SC Bank Korea launches keyboard banking

SC Bank Korea launched keyboard banking, which enables banking transactions through smartphone keypad. / Courtesy of SC Bank Korea

By Yoon Ja-young

Following development of fintech, local banks are engaged in a fierce battle in the mobile sector. Some of them scrapped fees while launching remittance services that do not require cumbersome authentication. Others launched an AI-based banking platform, where customers can make financial transactions as if conversing with bank tellers. They have become banks in customers' hands, each offering differentiated digital services.

Standard Chartered Bank Korea (SC Bank Korea), for instance, launched a keyboard banking service for the first time here in January. It enables transactions such as remittance and account checking by simply touching the bank's logo appearing on the smartphone keypad which is widely used for mobile messengers, text messaging, portal site searching or social networking services (SNS). It doesn't require installing an application or cumbersome authentication.

Customers can send money by inputting their bank account numbers, but it doesn't matter even if they don't know the number since they also can do so by simply touching the phone number in their smartphone contact list. While there are similar services offered by Internet companies, the bank explained that customers feel more secure they are using the bank's platform. These transactions are completely free of charge, regardless of whether the money is sent to accounts of SC Bank Korea or those of other banks.

Banks are increasingly interested in non-face-to-face channels since the number of customers visiting their branches is notably falling. According to SC Bank Korea, the number of customers visiting offline branches dipped 40 percent from five years ago, despite surging number of customers and transactions. New services like keyboard banking are thus likely to attract customers thanks to easy access to banking services.

“As the Internet-only banks are attracting customers, conventional banks are also actively adopting new technologies based on their strength as a stable service provider. Their digital services are convenient and differentiated,” an official at a local bank said.

“As smartphones are widely available, competition is getting fierce in the mobile industry which is the most important non-face-to-face platform,” she added.