Shinhan Bank's innovative digital store attracts younger customers
Shinhan Bank's innovative store located in GS Supermarket at Gwangjin-gu, Seoul, May 9. Korea Times photo by Lee Yeon-woo
Elderly customers might need more time to adjust to new system
By Lee Yeon-woo
Shinhan Bank launched a new store last month, promising to offer innovative services to customers by increasing accessibility and extending operating hours. At the digitalized bank inside GS supermarket's Gwangjin-Hwayang branch in Seoul, customers expressed a desire to see more stores like that, but some older customers seemed to be struggling while trying to use the service.
The new store that Shinhan Bank launched in collaboration with GS Retail on April 12 is getting rave reviews from young office workers who found it hard to visit banks during working hours.
“It is good to have this kind of store near home available to visit after coming back from work. I hope more stores will be set up in various locations,” Kim, a 29-year-old office worker based in Seoul, told The Korea Times on Monday.
Kim used the digital desk to have her credit card reissued last month.
“Even though I was unfamiliar with the system at first, it was easier than I thought as I followed the instructions step by step.”
Customers at the digital desk, open until 8 p.m., are provided with almost every service that traditional branches offer, such as opening accounts, reissuing credit cards and loan counseling. Customers who need a more detailed explanation can also make a video call with tellers who offer face-to-face services in traditional branches. A smart Kiosk that offers similar services to a traditional ATM is also placed inside the store, available 24 hours.
Around 70 percent of the visitors are in their 20s or 30s, according to an official from Shinhan Bank.
These new attempts are in the line with traditional banks' ongoing efforts to scale down their organizations by reducing the number of offline stores while expanding contact-free services.
A Smart Kiosk and a ticket dispenser for using the Digital Desk are seen at the Shinhan Bank innovative store in Seoul, May 9. Korea Times photo by Lee Yeon-woo
Unlike customers in their 20s and 30s, however, older customers struggle to use the service by themselves as they are not familiar with the brand-new machines.
“Is there an ATM?” a man, who appeared to be in his 50s, asked as he searched for a machine even though he had the Smart Kiosk that offers an upgraded version of an ATM in front of him. He barely managed to insert his credit card into the kiosk after getting assistance.
In addition, the older generation's distrust of banking without human assistance is another barrier to overcome.
“I've heard that it's possible to talk with bankers (at the digital desk), but I'm not really willing to use them. For example, things such as getting a loan is a big deal. I'd rather talk face-to-face with bankers to decide on such big occasions,” a 60-year-old housewife surnamed Noh told The Korea Times after using the Smart Kiosk to make a deposit.
“It is ideal to run the store unmanned if we stick to the initial plan. But as long as our customers need assistance, we will keep dispatching advisers in the store,” an official from Shinhan Bank told The Korea Times. A robot, which was supposed to assist customers instead of human advisers, was not in operation on Monday.
The Gwangjin-Hwayang store is Shinhan's second innovative store built in collaboration with GS Retail. The first store is located within a GS convenience store in Jeongseon, Gwangwon Province. Shinhan Bank plans to increase the number of stores with GS Retail in the near future and the locations are under discussion.