By Yi Whan-woo
Shinhan Bank is expanding its presence in the app-based food delivery market, after starting a trial run in November 2021 and officially launching the service in January.
The number of subscribers to Shinhan Bank's app increased by 8.5 times to 157,301 between January and June, according to big data analysis company Mobile Index, Tuesday.
"That number is still minuscule compared to Baedal Minjok," an industry source said, referring to the country's top food delivery app run by Woowa Brothers with 19.9 million subscribers. "But it is still worth considering Shinhan Bank came from nowhere in the industry, which is dominated by the big tech firms."
The source attributed Shinhan Bank's faster-than-expected growth in the app-based food delivery market to its low commission rate of 2 percent, far less than Baedal Minjok's 6.8 percent.
The lender also has capitalized on its financial know- how to introduce loans customized for delivery drivers.
"Under the circumstances, Shinhan Bank is getting requests from numerous restaurant owners nationwide to expand app services to where they operate," another source said.
The app-based food delivery market size is currently at 12 trillion won ($9.17 billion) yet consumer demand still outstrips supply.
Shinhan Bank views the company's app as "a fresh attempt on the path to innovative finance."
In the long term, it plans to use the app as a source of big data, rather than a source of income, for the creation of relevant financial products.
Shinhan Bank is expanding its presence in the app-based food delivery market, after starting a trial run in November 2021 and officially launching the service in January.
The number of subscribers to Shinhan Bank's app increased by 8.5 times to 157,301 between January and June, according to big data analysis company Mobile Index, Tuesday.
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| Shinhan Bank headquarters in central Seoul / Courtesy of Shinhan Bank |
The source attributed Shinhan Bank's faster-than-expected growth in the app-based food delivery market to its low commission rate of 2 percent, far less than Baedal Minjok's 6.8 percent.
The lender also has capitalized on its financial know- how to introduce loans customized for delivery drivers.
"Under the circumstances, Shinhan Bank is getting requests from numerous restaurant owners nationwide to expand app services to where they operate," another source said.
The app-based food delivery market size is currently at 12 trillion won ($9.17 billion) yet consumer demand still outstrips supply.
Shinhan Bank views the company's app as "a fresh attempt on the path to innovative finance."
In the long term, it plans to use the app as a source of big data, rather than a source of income, for the creation of relevant financial products.
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