In Recession, 'Yono' Replaces 'Yolo'... Financial Sector Targets the 'Yono Tribe'

As the recession prolongs and consumption trends among the 2030 generation change, financial institutions are also seeing popularity in financial products targeting this group. The 'YOLO (You Only Live Once)' generation, who used to not hesitate to spend more than their income for present happiness, is fading away, replaced by the 'YONO (You Only Need One)' generation, which is the exact opposite concept. The YONO generation purchases only what is necessary, pursues practicality over luxury, and does not shy away from frugal financial management. To capture this group, the financial sector is launching products aimed at them.

According to K-Bank on the 2nd, the 'Growing Money Tree' service surpassed 1.5 million cumulative users (as of early August) about half a year after its launch. Released on March 11 this year, Growing Money Tree is an event within the K-Bank application (app) where users receive cash rewards by checking in daily or completing missions. Upon reaching the final stage, users can receive cash rewards ranging from a minimum of 200 KRW to a maximum of 100,000 KRW. The customer who has received the highest cash reward so far earned a total of 104,000 KRW through Growing Money Tree.

KakaoBank has also started targeting the YONO generation centered on the 2030 age group. KakaoBank has received great responses by consecutively launching services such as 'Receive Allowance Daily,' 'Piggy Bank with Megabox,' and the '26-Week Savings Series.' KakaoBank’s 'Receive Allowance Daily' service allows users to earn allowance by completing designated missions such as visiting the homepage or subscribing to social networking services (SNS) through the app. Even if users do not complete missions but visit the app daily, cash accumulates. The '26-Week Savings with McDonald's,' launched in August, is designed to start with a minimum of 1,000 KRW and increase the amount weekly, lowering the entry barrier for young people. Additionally, if users successfully save during designated weeks, they receive six discounts on six popular McDonald's menu items, and upon 26 consecutive weeks of success, they are granted a preferential interest rate with a cumulative annual rate increase of 3 percentage points. The 'Piggy Bank with Megabox' surpassed 500,000 accounts within a week of launch, gaining huge popularity. Notably, 60% of subscribers are from the 2030 generation, marking a successful targeting of the YONO generation.

In the primary financial sector, KB Kookmin Bank was the first to launch a budget phone service. Since its launch in 2019, the number of subscribers exceeded 400,000 as of last year. Following this, Hana Bank and Shinhan Bank also partnered with budget phone carriers to release budget phone plans.

The reason financial institutions are rushing to release products that do not directly generate bank profits is precisely to 'attract customers.' For example, K-Bank’s 'Growing Money Tree' service includes a 'friend invitation' feature using cash rewards as an incentive, which naturally created promotional effects through word of mouth. Additionally, the number of pay service subscribers surged from about 200 per day to over 20,000, an increase of more than 100 times. The budget phone services from primary financial institutions have a similar effect. By combining financial and telecommunications services, they aim to retain more customers as bank clients.

An official from an internet bank said, "The main customer base of internet banks, the 2030 youth, do not have a concept of a primary bank and tend to open accounts at multiple places, frequently moving funds to wherever they receive more benefits." He added, "To retain this key customer base, we are focusing on developing products with significant benefits even if they do not generate immediate profits."