Written by Lee Yeon Woo
South Korea’s leading financial companies are successively releasing “super apps” that allow customers to access all financial services within a single application. This trend represents a strategic move to remain competitive against big tech companies and internet-only banks, while aiming to reduce labor costs through increased digitization.
Last week, Shinhan Financial Group launched Super SOL, a super app that integrates the core functions of apps from five subsidiary companies, including banks, cards, and securities. The user base of this app exceeded 1 million users in just 5 days after its release.
In 2021, KB Financial Group became a pioneer in launching such services with “KB Star Banking”, which integrates 70 major services. The first of its kind in the financial services space, it ranks first among the top five financial group applications with 11 million monthly active users.
Woori Financial Group is also preparing to launch its integrated platform “New WON” in the second half of 2024. Meanwhile, Hana Financial Group and Nonghyup Financial Group plan to gradually incorporate various new features into their existing apps.
However, in terms of digitalized platforms, the Big Five still lag behind internet-only banks and big tech companies.
There are growing expectations that the dominance of traditional banks will fade in the future, and competition to strengthen financial platforms will intensify. This trend is also expected to lead to lower costs as the need for physical branches and staff is reduced.
Analysts expect non-interest income to increase due to fees from various financial services offered through these platforms. This includes services such as insurance and pension rebalancing and investment fund product recommendations.