BANK SERVICES IN CONVENIENT STORES

[Anchor Lead]

An increasing number of banks offer services at convenience stores recently. This is to ease inconveniences customers may experience with more and more bank branches shutting down. Can this move be an alternative to help those living in remote regions or the elderly who prefer face-to-face services?

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A customer begins a video call with a banker at a convenience store.

[Soundbite] How can I help you?

The long-distance service is offered for those living in a region where there are no walk-in bank branches. Customers can open bank accounts and have debit cards issued through the service.

[Soundbite] Park Seong-joon(Resident) : "I am really glad to have a bank option close by. Previously, I had to go far away to find a bank. It was inconvenient."

It is also good for banks, as they can make use of convenience stores that can be found nearly anywhere and also comes with lower maintenance costs. So some banks are planning to open video branches at more convenience stores. Another bank is offering services at a convenience store in Jeongseon, Gangwon-do Province. This move is for banks to address repercussions from closing down its branches. One out of seven bank branches has disappeared over the past five years and the pace has grown faster since the COVID-19 pandemic began. Branch closures have led to a reduction in labor force. Roughly 4,200 bank employees have quit jobs this year alone. But only half the vacancies were filled up with new recruits and most of the new hiring are IT employees. Despite record-setting business performances, banks are moving to downsize and go digital. There are concerns that this will leave elderly customers behind.

[Soundbite] Ryu Je-gang(Korea Financial Industry Union) : "COVID-19 relief payouts were doled out through banks. But provincial residents, the elderly or those who are not accustomed to online banking experienced difficulties and inconveniences in that process."

In a move to address these consequences, the government this year introduced stricter rules for banks to reduce their branches. However, more than 300 bank branches have shut down this year alone and banks are instead introducing digital kiosks and long-distance video services in their place.