REDUCED BANK BRANCHES

[Anchor Lead]

Banks came under fire for their decisions to reduce the number of branches as a way to cut back on operating losses. Critics say that the move will make it difficult for elderly people to deal with financial affairs. In order to dispel such concerns, banks are coming up with new measures like opening shared branches. But customers say that these efforts are not enough.

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The signboards of two different banks hang above the entrance. Inside, employees of the two banks share the space but work in separated zones. This is a shared bank branch, the first of its kind to be set up in the nation’s banking industry. Last year, banks closed down their branches in this region due to diminishing profitability. But they decided to open a shared branch as a way to soothe complaints from elderly customers.

[Soundbite] Lee Jeong-ae(Yongin Resident) : "It is inconvenient for the elderly who are not accustomed to the Internet and mobile services, I hope that bank branches will not close down."

With mobile financial transactions surging, banks are moving to reduce local branches to save costs. This trend has gained greater speed amid the pandemic. Last year alone, over 300 bank branches disappeared in the country. But this means more trouble for the elderly people. The proportion of those using mobile financial services in this age group is just a third of those in their 20s and 30s. Financial authorities and some local governments are operating or preparing education programs to help the elderly learn how to conduct financial transactions online. But the programs are mainly limited to teaching skills to use smartphones.

[Soundbite] Choi In-hyuk(Yongin Resident) : "My son is a computer science professor. I live alone and he makes weekly visits. But we just have chats. Mobile banking and financial transactions are a little bit difficult for me."

Banks are devising solutions such as opening more shared branches or commissioning post offices with the tasks of dealing with monetary withdrawals and deposits. However, they have not been able to arrange detailed schedules to introduce such measures, indicating prolonged inconveniences for elderly users.