K-Bank stands on par with rural banks on deposit balance

2021.04.07 14:02:15 | 2021.04.07 14:03:45

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K-Bank, the pioneer in internet-only bank in Korea, has quickly bounced back from a nine-month idling on running out of capital to now stand on par with traditional banks in regional areas with deposit base passing $9 billion milestone.

The outstanding balance of personal savings and deposits at K-Bank has exceeded 10 trillion won ($9 billion) so far this month, adding nearly 15 percent in a week and fivefold from the end of June last year when it was able to normalize loan business.

Its balance is twice bigger than Jeju Bank and nearly matches Jeonbuk Bank, a mid-sized regional bank operating mainly in North Jeolla Province, bank sources said Wednesday.

Arrival on the 10 trillion won deposit milestone has been faster for internet lenders.

It took more than 11 years for Shinhan Bank, a major commercial bank in Korea, to achieve the same level in personal deposits and KB Kookmin Bank 27 years.

K-Bank’s personal savings and deposits ballooned from 2.3 trillion won at the end of 2019 to 3.7 trillion won at the end of 2020. Only three others among the country’s 12 commercial lenders recorded a double-digit growth rate over the same period.

K-Bank has been going all out to attract customers. It has partnered up with Upbit, the country’s largest virtual currency exchange, launched a savings account service that gives annual interest of 0.5 percent even for money parked for just a day along with new loan services.

The online-only bank celebrated its fourth year anniversary last Saturday with the milestone customer count of 4 million.

By Pulse

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