Banks fly high with air mileage accounts

By Kim Jae-won

Bank accounts giving air miles based on account holders’ transactions and balances are drawing attention among financial customers as they are looking for compensation other than extremely low interest, bank officials said Wednesday.

KB Kookmin Bank said its KB Asiana ONE Account has drawn more than 10,000 customers in four months since its launch in February. The bank gives four Asiana Airlines miles to account holders per 500,000 won ($436) of their average balance every month.

“We designed this account to provide financial and airline services to customers at the same time,” said a KB Kookmin official. “We will continue to introduce creative services in cooperation with players in other industries.”

KB said that account holders will be given 20 additional miles if they are paid their monthly salaries worth 500,000 won or more through the account. Customers paying with KB’s credit or debit cards worth 500,000 won or more every month will also get 20 Asiana miles.

Last year, Shinhan Bank enjoyed similar popularity with its Shinhan Asiana Travelers’ Savings Account. All 50,000 of its limited edition accounts were sold out in three months since it was introduced in October 2015.

The account holders were given an additional 2,000 Asiana miles each month they flew internationally on the airline. The bank also gives discount coupons to them, charging only 30 percent of foreign exchange fees.

Asiana said that with the accounts, the airline could create extra revenues as well as informing its brand.

“It was a win-win project,” said Seo Ki-won, a spokesman for Asiana. “We could make more money and expose our brand to banking customers.”

But, the events are only for travelers using Asiana Airlines because no bank has launched such accounts giving miles of its bigger rival Korean Air. The largest airline in the country said that it hosts promotional events mainly with players in the tourism industry, such as hotels, rent-a-car companies and travel agents.

Market watchers said that those who prefer Korean Air should use credit cards offering miles based on their transactions. Lotte Card offers three types of credit cards giving Korean Air miles ― Skypass Lotte Amex Card, Platinum Skypass Card and Diamond Skypass Card. KB Kookmin Card also provides four types of credit cards giving Korean Air’s miles ― Skypass, Platinum, Platinum S and Finetech.