Economic Essay Contest Foreigners in Korea: making digital banking inclusive

 

In February of this year, I received a pop-up on my phone as I was trying to log into my bank account to check my balance. It said, “Mobile authentication not available. Please visit a bank branch in person to get authentication issued for foreigners."

As someone who’s lived in Korea for three years, and considered conversationally good at Korean, receiving a message like this was at first confusing and surprising. However, I simply followed its instructions after checking its meaning on Papago and went to the bank. I got my waiting number, and the process was fairly easy though the customer service agent did not speak English at all, having gone to the bank nearest to me. Even though it only required a short visit, it was nevertheless an inconvenience I dealt with purely because of being a foreigner. What can banks do to avoid such inconveniences for us?

Most young adults today, myself included, access their bank accounts through their phones. It’s how they check their balance before buying their daily ice Americano, or transfer money to their friend after sharing a dinner. Being able to access something so significant for everyday living in the language one is most comfortable in is vital for foreign customers to not only feel valued but safe.

Having to translate a message that pops up on your screen, or be able to properly read your account history, is important for foreigners to feel that they have financial security with their respective banks in Korea.

Language is naturally where it must start. Many of the major banks in Korea are more than ever prioritizing English-speaking customer service in their in-person offices. However, going to the bank is not the main way people access their day-to-day finances, and banking is more digital than ever. Having the option to access one’s bank application in several languages besides Korean is a start.

This is only one of the financial burdens of residing in another country. For international students in particular, their main income comes from their countries of origin such as the student loans they get from their respective countries or allowance from family. Many foreigners use wire transfer applications such as Wise and Remitly to transfer both large and small amounts of money. These applications make the processes very easy and efficient, but there is nevertheless a hint of skepticism about having a third party dealing with one’s international transfers, and essentially, one’s money.

I believe Korean banks would highly benefit from simplifying the ability to transfer money internationally both in-person and on their digital platforms. This has already begun in several major banks through collaboration with other banks around South-East Asia for example, and it would be highly beneficial to expand on these efforts.

Korean banks have already made great progress in adhering to the needs of foreign residents and tourists, such as opening more banks targeted to foreigners with customer service available in several languages. However, in some sense, I view this to be almost putting a band aid on a bullet wound. Do most foreigners really want to spend their free afternoon or lunch break going to the bank because they cannot navigate their bank applications well? To answer for myself, I know that I would much prefer being able to do the same things that Koreans are able to do on their phones, than having to go to the bank to achieve the same outcome.

The last point I’d like to make, therefore, is that inclusion means putting foreigners and Koreans in a position of having the same opportunities. For foreigners to feel included by Korean banks, and not experience inconveniences, is to treat them to the same standard that a Korean customer is treated by. For foreigners who wish to live in Korea long-term, knowing that they can easily get a loan, or a credit card to rent that apartment or to buy that blouse is vital.

Although services are more accessible than ever for foreign customers, the "bureaucracy" that a foreign customer must go through, is different from that of a Korean customer. In many cases, foreigners in Korea must go through a third-party agent to obtain a loan. It is understandable for short-term residents that the process is difficult, but for those on long-term visas or with permanent residence, who know they are in it for the long haul – these extra steps make it hard for people to feel included.

For too long, foreigners have had to take initiative and go the extra mile to feel integrated in Korean society, and to handle their finances here. With the foreign working population in Korea continuously growing, it is about time that initiative happens from the other end.

Martine Aamodt Maksutova is a student at the Yonsei University.