The SOL membership program aggregates transaction performance from four subsidiaries: Shinhan Bank, Shinhan Card, Shinhan Investment Corp., and Shinhan Life. It assesses customer tiers based on individual performance and a family aggregation system that combines family members' transaction records for tier classification and benefits. The key change in this revamp is the consolidation of the existing "Premier++ (3000 points or more)" and "Premier+ (2000 points or more)" tiers into a single "Premier S (2000 points or more)" tier.
Shinhan Financial plans to introduce new financial benefits linked to transactions across its subsidiaries for its top-tier customers. Shinhan Bank will expand its financial offerings, which previously focused on non-financial perks like coupons for coffee shops and mobility platforms, to include preferential interest rates on time deposits. Shinhan Card will adjust its interest-free installment plan limit from the Premier++ tier to the Premier S tier, lowering the eligibility threshold by 1000 points.
Conversely, benefits from Shinhan Life will be reduced. Starting August 1, the preferential interest rate of 0.2% on insurance contract loans, which previously applied to the Premier+ tier, will now only be available to the Premier S tier.
As a result, customers in the Premier tier (1000 points or more) will see their preferential interest rate drop to 0.1%, while those in the Ace tier (600 points or more) will no longer qualify for any preferential rates. This change effectively narrows the customer base eligible for preferential interest rates on insurance contract loans, raising the bar for benefits. Although the reduction in rates ranges from 0.1 to 0.2 percentage points, the impact could be significant for customers who rely on these loans for immediate cash needs. For instance, a customer borrowing 30 million won could face an annual interest difference of about 60,000 won due to the 0.2 percentage point reduction.
Shinhan Life calculates membership points based on the number of contracts, monthly premiums, and total premiums paid. However, achieving the Premier S tier may be challenging for customers who are not long-term clients or do not hold multiple insurance products. Without transaction records from other subsidiaries like the bank, card, or securities, maintaining the preferential interest rate on insurance contract loans becomes difficult. For example, a customer paying 200,000 won monthly for four term insurance policies with a total premium of 25 million won may only accumulate around 600 points.
A Shinhan Life representative stated, "With the restructuring of the SOL membership, financial benefits will be comprehensively revised, and the preferential interest rate on insurance contract loans will be partially reduced. However, we are working on new financial benefits and plan to gradually expand non-financial perks in the future."
* This article has been translated by AI.
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