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South Korea sees offline banking decrease in favour of fintechs

Tuesday 6 October 2020 13:59 CET | News

South Koreans visiting banks for money withdrawal, deposit, and transfer have decreased in numbers due to online and mobile banking users multiplying. 

As people of all ages use smartphones for bank businesses, South Korea-based banks expand online banking services including dedicated smartphone apps. According to central bank data, the rate of customers visiting offline banks to withdraw and deposit money was 7.4% in the second quarter 2020, the lowest in 15 years, while the rate of those using online or mobile banking services reached 64.3%. The usage rate of automated teller machines (ATMs) has decreased by 6.4% on-quarter, according to ajudaily.com.

The Bank of Korea predicted that the rate of people visiting offline banks will decrease further as smartphone banking apps provide convenient and quick loan services. About KRW 81 trillion worth of transactions were made using digital payment systems operated by digital banks and online shopping services in 2019.


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Keywords: offline banking, South Korea, fintech, banks, Bank of Korea, mobile banking, online banking, withdrawal, deposit, transfer, smartphone, apps, central bank, ATMs, banking apps, digital banks, digital payments, online shopping
Categories: Banking & Fintech | Online & Mobile Banking
Countries: Korea, Republic of
This article is part of category

Banking & Fintech