Tellerless transactions jump amid coronavirus

By Lee Kyung-min

Tellerless transactions at banks have jumped over the last two weeks due to the fast-spreading new coronavirus, an industry official said Thursday.

Korea's five major banks ― Shinhan, KB Kookmin, Woori, Hana and NongHyup ―saw more than 32.9 million online transactions combined between Feb. 16 and 22, the week of the virus' rapid spread in Daegu and North Gyeongsang Province.

This is up 6.3 percent, or 1.94 million, from the figure recorded during the same period, last year.

The rise was partly driven by some banks' exemptions of certain service fees. KB Kookmin Bank withdrew online service fees for customers living in Daegu and North Gyeongsang Province, as well as fees for those who deposit or withdraw cash from automated teller machines at branch buildings in the region.

“The online transaction volume in the fourth week of this month is notably higher compared to the first or second week of the month,” a KB official said.

The highest jump was seen by NongHyup Bank, whose transaction volume was up 13.3 percent in the fourth week compared to a year earlier.

“Unless it is regarding taking out a loan, which requires an in-person visit, most customers are using services online,” a NongHyup official said.

Also halted temporarily are banks' new marketing strategy of landing customers by “visiting them where they are.”

The recently-launched senior citizen-targeted marketing involves sending bank workers equipped with a portable electronic device in-person to open bank accounts and introduce financial products. The service drew positive responses from older customers.

“We have received calls from senior community centers to not visit them for the time being. We will not be able to recommence visits until after the virus spread dies down,” he added.

The virus scare has also led to a growing number of bank staff working from home.

KB Kookmin and Shinhan have allowed some workers to telecommute, while Woori has shut down the basement of their headquarters after a confirmed patient was found to have visited there.

NongHyup Bank plans to allow workers to come to work late and leave early.

The move to allow more staff to work from home comes as the Financial Services Commission (FSC) said Tuesday that financial services firms can have their workers telecommute during the “ongoing emergency.”

The virus has killed 13 people and has climbed to 1,595 confirmed cases here as of Thursday.