Kakao Bank attracts more than 1 million accounts in its first five days

2017.07.31 16:13:16 | 2017.07.31 16:48:55

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Kakao Bank of Korea Corp., the second online-only bank, roared in more menacing pace than its earlier counterpart K-Bank , drawing more than 1 million accounts since July 27 launch.

According to the bank managed by Kakao Corp., the country’s largest messenger app operator Kakao Corp., more than 1 million accounts were opened with the mobile banker as of Monday. Openings would have accelerated if not for delays from overload of traffic.

The bank has already exceeded the early starter K-Bank in number of subscribers as its accounts are fewer than 600,000 accounts with 690 billion won ($614.8 million) in deposits and 630 billion won in borrowings since beginning service in April.

Kakao Bank is posing as greater threat to brick-and-mortar lenders KB Kookmin, Shinhan, KEB Hana, Woori, and NH Nonghyup banks in consumer banking.

The country’s major credit card companies are also keeping an eye on the internet-only bank as the number of debit cards issued by Kakao Bank is increasing rapidly.

With growing demand for Kakao Bank services, shares of Kakao Corp. finished Monday at 120,000 won, up 9,000 won or 8.11 percent from the previous session, reaching a record high in 52 weeks.

By Chung Ji-sung

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]