Starting next week, residents in rural and declining population areas will be able to access bank loan services at their local post offices.
The Financial Services Commission announced on July 13 that it has signed a memorandum of understanding (MOU) with the Korea Post, the Financial Settlement Agency, and major banks including KB Kookmin, Shinhan, Woori, and Hana. The pilot program for bank agency services will begin on July 20 at 20 post offices in areas experiencing population decline. Under this system, post offices will handle loan consultations, applications, and agreements on behalf of banks.
To minimize inconveniences during the initial phase of the program, the Financial Services Commission has designated dedicated personnel for bank agency services at each post office. Training sessions were conducted in May and June, and a hotline connecting post offices with nearby bank branches has been established. For the first one to two weeks after the launch, bank staff will be dispatched to post offices to assist with loan consultations, applications, and agreement processes.
Initially, the loan processing period will require a minimum of two days, but plans are in place to implement digital documentation and a large-scale file transfer system by the end of the year to expedite this process.
The Financial Services Commission intends to review the results of the pilot program and expand the areas and products offered under the bank agency business next year. The services currently available in declining population areas will be extended to other regions, and the range of products will be broadened from personal loans to include loans for individual business owners, in consultation with relevant agencies.
Kim Jin-hong, Director of the Financial Industry Bureau at the Financial Services Commission, stated, "The bank agency pilot program is a viable alternative to enhance financial accessibility for residents in areas without nearby bank branches. I urge thorough final checks on staff training, IT systems, and consumer guidance systems before implementation."
* This article has been translated by AI.
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