Link to the original article :
https://www.koreatimes.co.kr/path/A2025051813340005560
By Jun Ji-hye
Jung Yoo-young, 48, a freelance translator living in northeastern Seoul’s Gangbuk District, prefers visiting bank branches in person over using mobile banking. Although relatively young and comfortable using a smartphone, she still feels uneasy about handling sensitive financial information on a mobile device.
“There are constant reports of cyberattacks involving financial institutions or USIM information, so I try to avoid doing important tasks on my phone,” Jung said. “Even if it takes more time, I feel more secure when a bank employee handles things right in front of me at the branch.”
According to a recent survey by local market researcher Consumer Insight, many financial consumers like Jung still prefer to handle high-involvement services offline, despite the rapid digital transformation of the financial sector and the growing use of internet banking.
The nationwide survey, which analyzed the banking experiences of 10,917 customers aged 20 to 69, found that mobile banking is used mainly for simple tasks such as transfers and remittances, which made up 66 percent, and account inquiries, which comprised 57.1 percent.
Less frequently used mobile banking services include foreign currency transactions and cash exchanges (5.1 percent ), access to financial and investment information (6.4 percent), new subscriptions to financial products (8.4 percent) and the management or cancellation of existing products (8.7 percent).
These types of tasks are generally considered high-involvement services.
The findings suggest that financial consumers still tend to favor in-person interactions with bankers when dealing with services that involve complex procedures or require detailed explanations and a deeper level of understanding.
The survey also showed that, among the various reasons customers visit bank branches, the second-most-common reason is to seek information or consultations regarding financial products such as deposits and loans.
Notably, the service with the highest usage rate at branches was basic transactions, including cash deposits, withdrawals and fund transfers.
This aligns with longstanding warnings from experts regarding the potential for increased exclusion during the transition phase of digital transformation within the financial sector.
While experts acknowledge that the reduction in the number of branches is an inevitable and rational outcome of digitalization, they have consistently cautioned that such developments are likely to exacerbate financial exclusion among digitally vulnerable populations, including older adults.
In addition, experts highlighted that decreased access to financial services in regions with a high proportion of digitally disadvantaged customers could negatively impact the long-term economic activity in those areas.
Responding to such concerns, financial authorities have implemented guidelines for bank branch closures since March 2021. However, experts maintain that the standards for determining branch closures remain vague, calling for clearer and more robust criteria.
“Even customers who are not digitally disadvantaged may still have a strong preference for visiting physical branches for a variety of reasons,” said Lee Si-yeon, a researcher at the Korea Institute of Finance. “This demand requires a more prudent approach when making decisions about bank branch closures.”
