Banks woo younger generation with pop-up stores and digital wallet

By Lee Yeon-woo

Banks are striving to appeal to younger customers by reshaping their image to appear more youthful and dynamic, launching pop-up stores and user-friendly mobile payment systems. The efforts come as they have to compete with fast-growing internet-only banks.

For this purpose, a special airplane-themed installation operated by Hana Bank has popped up in Seongsu-dong, eastern Seoul.

A speaker rings out, “We extend a welcome to all our customers who have visited Seongsu International Airport.”

Following the announcement, excited visitors begin ascending the stairs to board the airplane-shaped structure. Inside, they can choose their destination from among 18 countries, and get baggage stickers issued.

Intended to showcase the bank's Travlog foreign currency exchange service available in the 18 countries, the pop-up has garnered positive responses from visitors who appreciate the feeling of international travel. In just two weeks, it has drawn in more than 16,000 visitors.

Banks are wooing younger customers as the rise of digital technology in financial environments presents a challenge despite the traditional banks' historical dominance in the market.

According to a recent survey conducted by Vinu Labs, the operator of Everytime, a community app for university students, nearly half of university students are reported to prefer using the apps of digital-only banks, such as Toss and KakaoBank.

Launching pop-up stores is one of the most common yet effective strategies employed for changing a brand's image.

From July 6 to 30, Woori Bank operated its WON THE VIBE pop-up store in Hapjeong-dong, western Seoul, in collaboration with Mapo District Office. Visitors could brows through selected items such as LPs and artbooks, showcased to support small and medium-sized businesses. This marked the third time Woori has collaborated in launching a pop-up store, following collaborations with Musinsa and Everland.

Since 2021, Shinhan Bank has also been running four flagship branches intending to offer a varied customer experience beyond traditional banking services. Customers can assess their financial tendencies and even enjoy art exhibitions at the branches.

As younger generations are more adept at online payments, banks are increasingly focusing on user-friendly mobile payment systems as well.

In March, Hana partnered with Samsung Pay to launch a mobile student ID app. Approximately 100 high schools in partnership with Hana can now issue their student IDs via Samsung Pay. This process allows the addition of a student ID function when a Hana Bank debit card is registered on Samsung Pay.

Last August, Woori Financial Group introduced its Yonsei Pay service, which incorporates transaction and transfer functions into the student ID app for Yonsei University students.

Meanwhile, both KB Kookmin and Shinhan Banks are embracing metaverse technology in digital wallets. Through their respective apps for university students, Liiv Campus and Hey Young Campus, the two are actively engaging with local universities to issue mobile student IDs with various financial functions, in addition to metaverse technology.

“Securing a new customer base is crucial for continued success. Banks are actively exploring ways to better resonate with the younger generation through various promotional activities,” said an official from a commercial bank.