The balances of group accounts at major banks have increased by over 60% in five months, but they still have a long way to go to catch up with KakaoBank. The combined balance of four banks—KB Kookmin, Shinhan, Hana, and NH Nonghyup—remains at around 600 billion won, significantly lower than KakaoBank's 11 trillion won.
According to the financial sector on September 29, the total balance of group accounts at the four banks was reported to be 644.56 billion won as of September 23. This marks an increase of 243.66 billion won, or 60.8%, from 400.9 billion won at the end of April. Woori Bank, which does not offer group account products, was excluded from this tally.
As of the end of June, KakaoBank's group account balance stood at 11.7 trillion won, with 13.1 million users. This represents an increase of 1.7 trillion won and over 1 million users compared to the previous year. While the figures for the major banks are as of September 23, and KakaoBank's are from June, the gap between the two remains substantial.
Group accounts are used to manage shared expenses, such as membership fees for social gatherings, family living costs, dating expenses, and travel costs. As their usage expands, major banks are putting effort into attracting customers.
Group accounts allow banks to increase both deposits and customer numbers. When membership fees are deposited into accounts with free withdrawals, banks can secure funds at lower costs than traditional savings accounts. Existing customers can invite family or friends to join, creating opportunities to attract new clients.
Major banks are attempting to differentiate themselves from KakaoBank through interest rates and convenience features. KB Kookmin Bank offers an annual interest rate of up to 2% for its 'KB Group Savings' linked to group accounts, with a maximum of 10 million won per account. Customers can open up to three accounts, allowing for a total of 30 million won to qualify for the preferential rate. Shinhan Bank revamped its 'SOL Group Account' in April, adding a 'Gift' feature that allows users to send financial products on birthdays and other special occasions.
However, the increase in balances at major banks does not indicate a significant shift in the market dominance held by KakaoBank. The number of KakaoBank group account users has already surpassed 13 million. Given the nature of group accounts, existing users can invite others, further expanding the user base, which remains a challenge for major banks.
A financial industry official stated, "Group accounts are products that can secure deposits at lower costs than traditional savings accounts while also attracting new customers. The competition among banks for related services will continue."
* This article has been translated by AI.
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