Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Starbucks motivates KB to abandon multi-app strategy
Seen are mobile apps launched by KB Kookmin Bank. / Screen captured from Google Play
By Park Jae-hyuk
By Park Jae-hyuk
KB Financial Group Chairman Yoon Jong-kyoo's continuous efforts to emulate Starbucks Coffee have finally led the group's banking unit to start resolving a long-pending problem ― too many mobile banking apps.
KB Kookmin Bank said it will carry out an integrated banking project until August next year with the aim of reducing the number of its mobile apps.
The bank has launched nearly 20 apps over the past few years, in contrast to its rival Shinhan Bank which came up with the integrated SOL app in 2018 after merging its six mobile banking apps.
Woori and Hana banks have also provided their customers with financial services through single apps named Woori WON Banking and Hana 1Q.
The reason KB Kookmin has clung to the “multi-app strategy” was to cope with the rapidly changing financial environment and regulations. The bank also took account of the lower speeds of integrated apps.
This was a similar strategy adopted by Bank of America which has offered various services including authentication, retail banking and asset management through multiple apps.
However, the strategy has prompted customers to ridicule KB Kookmin, calling it a “graveyard of apps.” They have complained of the bank's strategy because they have had to install at least seven apps for personal banking.
In response to the complaints, the bank eventually decided to abandon its multi-app strategy.
“We have yet to map out a specific plan, but basically, we aim to reduce the number of apps,” a KB Kookmin spokesman said.
This decision came as the KB chairman has continued to emphasize “seamless” services, citing the Starbucks Siren Order app as an example.
At the group's 12th anniversary ceremony, he urged KB employees to develop the “number one financial platform.”
He mentioned the Starbucks app which allows customers to order customized coffee as a benchmark of app excellence in his New Year speech this year, calling for employees to innovate and advance the group's core infrastructure and working proceses.
Industry officials expect KB Kookmin will speed up its efforts to innovate its mobile apps after it finishes hiring new employees at the end of the year.
The bank will ask job applicants to write a three-page report analyzing one of its three main apps ― KB Star Banking, Liiv and KB my money ― if they pass a written test.