Internet-only banks tap into fandom culture to engage young customers

The Korea Times

The Korea Times

Finance

Wed, November 29, 2023 | 07:16

Companies

Internet-only banks tap into fandom culture to engage young customers

Posted : 2023-06-28 08:09

Updated : 2023-06-28 15:47

Kim Young-rim, the service owner of KakaoBank's "My Favorite Savings," speaks during a press meeting in Seoul, April 18. Courtesy of KakaoBank

By Lee Yeon-woo

The country's internet-only banks are rolling out new services targeting K-pop fans, weaving fandom culture into their savings products. This initiative is seen as a strategic move to attract and secure younger customers who show significant interest in K-pop idols.

Last Friday, Toss Bank, in collaboration with K-pop powerhouse HYBE, launched a savings product where users can support their favorite members of the survival audition program, "R U Next?"

When a user chooses a specific contestant on the banking platform, a savings account is created with the member's photo on the cover. A user can support up to 22 contestants. Users can also write supportive messages to the performers each time they deposit a certain amount into the account.

Even though the TV program isn't set to air until Friday, the total amount saved by the bank's users already exceeds 223 million won ($171,248) as of Monday.

The internet-only bank mentioned it has added an element of fun to its original saving products by enabling users to show support for their preferred contestants.

KakaoBank's fandom-based savings deposit account, named My Favorite Savings, is also gaining momentum.

The product, which attracted 40,000 subscribers during a 10-day pre-registration period in April, is now contemplating an expansion through collaborations with external partners.

The product encourages users to save money in a way similar to keeping a journal. For instance, if their favorite celebrities upload photos on social media, the subscribers would deposit 1,000 won. And if the celebrities appear on a TV show, they deposit 10,000 won.

The product offers an annual interest of 2 percent and allows customers to personalize their savings accounts with images of their favorite stars.

"We noted that idol fandoms are saving money to document their fandom activities. So we decided to launch the service to provide fans with fun and convenience through our bank," said Kim Young-rim, the service owner of KakaoBank's "My Favorite Savings."

Market watchers suggest that internet-only banks are tapping into fandom culture to engage with younger customers. Such products enable banks to secure teenage customers in advance by lowering psychological barriers for them to use banking products.

"Fandom culture-related services are being launched as banking services usually align with the public interest. It seems that the growing interest in K-culture, accompanied by the expansion of fandom culture, is leading to collaborations between the industry and fintech," said an official from an internet-only bank.

yanu@koreatimes.co.kr