Year-end gatherings fuel demand for group banking accounts

Image promoting KakaoBank's group account feature / Korea Times file

Kim Jin-a, 32, a marathon club leader, uses KakaoBank’s group account when buying T-shirts in bulk and paying race fees.

“Our marathon club has to manage monthly race fees and team T-shirt costs. KakaoBank’s group account has helped me a lot.”

The transparent records shared among members ensure there are no misunderstandings about how the collected funds are spent.

“There’s no room for suspicion or doubt, since members can see where their money goes. Other expenses are also easily manageable. Without the group account, I would have had to check everything manually — a lot of time spent on work that often goes underappreciated.”

Similarly, Lee Jun-seung, 39, an office worker, said Toss Bank’s group account Co-leader feature is very useful, since each leader’s daily spending is capped at 1 million won ($682).

“My friends and I sometimes had disagreements in the past over one person — whoever was in charge at the time — spending too much on unnecessary things. This feature helps eliminate that risk," Lee said.

All group members can monitor monthly fee contributions in real time, and whenever funds are spent, all members receive automatic notifications with the transaction details.

Sharing discretion and responsibility ensures transparency and helps prevent conflicts, he said, adding that this is particularly useful during year-end gatherings.

“Gatherings are meant for fun and happiness, not arguments over how money was spent. This new technology feature is beneficial for everyone. I think we would enjoy ourselves more without the unaddressed financial disputes hanging over our heads," he said.

The two are among many who increasingly turn to group accounts to manage shared funds for group activities. Demand is growing, particularly as year-end gatherings approach.

KakaoBank had over 12.2 million users sign up for group accounts as of September. Combined balances totaled 10.5 trillion won at the end of September, up more than 2 trillion won from the previous year.

The service quickly grew its market share, thanks to its seamless integration with Korea’s top messenger, KakaoTalk.

The Kakao subsidiary offers features tailored to shared experiences, such as running or leisure groups. Since May, it has offered lessons with popular sports stars — a benefit widely appreciated by group account holders.

Shinhan Bank’s SOL group account recently surpassed 500,000 users and offers annual interest rates of up to 4.1 percent on deposits of up to 1 million won per month.

The Toss Bank group account offers an annual interest rate of 2.3 percent, even for deposits held for just one day.