According to the Financial Services Commission, the number of branches decreased from 7,623 at the end of 2011 to 5,794 at the end of 2023. On the other hand, according to the National Statistical Office and others, 70% of the elderly go directly to stores and make financial transactions. It was found that 65% of the purposes that consumers use stores were deposit and installment savings, loan counseling and application, and deposit and withdrawal of large amounts and checks or exchange.
In light of this financial environment, the authorities allowed the bank agency business, allowing consumers to do simple tasks face-to-face even in non-bank stores. However, the scope of work is allowed only to the minimum, such as customer counseling, credit information inquiry, transaction application receipt, loan approval, and contract details. Parts that can affect the soundness of banks, such as loan review and approval, are not entrusted.
Since the financial authorities need to revise the banking law, they will first test-run the bank agency business through the designation of innovative financial services in July. First of all, the plan is to entrust the proxy work to the post office, which has a nationwide business network and some of the financial affairs. In addition, corporations, credit cooperatives, and savings banks in which banks are the largest shareholders can also act as agents. However, since Internet banks cannot operate face-to-face in the first place, they cannot do agency work.
If the system is implemented, it is expected that it will become commonplace to visit a nearby post office and do banking even if there is no bank branch near the residence.
Authorities explained that proxy work between commercial banks is also possible. For example, assuming that Hana Bank is the main bank and Shinhan Bank is near the house, consumers can visit Shinhan Bank's branches and use Hana Bank services if Hana Bank signed a bank agency contract with Shinhan Bank's branches. Or, if commercial banks created a bank agency on the island through joint investment, islanders will be able to visit the agency to compare and consult loan products from various banks, and then get loans from banks that are suitable for them. However, some question whether it is practically possible to introduce competitive banking products and act on behalf of businesses at a time when competition among commercial banks is fierce.
In the second quarter of this year, authorities plan to discuss specific business methods with prospective bankers, post offices and agents. In the third quarter, it will also push for a revision of the banking law. In addition, the authorities proposed ways to expand joint ATMs in the banking sector and revitalize convenience store deposit and withdrawal services. Joint ATMs are currently being installed and operated in traditional markets in population declining areas, centered on the four major banks (KB Kookmin, Shinhan, Hana, and Woori Bank), but interest from other banks and local governments is low. To encourage participation, joint ATM operation expenses will be included in the social contribution performance starting this year. In addition to traditional markets, the government plans to increase the installation of joint ATMs to government offices and large supermarkets that are frequently visited by people.
It will also reorganize small withdrawal (cashback) and change deposit services at convenience stores that consumers do not know well. Cashback is a service that allows you to collect up to 100,000 won at a time if you go to E-Mart 24 and CU and buy items with a cash card. I'm going to change it so that I can find money without buying things.
[Reporter Chae Jongwon]
