Local banks also reduced their branches… Joint and digital stores, etc. Speed

[아시아경제 유제훈 기자] While bank branches are gradually shrinking due to non-face-to-face and digitalization of financial transactions, local banks are drawing attention as they are introducing various innovative branches to respond to the reduction of branch offices and the financially vulnerable.

According to the Financial Supervisory Service’s economic statistics system on the 23rd, as of the end of September last year, the number of branches (branches and branch offices) of six regional banks (Busan, Daegu, Gyeongnam, Gwangju, Jeonbuk, and Jeju) was counted at 803. This is a decrease of about 16.4% compared to the end of September 2017 (961), about five years ago.

The reason local banks are reducing their branches is not much different from commercial banks. This is because demand is gradually decreasing due to non-face-to-face and digitalization of banking transactions. According to the Bank of Korea, as of the third quarter of last year, face-to-face transactions and CD/ATM accounted for 5.0% and 14.9% of deposit and withdrawal transactions, respectively, down 5.2 percentage points and 21.4 percentage points from the third quarter of 2017, five years ago. On the other hand, the share of Internet banking transactions stood at 77.4%, up more than 30 percentage points from 43.5% five years ago.

However, local banks are also worried about the deterioration of accessibility for the financially underprivileged, such as the elderly, due to the reduction of stores. In particular, rural areas, which are home to local banks, have a considerably higher proportion of the elderly compared to the metropolitan area. According to the National Statistical Office, as of the end of last year, the proportion of the elderly population aged 65 or older was 17.6% in Seoul, 15.6% in Incheon, and 14.7% in Gyeonggi, while Jeonnam (25.2%), Gyeongbuk (23.8%), Jeonbuk (23.2%), and Gangwon (22.8%). , Busan (21.5%) and some other provincial cities and provinces have risen to around the 20% mark.

Accordingly, local banks that have recently entered are speeding up the establishment of innovative stores to compensate for this. Last year, BNK Busan Bank and KB Kookmin Bank opened the first joint branch of a provincial bank in Geumgok-dong, Buk-gu, Busan. The Busan Bank Geumgok-dong office was relocated to the Kookmin Bank Geumgok-dong branch office building. In this store, each bank has four employees, and they share the space, such as the guest room, the automated corner, and the parking lot. Spaces required for individual business, such as counters and safes, are separately operated.

In some cases, like commercial banks, they work hand in hand with this industry. DGB Daegu Bank recently collaborated with 7-Eleven to launch the ‘Digital #2 Store’ at the 7-Eleven Daegu Samdeok First Store located in Samdeok-dong, Jung-gu, Daegu. This is the second digital store opened after opening the first digital #1 store at 7-Eleven Daegu Naedang Station in June of last year. One kiosk (STM) and one ATM are installed at this branch and operate 24 hours a day. About 50 banking services can be performed at the kiosk, including new and reissued bankbooks for deposit and withdrawal, issuance of check cards, OTP, and various reports.

Reporter Yoo Je-hoon kalamal@asiae.co.kr