount. Thanks to these benefits, the card recorded sales of over 100,000 units within six days of launch.
KB Kookmin Bank announced it will launch the overseas-use specialized card ‘KB Kookmin Travelers Check Card’ in April. Benefits will include waived currency exchange fees and additional discounts when using KB Pay. Before the card launch, KB Kookmin Bank is offering a ‘Daily 100% Exchange Rate Discount Coupon’ that waives fees for currency exchange customers. Additionally, Woori Bank and KakaoBank are reportedly considering launching cards or related products including waived currency exchange fees in the first half of this year. NH Nonghyup Bank and K Bank are also preparing similar products, although their launch dates have not yet been determined.
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